American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Investor Presentation (August 2013)
41 slides from American International Group, Inc. New's investor presentation, Aug 13, 2013
Slide 1: American International Group, Inc. Investor Presentation
Exhibit 99.1 American International Group, Inc. Investor Presentation August 13, 2013
Slide 2: Cautionary Statement Regarding Projections and Forward-looking Statements
Cautionary American Securities nature, “target” materially, the and important recognition Risk Part obligation) otherwise. with Circular or matters written specific applicable I,Regulation Factors Item are addressed; by, 230 insurer; to International Litigation This inherently from to Statement 1A.
Slide 3: AIG Key Strategies and Accomplishments
AIG growth as Maintain consistent pricing economies adjusted, – An Property 2012 (ex. spread Established earnings are FX trending New Casualty those and management insurance 0.8 Reinsurance) within down Global bn ? Capitalize 1.4 approximately Central written(2) Insurance through bn in inEurope, qua
Slide 4: AIG Building Capital Strength and Liquidity
2013 AIG $49.0 4bn(2) intended as holding Assets Company –debt PC Strong AIG Building company) U.S.: Note: for calls Life the Action Liquidity 443% Data and on purpose and Capital tenders Retirement Level. as (ACL) assets of ? Additional ofJune 2) Strength ranking of –and Other AIG $2.9 30, $37.7 li
Slide 5: AIG Property Casualty
AIG Property Casualty ~h AIG
Slide 6: AIG Property Casualty – A Truly Global Franchise
AIG4Property organization with $10 $115 established million b Americas in average Casualty Europe, and 2012 growing claims –NPW: with A Truly paid established position $17.6 Global each bnin business 51% and Franchise Latin growing ofAmerica(2) total dayAIGin NPW positions 2012 Property ? 1) 45,000
Slide 7: AIG Property Casualty – Financial Highlights
AIG Property Operating Shareholders’ expense, AIG’s Excludes September legal catastrophe income Casualty equity, settlements 2008 (loss)(1) excluding losses –liquidity Financial related (1.1) andAOCI related crisis 1.2 toHighlights “legacy 1.8 and 40.8 reinstatement 2.7legal 44.3 Cash crisis Full fe
Slide 8: AIG Property Casualty – Business Overview
AIG Property multinational Strength – U.S. clients Casualty fleet ?adjusted Innovative – Business statutory –Overview Often capital firstAIG of to $24 market Property billion in new Casualty at year-end products offers 2012 and a broad services, 8 product suchplatform. as CyberEdge Commercial ? Maxi
Slide 9: AIG Property Casualty – Strategic Initiatives
AIG Property growth Expand Leverage segmentation capital intensive with d capital it t?lkit and Casualty Globalize product maintenance Initiative anti-fraud –?lines Strategic Global leading driven products g architecture Claims to Focus byclaims data and Strategic ? Simplify analytics t cost gith9 g
Slide 10: AIG Property Casualty – Strong Recognition and Awards
AIG Property 90% PropertyCasualty360 Business Customer (as of Awards Satisfaction 6/1/2013) Casualty 20132013 SAS Award Service – Strong 2012 Best British Excellence Overall Enterprise Brands Insurance Commercial and Celent Excellence Customer Awards Model Insurance Award Loyalty 2013 Insurer Underw
Slide 11: AIG Property Casualty – Product Diversification
AIG Property Management Aerospace Employment? Environmental Practices Property Casualty??–Industrial, Cyber Product ? Political Security Diversification Energy Risk ? Kidnap and ? Trade Commercial Commercial and Credit Ransom ? Property Marine Insurance (e.g., ?identity ?D&O, Global Consumer E&O the
Slide 12: AIG Property Casualty – Growth Economies in Asia Pacific and Other Regions
AIG Property America Bancassurance Pacific Casualty agreement and Asia – Growth Pacific, with HSBCEconomies excluding in Turkey Japan Growth 12?1) #1 economies Ranking foreign property asaccounted of December casualty for 11% 31, insurance 2012, of NPWasorganization measured in 2012, increased byinn
Slide 13: AIG Property Casualty – Investment Composition
