American International Group, Inc. New · NYSE:AIG

American International Group, Inc. New — American International Group — Q3 2021 Earnings Presentation

27 slides from American International Group, Inc. New's earnings presentation, Nov 5, 2021

  1. Slide 1: Third Quarter 2021 Financial Results Presentation

    Third Quarter 2021 Financial Results Presentation November 5, 2021 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.

  2. 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 American International Group, Inc. (AIG) may from time to time make and discuss, projections, goals, assumptions and statements that may constitute “forward-looking state

  3. Slide 3: 3Q21 results reflect continuous improvement in General Insurance

    3Q21 results reflect 3Q21  Adjusted after-tax income attributable to AIG common shareholders (AATI)* was $837M, or $0.97 per diluted common share, compared to $708M, or $0.81 per diluted common share, in 3Q20 Financial continuous improvement Results  Net income attributable to AIG common sharehold

  4. Slide 4: APTI of $1.1B improved, due to 2.8 points of improvement in AYCR

    APTI of $1.1B improved, due to ($M, except per common share amounts) 3Q20 3Q21 Variances 2.8 points of improvement in Adjusted Pre-tax Income (Loss): AYCR, as adjusted and General Insurance $416 $811 $395 continued strong Life and Life and Retirement 1 1,008 877 (131) Retirement results Other Operat

  5. Slide 5: 3Q20 and 3Q21 noteworthy items

    3Q20 and 3Q21 noteworthy items 3Q20 3Q21 After- EPS – After- EPS – ($M, except per share amounts) Pre-tax Pre-tax tax1 diluted2 tax1 diluted2 CATs excluding General Insurance COVID-193 $618 $488 $0.56 $646 $510 $0.59 General Insurance COVID-19 CATs 185 146 0.17 - - - Reinstatement premiums related t

  6. Slide 6: Gross investment income, APTI basis, increased $49M or 1%

    Gross investment income (GII), Invested Assets & Gross Investment Income, APTI Basis APTI basis*, increased $49M General Insurance Life and Retirement Other Operations Gross Investment Income, APTI basis ($M) Total AIG or 1% $3,333 $231 $10 $3,382 $194 $454 $616 $2,412 $2,478 $113 $84 $230 $308 Inte

  7. Slide 7: General Insurance: Global Commercial Lines NPW grew 17%

    General Insurance: Global ($M) 3Q20 3Q21 General Insurance Net Premiums Written ($M) Global Commercial Lines Global Personal Insurance Commercial Lines NPW grew Net premiums written Net premiums earned $5,924 $5,853 $6,590 $6,423 $4,647 17%; AYCR, as adjusted Loss and loss adjustment expense 4,367 4

  8. Slide 8: General Insurance: North America NPW growth of 17%

    General Insurance: North ($M) 3Q20 3Q21 North America Net Premiums Written ($M) America NPW growth of 17% Net premiums written Commercial Lines $2,571 2,186 $3,005 2,576 $3,005 along with 5.7 points of AYCR, Personal Insurance 385 429 $2,571 $429 as adjusted improvement $385 Net premiums earned $2,4

  9. Slide 9: General Insurance: Strong International Commercial Lines NPW growth of 15%

    General Insurance: Strong ($M) 3Q20 3Q21 International Net Premiums Written ($M) International Commercial Net premiums written Commercial Lines $3,353 1,795 $3,585 2,071 $3,353 $3,585 Lines NPW growth of 15% Personal Insurance 1,558 1,514 $1,514 along with 2.1 points of Net premiums earned Commercia

  10. Slide 10: Life and Retirement: Favorable net investment income and fee income

    Life and Retirement: Favorable Adjusted Pre-tax Income (APTI) ($M) Noteworthy Items ($M) net investment income and fee $1,008 3Q20 3Q21 Variance income, more than offset by $106 $32 $877 $135 Annual actuarial assumption updates ($107) ($166) ($59) unfavorable impact from $338 $134 Return on alternat

  11. Slide 11: Life and Retirement: Third consecutive quarter of net inflows in Individual Retirement

    Life and Retirement: Third Individual Retirement 3Q21 vs 3Q20 APTI reflects consecutive quarter of net Premiums and Deposits2 ($M) Net Flows2 ($M) Assets Under Administration ($B) APTI2 ($M) Favorable impacts from:  Higher call and tender income and commercial inflows in Individual $3,257 (+21% vs.

