American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q1 2022 Earnings Presentation
31 slides from American International Group, Inc. New's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Financial Results Presentation
First Quarter 2022 Financial Results Presentation May 4, 2022 Copyright ® 2022 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG.
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement This document and the remarks made within this presentation may include, and officers and representatives of AIG may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward looking stateme
Slide 3: 1Q22 Net Income and APTI reflect continued strong underwriting margin
1Q22 Net Income and APTI 1Q22 Financial ▪ Net income attributable to AIG common shareholders was $4.3B, or $5.15 per diluted common share, compared to $3.9B, or $4.41 per common share, in 1Q21, primarily due to higher net realized gains on Fortitude Re funds withheld embedded derivative and reflect
Slide 4: Continued strong operating performance in General Insurance
Continued strong operating ($M, except per common share amounts) 1Q21 1Q22 Variances performance in General Adjusted Pre-tax Income (Loss): Insurance General Insurance $845 $1,211 43% ▪ General Insurance APTI of $1.2B reflects strong underwriting Life and Retirement 941 724 (23%) results; The combin
Slide 5: General Insurance: Built a stable and profitable underwriting portfolio
General Insurance: Built a General Insurance Accident Year Combined Ratio, As Adjusted stable and profitable (1,150) bps underwriting portfolio 101.0% 99.4% 98.8% 96.1% 96.1% 95.9% 95.8% 95.5% 94.9% 93.3% 92.9% 92.4% 91.1% 90.5% 89.8% between 2018 and 2021 89.5% 14.5% 14.1% 12.5% 12.5% 12.6% 12.4% 1
Slide 6: Gross investment income (GII), APTI basis
Gross investment income Invested Assets & Gross Investment Income, APTI Basis (GII), APTI basis* General Insurance Life and Retirement Other Operations Total AIG Gross Investment Income, APTI basis ($M) $3,242 157 $3,105 572 669 $2,422 103 $2,196 292 267 Interest & dividends Alternative investments
Slide 7: 1Q21 and 1Q22 noteworthy items
1Q21 and 1Q22 noteworthy items 1Q21 1Q22 EPS – EPS – ($M, except per share amounts) APTI AATI1 APTI AATI1 Diluted2 Diluted2 Catastrophe losses, net of reinsurance3 $441 $348 $0.40 $275 $217 $0.26 Favorable PYD, net of reinsurance 37 29 0.03 93 73 0.09 Prior year premiums (3) (2) (0.00) (36) (28) (0.
Slide 8: General Insurance: Global Commercial Lines NPW grew 6%
General Insurance: Global ($M) 1Q21 1Q22 General Insurance Net Premiums Written ($M) Commercial Lines NPW grew Net premiums written $6,479 $6,633 Global Commercial Lines Global Personal Insurance 6%; AYCR, as adjusted Net premiums earned $5,866 $6,256 $4,769 $5,037 Loss and loss adjustment expense i
Slide 9: General Insurance: North America NPW growth of 8%
General Insurance: North ($M) 1Q21 1Q22 North America Net Premiums Written ($M) America NPW growth of 8% Net premiums written Commercial Lines $2,930 $3,151 $2,930 $3,151 and a 5.0 point improvement Personal Insurance 2,787 143 2,952 199 $143 $199 in AYCR, as adjusted Net premiums earned $2,388 $2,7
Slide 10: General Insurance: Strong International Commercial Lines NPW growth of 10%
