American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q2 2011 Earnings Presentation
24 slides from American International Group, Inc. New's earnings presentation, Aug 5, 2011
Slide 1: American International Group, Inc. Second Quarter 2011 Results
AIG F American International Group, Inc. Second Quarter 2011 Results Conference Call Presentation August 5, 2011 1
Slide 2: Cautionary Statement Regarding Projections and Other Information About Future Events
Cautionary Statement Regarding Projections and Other Information About Future Events It should be noted that this document and the remarks made on the conference call may include projections and statements which may constitute “forward-looking statements” within the meaning of the Private Securities
Slide 3: Agenda
Agenda 1. Overview – Robert H. Benmosche 2. Financial Overview – David L. Herzog 1. Consolidated Results 2. Chartis Results 3. SunAmerica Financial Group Results 4. Tax 3. Q&A 3
Slide 4: Overview
Overview Robert H. Benmosche President and Chief Executive Officer 4
Slide 5: Highlights of the Quarter
Highlights of the Quarter Completion of stock offering Strong core insurance operating results Volatility of Maiden Lane II & III fair value Significant catastrophe losses No significant prior year reserve development Positive pricing trends in selected U.S. lines of business Strong sales across pro
Slide 6: Financial Overview
Financial Overview David L. Herzog Executive Vice President and Chief Financial Officer 6
Slide 7: Earnings Highlights
Earnings Highlights Second Quarter Year-to-Date ($ millions, except earnings per share) 2011 2010 Change 2011 2010 Change Revenues $16,676 $18,314 (8.9%) $34,112 $36,869 (7.5%) Income (loss) from continuing operations 2,094 496 322.2% 914 2,584 (64.6%) Income (loss) from discontinued operations, net
Slide 8: Consolidated Performance
Consolidated Performance Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change Continuing insurance pre-tax operating income: Chartis $789 $955 (17.4%) $326 $1,834 (82.2%) SunAmerica 743 858 (13.4%) 1,886 1,977 (4.6%) Sub-Total - Continuing Insurance 1,532 1,813 (15.5%) 2,212 3,
Slide 9: After-Tax Operating Income Reconciliation
After-Tax Operating Income Reconciliation Second Quarter Year-to-Date ($ millions, except earnings per share) 2011 2010 Change 2011 2010 Change After-tax operating income (loss) attrib. to AIG $1,276 $793 60.9% $3,306 $1,430 131.2% Restructuring: Net Income from divested businesses (mainly AIA) 10 4
Slide 10: Per Share Measure Details
Per Share Measure Details Second Quarter Year-to-Date 2011 2010 Change 2011 2010 Change Net Income (Loss) attrib. to AIG From Continuing Operations $1,889 ($32) 6,085.6% $512 $1,418 (63.9%) Income allocated to Series C Preferred Stock - - NM - (1,131) (100.0%) Deemed Dividends - - NM (812) - NM Net
Slide 11: 2Q 2011 Capital Structure
2Q 2011 Capital Structure ($ in billions) $161.6 FRBNY Facility Senior Debt¹ $21.0 Junior Subordinated Debt $130.7 $13.0 $11.7 $0.4 $13.5 Redeemable NCI attri. to AIA/ALICO SPVs² $2.2 $12.0 Redeemable 3rd Party NCI $23.0 $11.5 $0.1 ($ in billions) Equity Units Series C Preferred $41.6 Series E Prefe
Slide 12: Chartis Results
Chartis Results 12
Slide 13: Chartis: Operating Income
Chartis: Operating Income Chartis reported $789 million operating income in the quarter. Operating income was adversely impacted by $539 million of catastrophe losses. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change Net premiums written $9,167 $7,792 17.6% 18,333 15,436 18
Slide 14: Chartis: Premiums
Chartis: Premiums Premiums increased 17.6% over the prior year period largely driven by the consolidation of Fuji. Excluding Fuji and the impact of FX, Chartis premiums increased 2.4%. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change Chartis U.S. NPW $4,957 $4,738 4.6% $9,0
Slide 15: Chartis: Investments
Chartis: Investments Chartis net investment income increased 2.6% driven by the consolidation of Fuji and improved interest and dividends. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change Interest and dividend $946 $850 11.3% 1,809 1,695 6.7% Partnership income 161 220 (26.
Slide 16: SunAmerica Financial Group Results
SunAmerica Financial Group Results 16
Slide 17: SunAmerica: Operating Income
SunAmerica: Operating Income SunAmerica reported operating income of $0.7 billion in the second quarter of 2011. Assets under management grew 9.0%. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change Premiums, deposits and other considerations $6,144 $4,968 23.7% $12,370 $9,70
Slide 18: SunAmerica: Premiums, Deposits and Other Considerations
SunAmerica: Premiums, Deposits and Other Considerations SAFG PDOC increased 23.7% driven primarily by fixed and variable annuity sales. Retail life insurance sales increased 16.1%. SAFG had positive net flows of $726 million. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change
Slide 19: SunAmerica: Investments
SunAmerica: Investments SAFG second quarter net investment income declined 6.4% over the prior period primarily driven by a lower fair market valuation of Maiden Lane II investment. Second Quarter Year-to-Date ($ millions) 2011 2010 Change 2011 2010 Change 1 Interest and dividends $2,275 $2,181 4.3%
Slide 20: SunAmerica: Net Investment Spreads
SunAmerica: Net Investment Spreads 2Q10 to 2Q11 Change in Net Spreads VALIC Western National 3.00% 3.00% 1.98% 1.85% 2.50% 2.50% 0.30% 0.22% 1.88% 0.14% 2.00% 0.14% 2.00% 0.25% 1.52% 1.50% (0.01%) (0.45%) 1.50% (1.02%) 1.00% 1.00% 0.50% 0.50% 0.00% 0.00% 6 Months 2010 to 6 Months 2011 Change in Net
Slide 21: Tax
Tax 21
Slide 22: Group Deferred Tax Asset Overview
Group Deferred Tax Asset Overview AIG has substantial tax attribute carry forwards that are available under U.S. tax law to offset future U.S. federal income tax obligations. As of 12/31/10 Origin / Gross Deferred ($ in billions) Type Source Attributes Tax Asset Utilization / Limitations • AIG FP •
Slide 23: Effective Tax Rate
Effective Tax Rate Q2 2011 effective tax rate from continuing operations – (15.9%) – Lower than 35% primarily due to tax exempt income, investments in partnerships, effective settlements of uncertain tax positions, and a decrease in the valuation allowance attributable to the anticipated inclusion o
Slide 24: Q&A
Q&A 24
American International Group — Q2 2011 Earnings Presentation on 6ix