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

Share this Post:
Posted by IRL Staff


ad ad

Related articles

Patrick Rastiello joins Ardonagh Specialty to lead North America Reinsurance expansion

Ardonagh Specialty has appointed Patrick Rastiello as CEO* of its North American reinsurance operations.   Patrick will be responsible for building Ardonagh Specialty’s US reinsurance...

Global Markets Overview: February 2024

In this Global Markets Overview, we explore our global outlook and share what we think it means for 2024. As...


Risk Management Trailblazer Presented with RIMS Highest Honor for Lifetime Achievement in Risk Management  NEW YORK (February 13, 2024) – At the RIMS New Zealand and Pacific Island...

Insurer’s Lease More Than Doubles Its Chicago Office Space

Sompo International Plans Move to 46-Story Tower at 155 N. Wacker A global specialty insurance provider is more than doubling the size of its Chicago office in a move a few blocks north, bucking the trend...

Haynes and Boone, LLP is pleased to announce that Peter A. Halprin has joined the firm as a Partner

Haynes and Boone, LLP is pleased to welcome Insurance Recovery Partner Peter A. Halprin to the firm’s New York City office. A Chambers USA-ranked attorney, Peter joins from Pasich LLP, where...

LIO Specialty Launches Revolutionary Online Portal for Life Science Insurance Solutions

Leading the Excess and Surplus Lines Market with Innovative Coverage for Cannabis and Nutraceutical Industries  West Conshohocken, PA– LIO Specialty Insurance Company proudly announces the launch...