American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q3 2013 Earnings Presentation
18 slides from American International Group, Inc. New's earnings presentation, Nov 1, 2013
Slide 1: Third Quarter 2013 Results Conference Call Presentation
American International Group, Inc. Third Quarter 2013 Results Conference Call Presentation November 1, 2013
Slide 2: Cautionary Statement Regarding Projections and Other Information About Future Events
Cautionary Statement Regarding Projections and Other Information About Future Events 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, projections, goals, assumptions and s
Slide 3: Third Quarter 2013 Key Themes
Third Quarter 2013 Key Themes Highlights: Noteworthy Items $1.9 billion of insurance company dividends ($4.6 billion in dividends and loan repayments YTD) Capital Management Issued $1 billion of 3.375% 7-year senior notes; redeemed $500 million principal amount of senior notes due 2014 & Liquidi
Slide 4: Financial Highlights
Financial Highlights Third Quarter Inc. ($ in millions, except per share amounts) 2012 2013 (Dec.) Revenues $16,722 $14,826 (11%) Net income attributable to AIG 1,856 2,170 17% After-tax operating income attributable to AIG $1,621 $1,421 (12%) Diluted earnings per common share: Income from continuin
Slide 5: After-tax Operating Income
After-tax Operating Income 3Q13 results reflect strong growth in insurance operating earnings. Third Quarter ($ in millions, except per share amounts) 2012 2013 Insurance operations AIG Property Casualty $786 $1,044 AIG Life and Retirement 826 1,144 Mortgage Guaranty (reported in Other) 3 43 Total I
Slide 6: Strong Capital Position
Strong Capital Position Capital Structure Book Value Per Share ($ in billions, except per share data) $70.0 $66.38 $67.10 $124.1 $120.7 $0.7 $4.42 $0.7 $8.51 $16.1 $15.3 $60.0 Non-redeemable $9.4 $6.0 noncontrolling $50.0 interests (1) Financial Debt $40.0 AOCI $30.0 $62.68 $98.0 $98.8 $57.87 BVPS,
Slide 7: Financial Flexibility – A Source of Strength
Financial Flexibility – A Source of Strength Parent Cash, Short-Term Investments & Insurance Company Distributions Unencumbered Securities ($ in millions) ($ in billions) $12.6 $12.7 $2,400 YTD 2013 - $4,619 $11.0 $1,933 $3.0 $1,800 $2.9 $1,349 Unencumbered $1,342 $1,337 Fixed Maturity $1,217 $1,200
Slide 8: AIG Property Casualty – Financial Results
AIG Property Casualty – Financial Results Operating results demonstrate continued execution of strategic initiatives. ($ in millions) 3Q12 3Q13 Global Combined Ratios Calendar Year Accident Year, Net premiums written $8,712 $8,660 as adjusted(1) 120 105.0 101.6 100.1 98.0 Net premiums earned 8,752 8
Slide 9: Commercial Insurance – Underwriting Results
Commercial Insurance – Underwriting Results Commercial Insurance results reflect business mix shift, enhanced risk selection, and price increases. Net Premiums Written ($ in millions) $6,000 $5,099 $5,222 Commercial Insurance continued to focus on growing higher $968 $1,050 value, profitable lines
Slide 10: Consumer Insurance – Underwriting Results
Consumer Insurance – Underwriting Results Consumer Insurance continues to implement global growth strategies across multiple distribution channels. Net Premiums Written ($ in millions) Consumer NPW grew 4% from 3Q12 excluding foreign $4,000 $3,630 $3,441 exchange and the excess of loss reinsurance
Slide 11: AIG Property Casualty – Investments
AIG Property Casualty – Investments Net investment income: Third Quarter ($ in millions) 2012 2013 Inc./(Dec.) Interest and dividends $ 1,000 $ 975 (3%) Alternative investments 87 69 (21%) (1) Other, net 140 135 (4%) Net investment income $ 1,227 $ 1,179 (4%) Yield 3.88% 3.76% Total Cash & Invested
Slide 12: Mortgage Guaranty – Growing Profitability
Mortgage Guaranty – Growing Profitability New business increasingly drives operating results. New Insurance Written ($ in millions) 3Q12 3Q13 ($ in billions) $16 $14.4 Net premiums written $219 $272 $12 $10.7 Net premiums earned 177 204 $8 $5.7 Underwriting income (loss) (35) 11 $4 Net investment in
Slide 13: AIG Life and Retirement – Financial Results
AIG Life and Retirement – Financial Results Strong sales and growth in pre-tax operating income. ($ in millions) 3Q12 3Q13 Strong 3Q13 operating results were driven by solid growth in fee income, effective spread management, and Premiums and deposits $4,785 $8,422 the favorable impact of a review
Slide 14: AIG Life and Retirement – Retail & Institutional Results
AIG Life and Retirement – Retail & Institutional Results Retail Pre-Tax Operating Income(1) Institutional Pre-Tax Operating Income(2) ($ in millions) ($ in millions) $900 $846 $400 $132 $298 $300 $278 $600 $548 $13 $75 $144 $200 $586 $300 $265 $260 $220 $100 $135 $107 $0 $0 3Q12 3Q13 3Q12 3Q13 Life
Slide 15: AIG Life and Retirement – Investments
AIG Life and Retirement – Investments Net investment income: Third Quarter ($ in millions) 2012 2013 Inc./(Dec.) Interest and dividends $ 2,342 $ 2,256 (4%) Alternative investments 170 137 (19%) Call and tender income 72 34 (53%) (1) Other, net 13 40 208% Net investment income $ 2,597 $ 2,467 (5%) (
Slide 16: AIG Life and Retirement – Base Yields and Spreads
AIG Life and Retirement – Base Yields and Spreads Base Yields(1) 5.50% 5.38% 5.33% 5.35% 5.30% 5.26% 5.30% 5.25% 5.12% 5.12% 5.10% 5.17% 5.10% 5.14% 5.08% 4.90% 5.01% 4.95% 4.70% 4.85% 3Q12 4Q12 1Q13 2Q13 3Q13 Cost of Funds(2) 3.40% 3.26% 3.26% 3.10% 3.06% 3.08% 3.20% 3.00% 3.15% 3.14% 2.80% 2.91% 2
Slide 17: Q&A
AIG Q&A
Slide 18: Bring on tomorrow
AIG Bring on tomorrow
American International Group — Q3 2013 Earnings Presentation on 6ix