AIG Composition RMBS 13 1)Property Includes 10% Loans Bond Casualty intercompany 1% Portfolio—102.1 Cash – Investment and invested shortterm billion—by Composition assetsinvestments that are Agency &eliminated Ratings 5%Credit AAA T tin Rating lAA Pconsolidation. tf22% liACBBB iti 30%B BB dP States,
Slide 14: AIG Life and Retirement
AIG Life and Retirement “| AIG
Slide 15: AIG Life and Retirement – Market Leader
AIG Life Capacity 532% Simplified capital ranking(CAL) ofany for and $21 legal insurance Growth supports Retirement billion structure ?atcompany sales Comprehensive year-end –enhances Operating growth(1) or 2012 for capital from use 15 Multi-channel portfolio 1) in efficiencies, aThe connection Posi
Slide 16: AIG Life and Retirement – Financial Highlights
AIG10.7 9.9 equity, excluding interest eliminated Life excluding expense), 5.5 and the inOperating consolidation. Retirement following AOCI net realized income(2) 30.0 items – Financial 29.5 capital from 4.1 31.6 net (gains) Highlights 3.3 33.2 income 4.216 losses, 2.51) (loss): Full Cash Premiums a
Slide 17: AIG Life and Retirement – Diversified Business Mix
AIG Group B premiums changes and included fitSIA Life Institutional Retirement in related in and and fair theRetirement deposits values Institutional toMarkets net 34%of realized on Fixed fixed –13% annuity Diversified operating Life maturity capital Retirement contracts, Insurance (gains) segment,
Slide 18: AIG Life and Retirement – Assets Under Management
AIG Life and Retirement Management—$293.7 billion – Assets at June Under 30, Management 2013 equity market Year-over-year performance growth andinInstitutional AUM reflectsbusiness strongasset salesgathering generatedstrategies. by our realigned 18 distribution system, it k t f d I tit ti l b i t th
Slide 19: AIG Life and Retirement – Powerful Market Positions
AIG MarCom th #1 Innovators rankings Platinum Ranking Liferepresent Awards and #6 for and Retirement inAnnuity Awards Variable 2012 1Q13Gold Client (23 LIMRA Annuity – Powerful in Market total) Quarterly rankings Sales Positions Insurance Brands Magazine Statements and #2 & Market in Financial 2012
Slide 20: AIG Life and Retirement – Broad Multichannel Distribution
AIG Life AGLA Independent agents andmarketing Retirement Advisor Group organizations – Broad Affiliated Multichannel Brokers VALIC4%FAs Distribution Benefit 33% AIG Brokers Network Direct 20 % Affiliated: Broker dealers 43% Non-affiliated: Banks 13% Banks57%-affiliated 2012 SalesAdvisor by Channel G
Slide 21: AIG Life and Retirement – Variable Annuities Market Share
2010 Prudential 6MetLife increasing market AIG June Morningstar Morningstar, which 4,561 Life L&R 30, FY contain share 4.9% 42013, 2009 and 2,105 is their Financial VA further thereby Inc. 9Retirement benefits Rank 64% 3,212 share Sales 9.4% andof positioned 2Sales improving from 3.1% can report. 3,
Slide 22: AIG Life and Retirement – Investment Composition
AIG Life Rating subdivisions consolidation. 2013 andbillion 2% Retirement U SRMBS Corporate – CMBS Investment debt4% 54% CDO/ABS Composition 10% 4%5%AAA &BB Ratings 12% 12%AA 5% Total 10% 4%Cash A Other 24% & Invested invested U.S. Governments Assets assets 6% as ofLoans 1% June Non-U.S. Cash 30,—$1
Slide 23: AIG Life and Retirement – Net Investment Spread
AIGinvestment 9% 3Q12 the and 5.01% universal Life 4Q12and 4.95% 1Q13 life Retirement return account 4.85% 2Q13 on 2.13% surplus 5.14% –values Net 2.18% Investment 1Q12 other are at2Q12 than 1.97% contractual alternative Spread 3Q12 1.98%4Q12 minimum Management 2.19% investment 1Q13 1.91% guaranteed
Slide 24: Mortgage Guaranty (United Guaranty Corporation)
Mortgage Guaranty (United Guaranty Corporation) 24
Slide 25: United Guaranty – Market Leader
United $8.0 over maintaining insurance First-lien $12.0 a dozen Guaranty only. written 2010 consistently variables 760 ––Aoriginal 90 Market to2011 high evaluate principal Leader 757 quality 91 loan Risk 2012 balance risk riskbased in758 and force. of91 price pricing loans nce ? Operating the (First
Slide 26: United Guaranty – Shrinking Legacy In-Force
United 5% 3/31/10 domestic that Radian 2013 have Guaranty Guaranty, 6/30/10 18% RIF missed at16% 9/30/10 June 12 –Incorporated Shrinking 20% or30, more 12/31/10 2006 2013, payments Legacy 7% and the3/31/11 10% highest Genworth In-Force declined 12%6/30/11 among 14% Mortgage Pto iD16% 9/30/11 45% pee