  12. Slide 12: Life and Retirement: Life Insurance had favorable impact from annual actuarial assumption update

    Life and Retirement: Life Life Insurance 3Q21 vs 3Q20 APTI reflects Insurance had favorable New Business Sales ($M) Premiums and Deposits APTI ($M) Favorable impacts from:  Year-over-year change for annual actuarial impact from annual actuarial $111 (+16% vs. 3Q20) $1,152 (+7% vs. 3Q20) $134 n.m. a

  13. Slide 13: Life and Retirement: 3Q21 actuarial assumption update

    Life and Retirement: 3Q21 actuarial assumption update  Individual Retirement primarily reflects DAC true-up arising from Annual Actuarial Assumption Review ($M) 3Q21 portfolio spread projections on our fixed annuity blocks of business Individual Retirement ($270)  Group Retirement mainly reflects

  14. Slide 14: Other Operations: APTL increased due in-part to consolidated investment entities

    Other Operations: APTL increased due in-part to the impact of consolidated investment entities ($M) 3Q20 3Q21  Other Operations APTL was $562M in 3Q21, including $192M of reductions from consolidation and eliminations, compared to APTL of $508M, including $140M of reductions from consolidation Corp

  15. Slide 15: Financial flexibility remains strong with reduced debt and $5.3B of Parent liquidity

    Financial flexibility remains $93.2 Capital Structure ($B) Risk Based Capital (RBC) Ratios4 strong with reduced debt and $1.6 $88.3 1.6 Hybrids1 Period Life and Retirement Companies General Insurance Companies $5.3B of Parent liquidity at $24.4 $21.0 Financial Debt 1,2 Year-end September 30, 2021 $8

  16. Slide 16: 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 Insurance 2 Transform Japan business into a next-generat

  17. Slide 17: Appendix

    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.

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: Non-GAAP Reconciliations - Adjusted Pre-tax and After-tax Income

    Non-GAAP Reconciliations- (in millions) 3Q20 Quarterly 3Q21 Adjusted Pre-tax and Pre-tax income from continuing operations Adjustments to arrive at Adjusted pre-tax income $ 368 $ 2,176 After-tax Income - Changes in fair value of securities used to hedge guaranteed living benefits Changes in benefit

  22. Slide 22: Non-GAAP Reconciliations - Adjusted Pre-tax and After-tax Income

    Non-GAAP Reconciliations- (in millions) 3Q20 Quarterly 3Q21 Adjusted Pre-tax and After-tax net income, including noncontrolling interests Noncontrolling interests income Net income attributable to AIG $ $ 299 $ (11) 288 $ 1,737 (70) 1,667 After-tax Income - Dividends on preferred stock Net income at

  23. Slide 23: Non-GAAP Reconciliations - Book Value Per Common Share and Return on Common Equity

    Non-GAAP Book Value Per Common Share Reconciliations- Book Value Per Common (in millions, except per common share data) Book Value Per Common Share As of September 30, 2020 2021 December 31, 2020 (in millions, except per common share data) Tangible Book Value Per Common Share Total AIG common shareh

  24. Slide 24: Non-GAAP Reconciliations - Accident Year Loss Ratio and Combined Ratio

    Non-GAAP General Insurance General Insurance - North America Reconciliations- Loss ratio 2Q18 65.7 Quarterly 3Q20 74.6 3Q21 68.4 3Q20 Quarterly 3Q21 Accident Year Loss Ratio, Loss ratio 88.3 79.4 Catastrophe losses and reinstatement premiums (2.3) (13.5) (9.7) Catastrophe losses and reinstatement pr

  25. Slide 25: Non-GAAP Reconciliations - Accident Year Loss Ratio and Combined Ratio

    Non-GAAP General Insurance - International General Insurance - International - Reconciliations- 3Q20 Quarterly 3Q21 Commercial Lines 3Q20 Quarterly 3Q21 Accident Year Loss Ratio, Loss ratio Catastrophe losses and reinstatement premiums 64.5 (6.4) 59.3 (5.1) Loss ratio Catastrophe losses and reinstat

  26. Slide 26: Non-GAAP Reconciliations - Net Premiums Written and Net Investment Income

    Non-GAAP Reconciliations- Net Premiums Written – Change in Constant Dollar Net Premiums Written – North America - International - International - Global - Change in Constant Dollar General Commercial Commercial Personal Commercial General Insurance Insurance Lines International Lines Insurance Lines

  27. Slide 27: Non-GAAP Reconciliations - Premiums

    Non-GAAP Reconciliations- (in millions) Quarterly Nine Months Ended September 30, Premiums Individual Retirement: 3Q20 3Q21 2020 2021 Premiums $ 35 $ 66 $ 114 $ 123 Deposits 2,670 3,190 7,508 10,488 Other (3) 1 (10) (3) Premiums and deposits $ 2,702 $ 3,257 $ 7,612 $ 10,608 Individual Retirement (Fi

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