AIG Reports Third Quarter 2020 Results


NEW YORK, November 5, 2020 – American International Group, Inc. (NYSE: AIG) today reported financial results for the quarter ended September 30, 2020.

Brian Duperreault, AIG’s Chief Executive Officer, said: “We are pleased to report AIG’s solid third quarter results as we embark on an important phase of our journey to become a top performing company. In General Insurance, the accident year combined ratio, as adjusted, improved for the ninth consecutive quarter, and the high frequency of natural catastrophes and COVID-19 had a limited impact on financial results. Life and Retirement’s results continue to demonstrate that it is a market-leading franchise, with a strong improvement in adjusted pre-tax income from last year. Our recent leadership transition and corporate structure announcements marked an important milestone for AIG made possible by the significant foundational work our colleagues have successfully executed on over the last three years.”

  • Announced Intention to Separate the Life and Retirement Business from AIG to Establish Two Independent Market Leading Companies and Unlock Significant Value to Shareholders and Other Stakeholders

  • Continued Improvement in General Insurance; Limited Impact from Catastrophe Losses (CATs)

  • Life and Retirement Adjusted Pre-tax Income (APTI) of $975 million; Modest Impact from the Annual Actuarial Assumption Update

  • Strong Balance Sheet and Financial Flexibility; $73.86 of Book Value per Common Share, an increase of 3.0% from June 30, 2020

  • Net income attributable to AIG common shareholders was $281 million, or $0.32 per diluted common share, for the third quarter of 2020 compared to $648 million or $0.72 per diluted common share, in the prior year quarter.

  • Adjusted after-tax income attributable to AIG common shareholders* was $709 million, or $0.81 per diluted common share, for the third quarter of 2020 compared to $505 million, or $0.56 per diluted common share, in the prior year quarter.

  • General Insurance reported $790 million of pre-tax CATs, net of reinsurance, or 13.5 combined ratio points, resulting in a General Insurance combined ratio of 107.2 compared to 103.7 in the prior year quarter.

  • The General Insurance accident year combined ratio, as adjusted*, was 93.3, a 2.6 point improvement from the prior year quarter, benefiting from the actions taken to improve underwriting performance.

  • Life and Retirement APTI increased 51% to $975 million compared to the prior year quarter, reflecting strong equity market performance, favorable short-term impacts from lower interest rates and tighter spreads, and lower general operating expenses (GOE), partially offset by base spread compression and unfavorable impacts from COVID-19 mortality. Adjusted return on attributed common equity (Adjusted ROCE) for Life and Retirement* for the third quarter was 14.5%.

  • Total consolidated net investment income was $3.8 billion compared to $3.4 billion in the prior year quarter. Net investment income on an APTI basis* of $3.2 billion decreased approximately $277 million, primarily as a result of the sale of Fortitude Group Holdings LLC (Fortitude) on June 2, 2020.

  • On October 26, 2020 AIG announced its intention to separate its Life and Retirement business from AIG.

    * Refers to financial measure not calculated in accordance with generally accepted accounting principles (non- GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Comment on Regulation G and Non-GAAP Financial Measures.

Full financials > HERE

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Posted by IRL Staff



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