General Insurance: Strong ($M) 1Q21 1Q22 International Net Premiums Written ($M) International Commercial Net premiums written Commercial Lines $3,549 $3,482 $3,549 $3,482 Lines NPW growth of 10% Personal Insurance 1,982 1,567 2,085 1,397 (constant FX) and a 3.3 point Net premiums earned $3,478 $3,4
Slide 11: Life and Retirement: NII declined due to lower yield enhancements
Life and Retirement: NII Adjusted Pre-tax Income (APTI) ($M) Noteworthy Items ($M) declined due to lower yield $941 1Q21 1Q22 Variance enhancements and sale of $142 $724 Return on alternative investments 292 267 (25) affordable housing portfolio $307 $124 Other yield enhancements 193 32 (161) $225 I
Slide 12: Life and Retirement: Solid sales growth in Individual Retirement
Life and Retirement: Solid Individual Retirement sales growth in Individual Premiums and Deposits ($M) Net Flows ($M) Assets Under Administration ($B) APTI ($M) 1Q22 vs 1Q21 APTI reflects Unfavorable impacts from: Retirement; Favorable group $3,881 $874 $149.5 $384 ▪ Lower yield enhancement income ▪
Slide 13: Life and Retirement: Life Insurance reflects solid international life sales
Life and Retirement: Life Life Insurance Insurance reflects solid New Business Sales ($M) Premiums and Deposits ($M) APTI ($M) 1Q22 vs 1Q21 APTI reflects Favorable impacts from: international life sales $114 (+5% vs. 1Q21) $1,169 (+3% vs. 1Q21) ($9) n.m. ▪ Less adverse mortality growth, but continue
Slide 14: Other Operations: APTL improved
Other Operations: APTL improved due to lower interest expense and higher income from Global Real Estate portfolio ($M) 1Q21 1Q22 ▪ Other Operations APTL was $421M, including $133M of Corporate and Other reductions from consolidation and eliminations, compared ($552) ($547) to APTL of $530M, includin
Slide 15: Financial flexibility remains strong: Parent liquidity position of $9.1B
Financial flexibility remains Capital Structure ($B) Risk Based Capital (RBC) Ratios4 strong: Parent liquidity $90.8 $1.2 $79.8 Hybrids 1 Period Life and Retirement Companies General Insurance Companies position of $9.1B $20.7 1.2 $20.5 Financial Debt 1,2 $3.0 2020 433% (CAL) 460% (ACL) $3.9 $0.5 $2
Slide 16: Share Repurchases and Liability Management
Share Repurchases and Share Repurchases Liability Management ($M) 1Q21 2Q21 3Q21 4Q21 1Q22 Aggregate Share Repurchases $362 $230 $1,059 $992 $1,403 Number of Shares Repurchased 8 5 20 17 23 ▪ Repurchased $3.5B, 61M shares or roughly 7% of % of Shares Repurchased1 0.9% 0.5% 2.3% 2.1% 2.9% shares outs
Slide 17: Continued progress towards the separation of Corebridge
Continued progress towards Key Milestones Associated With the Separation of Corebridge the separation of Corebridge ✓ On July 14, 2021 AIG announced sale of 9.9% equity stake of Life & Retirement for $2.2B ✓ amount In 4Q21 Corebridge declared $8.3B dividend payable to AIG and issued promissory note
Slide 18: AIG 200: Continued execution of global, multi-year initiative
AIG 200: Continued execution 1 The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by simplifying processes and tools to create a contemporary data architecture of global, multi-year initiative General 2 Transform Japan business into a next-generation digita
Slide 19: Copyright notice
Copyright ® 2021 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG.
