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AIG Reports First Quarter 2020 Results

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Topics: Financial Results

Brian Duperreault, AIG’s Chief Executive Officer, said: “In the face of COVID-19, an unprecedented global catastrophe, our colleagues have shown great resilience and remain focused on what we do best, which is helping our clients manage risk, especially in difficult times...

  • Net income attributable to AIG common shareholders was $1.7 billion, or $1.98 per diluted common share, for the first quarter of 2020, compared to $654 million, or $0.75 per diluted common share, in the prior year quarter, primarily driven by $3.5 billion of pre-tax net realized capital gains, compared to $446 million of pre-tax net realized capital losses in the prior year quarter.
  • Adjusted after-tax income attributable to AIG common shareholders* was $99 million, or $0.11 per diluted common share, for the first quarter of 2020, compared to $1.4 billion, or $1.58 per diluted common share, in the prior year quarter.
  • General Insurance posted a combined ratio of 101.5 compared to 97.4 in the prior year quarter. The accident year combined ratio, as adjusted*, was 95.5, compared to 96.1 in the prior year quarter, reflecting a better portfolio mix due to disciplined underwriting and continued expense management.
  • General Insurance had $419 million of pre-tax catastrophe losses (CATs), net of reinsurance, in the first quarter. This included $272 million of estimated COVID-19 losses related to Travel, Contingency, Commercial Property, Trade Credit, Workers’ Compensation and Validus Re. The remainder of the CATs were primarily weather-related.
  • Life and Retirement reported adjusted pre-tax income of $574 million, primarily due to declines in equity markets and widening spreads in credit markets triggered by the ongoing COVID-19 crisis.
  • Total consolidated net investment income was $2.5 billion compared to $3.9 billion in the prior year quarter. Net investment income on an adjusted pre-tax income basis decreased approximately $1.0 billion to $2.7 billion, reflecting lower alternative investment returns and losses on fair value option (FVO) securities.
  • Book value per common share was $69.30 at March 31, 2020, a decrease of 8% compared to December 31, 2019. Book value per common share, excluding accumulated other comprehensive income (AOCI) and deferred tax assets (DTA) (Adjusted book value per common share)* was $60.55, an increase of 3% compared to December 31, 2019.
  • Return on Common Equity (ROCE) and Return on Common Equity, excluding AOCI and DTA (Adjusted ROCE)* were 11.2% and 0.8%, respectively, for the three months ended March 31, 2020.

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