Slide 27: United Guaranty – Capital Strength
United 20% and reflect date Moody’s of UGRIC increasing Guaranty this presentation. Genworth rating –contribution Financial of Baa1 MGIC 2) Peers’ with Strength from Radian stable risk new Risk to Unaffiliated outlooks(1). business. capital to Capital ratios ?Bonds At ?Asset UGRIC’s are March those
Slide 28: Capital Strength
Capital Strength AIG
Slide 29: Capital Position, Leverage and Ratings
Capital billions, A+ Leverage Dec. preferred companies. A1 31,APosition except 2011 A stock. Ratios: $98.0 Dec. per 2) and 2012 $97.5 All share 31, Ratings ratings 2013 2012 Ddata) 31$66.02 Outstanding June Jhave $124.1 30 30, Hybrids stable $53.53 2013 $119.2 outlooks, borrowings Common BVPS, $50.1
Slide 30: Financial Flexibility – Parent Cash and Liquidity
Financial Cash, $792 Parent Investment of June $1,444 Short-Term cash, 30,Flexibility 2013. book short-term $1,894 and Investments $8.1 –Global Ainvestments Source Fixed Capital &Maturity ofInsurance Strength and Markets unencumbered Securities Company Parent as of June liquidity Cash Distributions
Slide 31: Other Sources of Value
Other Sources of Value “| AIG
Slide 32: Direct Investment Book and Corporate Assets
Direct Assets Corporate generated riskreward held hedging liabilities directly Investment &activity Liabilities can and through Arbitrage novated by be operating AIG for met Book realization to the AIG $4 Parent asAIG $12 assets they results and Hedging Life $8 in Global come of and the $24 of and i
Slide 33: Direct Investment Book and MIP Notes Maturities
Direct $3.5 MIP notes $3.5 Investment $3.5 payable 5.0 Book $4.5 Series $4.1 Long-Term AIGFP $3.9 matched $0.6 Debt $0.5Maturities notes $8.3 and $3 8bonds ($ 26% in billions) 35% payable 20% $19 GIAs, 30% 4 80% at 40%fair 80% $5value $10 $25Notes $6.6 90%$5.6 $5.8 and $4.4 bonds $5.6$0.4 $5 payable
Slide 34: Deferred Tax Assets Overview
Deferred presented Life FTC’s Expiration Tax Assets & ?Life 2025–2031 Tax on Foreign $18.3 $45.2 aAsset U.S. $16. $15.8 Tax Overview GAAP Expiration Credits $39.5 basis. AIG $13.8 Capital General Ashas of ? Use substantial Loss 12/31/11 $4.2against Carryforward $4.7As ?tax AIG Limited ofattribute 12
Slide 35: Appendix
Appendix AIG
Slide 36: AIG Consolidated Financial Highlights
AIG Consolidated (11%) $0.13 After-tax $0.08 After-tax operating (38%) operating Financial After-tax income(1) income Highlights operating 9.9%attributable 8.4% income Six36Months 1)to attributable Computed AIG($$4,724 millions to as $3,637 AIG Annualized 2012 $2.60 (23%) 2013 $2.46 After-tax Inc. D
Slide 37: Non-GAAP Reconciliation
Non-GAAP losses Operations to 2,674 Net Property (losses)—516 hedging net losses realized $on2,545 (Casualty sale gains) on Legal Reconciliation sale of $— capital 114 losses divested 516 settlements—Changes of Life $divested Loss gains (4) and ——Operating businesses $ on Retirement –5,329 (losses)—
Slide 38: Non-GAAP Reconciliation
Non-GAAP Casualty (332) from in 327fair 1,201 continuing ——Gain value ($1,211 in Reconciliation ofmillions) securities on Net operations, sale realized of Full designated properties –before Year capital Full co Year tax to (gains) e(669) o$& hedge co $Six $——Legal tlosses $uMonths living AIG g ope 1
Slide 39: Non-GAAP Reconciliation
Non-GAAP (243) valuation SIA (13)—After-tax related (126) allowance to Net Reconciliation net losses operating realized releases on sale income capital – (1,576) After-tax of divested gains attributable (1,538) operating 336 businesses 889 Changes to Loss AIG income 2$4,724 on in31fair extinguishmen
Slide 40: Non-GAAP Reconciliation
Non-GAAP 97,463 Value value 2013 (580) reinstatement 65.2 108.6 Accident 62.6 AIG per (541) 100.0 Per Accumulated year common Accident Common Life (632) Reconciliation Catastrophe premiums combined and(315) share Year Retirement Share—Ex. other Premiums Combined (ratio, losses $3.3) 53.53 comprehens
Slide 41: AIG Bring on tomorrow
AIG Bring on tomorrow
American International Group — Investor Presentation (August 2013) on 6ix