Slide 20: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Glossary of Non-GAAP Throughout this presentation, we present our financial condition and results of operations in the way we believe will be most meaningful and Financial Measures representative of our business results. Some of the measurements we use are “Non-GAAP financial me
Slide 21: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Glossary of Non-GAAP ▪ Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (Loss) (AOCI) adjusted for the cumulative unrealized gains Financial Measures and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Boo
Slide 22: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Glossary of Non-GAAP ▪ Adjusted Revenues exclude Net realized gains (losses), income from non-operating litigation settlements (included in Other income for GAAP purposes) and changes in fair Financial Measures value of securities used to hedge guaranteed living benefits (includ
Slide 23: Non-GAAP Reconciliations - Adjusted Pre-tax and After-tax Income
Non-GAAP Reconciliations- (in millions) 1Q21 Quarterly 1Q22 Adjusted Pre-tax and Pre-tax income from continuing operations Adjustments to arrive at Adjusted pre-tax income Changes in fair value of securities used to hedge guaranteed living benefits $ 4,728 (22) $ 5,835 (13) After-tax Income - Change
Slide 24: Non-GAAP Reconciliations - Adjusted Pre-tax and After-tax Income
Non-GAAP Reconciliations- (in millions) 1Q21 Quarterly 1Q22 Adjusted Pre-tax and After-tax net income, including noncontrolling interests Noncontrolling interests (income) loss Net income attributable to AIG $ $ 3,930 $ (54) 3,876 $ 4,656 (396) 4,260 After-tax Income - Dividends on preferred stock N
Slide 25: Non-GAAP Reconciliations - Book Value Per Common Share
Non-GAAP Reconciliations- Book Value Per Common Share Book Value Per Common (in millions, except per common share data) As of March 31, June 30, September 31, December 31, Share Book Value Per Common Share Total AIG shareholders' equity $ 2021 62,679 $ 2022 55,944 $ 2021 66,083 $ 2021 64,863 $ 2021
Slide 26: Non-GAAP Reconciliations - Return on Common Equity
Non-GAAP Reconciliations- Return on Common Equity Return on Common Equity (in millions) Return On Common Equity Computations 1Q21 Quarterly 1Q22 Annualized net income attributable to AIG common shareholders (a) $ 15,476 $ 17,012 Annualized adjusted after-tax income attributable to AIG common shareho
Slide 27: Non-GAAP Reconciliations - Accident Year Loss Ratio and Combined Ratio
Non-GAAP Reconciliations- General Insurance General Insurance - North America Accident Year Loss Ratio, Quarterly 1Q21 1Q22 Quarterly 1Q21 1Q22 as adjusted, and Accident Loss ratio Catastrophe losses and reinstatement premiums 65.6 (7.3) 60.9 (4.5) Loss ratio Catastrophe losses and reinstatement pre
Slide 28: Non-GAAP Reconciliations - Accident Year Loss Ratio and Combined Ratio
Non-GAAP Reconciliations- General Insurance - International General Insurance - International - Accident Year Loss Ratio, Quarterly 1Q21 1Q22 Commercial Lines Quarterly 1Q21 1Q22 as adjusted, and Accident Loss ratio Catastrophe losses and reinstatement premiums 56.0 (1.9) 59.9 (6.4) Loss ratio Catas
Slide 29: Non-GAAP Reconciliations - Accident Year Loss Ratio and Combined Ratio
Non-GAAP Reconciliations- General Insurance Quarterly Accident Year Loss Ratio, Loss ratio 2Q'18 65.7 3Q'18 88.6 4Q'18 80.1 1Q'19 63.1 2Q'19 63.0 3Q'19 69.3 4Q'19 65.6 1Q'20 2Q'20 66.8 72.6 3Q'20 74.6 4Q'20 70.2 1Q'21 65.6 2Q'21 61.3 3Q'21 68.4 4Q'21 61.8 FY'18 75.7 FY'21 64.2 as adjusted, and Accid
Slide 30: Non-GAAP Reconciliations - Gross and Net Premiums Written Constant Dollar
Non-GAAP Reconciliations- Gross Premiums Written – Change in Constant Dollar Gross and Net Premiums General Insurance Total Commercial Insurance Personal Insurance Written – Change in Foreign exchange effect on worldwide premiums: 1Q22 1Q22 1Q22 Change in net premiums written Increase (decrease) in
Slide 31: Non-GAAP Reconciliations - Premiums
Non-GAAP Reconciliations- (in millions) Quarterly Premiums Individual Retirement: Premiums Deposits $ 1Q21 25 $ 3,349 1Q22 55 3,830 Other (1) (4) Premiums and deposits $ 3,373 $ 3,881 Individual Retirement (Fixed Annuities): Premiums $ 25 $ 56 Deposits 615 1,519 Other (2) (6) Premiums and deposits $
American International Group — Q1 2022 Earnings Presentation on 6ix