American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Presentation (February 2016)
9 slides from American International Group, Inc. New's investor presentation, Feb 2, 2016
Slide 1: American International Group, February 1st, 2016
February 1st, 2016 AMERICAN INTERNATIONAL GROUP Exhibit 99.2
Slide 2: Oliver Wyman report terms and limitations
This report was prepared pursuant to the terms of Oliver Wyman’s engagement by AIG pursuant to the Statement of Work entered into by Oliver Wyman and AIG (the “SOW”) and is prepared in the form consistent therewith. This report is intended to be read and used as a whole and not in parts. Separation
Slide 3: Summary of select relevant standards
Summary of select relevant standards Background AIG Inc. and its subsidiaries operate under several external capital regimes including state and sovereign regulators as well as rating agencies Standard & Poor’s (S&P) Ratings use a combination of qualitative and quantitative information Capital adequ
Slide 4: Capital return constrained by ratings and regulatory capital requirements
AIG Inc.’s ability to return capital to shareholders is governed, among other factors, by two constraints: Maintaining credit ratings Meeting regulatory capital requirements Under both constraints, cross P&C / Life diversification benefits, which are only available with AIG remaining a multiline bus
Slide 5: Diversification categories and S&P model methodology
Diversification category Description Applicable to Within P&C Reduction in risk due to the diversity of products & risk types within business lines (e.g., the offsetting effect of longevity and mortality risks) AIG Inc. AIG business units as standalone entities Within Life Within Investments2 Across
Slide 6: Diversification benefits calculated by latest S&P consolidated model for AIG
Risk factor / business line diversification type Gross diversification benefits ($BN)1 Net diversification benefits of maintaining status quo ($BN) Status quo Post splitting of business Within P&C 2.2 2.2 0 Within Life 0.4 0.4 0 Within Investments 2.5 2.54 0 Life vs. P&C 4.1 - 4.1 Business line dive
Slide 7: Appendix
APPENDIX
Slide 8: Diversification benefits: other ratings agencies
Diversification benefits: other ratings agencies “A breakup of AIG and loss of SIFI status (assuming this were the effect) would be credit negative for the company, removing the diversification benefit of the multiline insurance operations…” – Moody’s The top-down analysis includes the exposure to r
Slide 9: ICS intra-life insurance risk correlation matrix
Risk Non-life Catast-rophe Life Market Credit Non-life 100% 25% 0% 25% 25% Catast-rophe 25% 100% 25% 25% 25% Life 0% 25% 100% 25% 25% Market 25% 25% 25% 100% 25% Credit 25% 25% 25% 25% 100% ICS proposal recognizes diversification at multiple levels including within risk types including: Life and Non
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