General Insurance adjusted pre-tax income (APTI) increased 4% compared to the prior year quarter reflecting continued improvement and growth in Commercial Lines...
- Life and Retirement APTI increased 20% compared to the prior year quarter supported by diverse products and distribution strength
- Strong net investment income driven by improved alternative investment returns during the quarter
- Strong balance sheet and lower leverage; Board of Directors declares dividends
Fourth Quarter Noteworthy Items
General Insurance APTI increased 4% to $809 million compared to the prior year quarter due to higher net investment income offset by higher catastrophe losses, net of reinsurance (CATs). General Insurance reported $545 million of CATs which included $178 million, or 3.0 combined ratio points, of COVID-19 CATs resulting in a General Insurance combined ratio of 102.8 compared to 99.8 in the prior year quarter.
- The General Insurance accident year combined ratio, as adjusted*, of 92.9 improved for the tenth consecutive quarter with a 2.9 point improvement from the prior year quarter.
- Life and Retirement APTI increased 20% to $1,027 million compared to the prior year quarter driven by strong net investment income and improved APTI in most operating segments. Return on adjusted segment common equity – Life and Retirement* for the fourth quarter was 16.4%, on an annualized basis.
- Net loss attributable to AIG common shareholders was $60 million, or $0.07 per common share, compared to net income of $922 million, or $1.03 per diluted common share, in the prior year quarter.
- Adjusted after-tax income attributable to AIG common shareholders* (AATI) was $827 million, or $0.94 per diluted common share, compared to $923 million, or $1.03 per diluted common share, in the prior year quarter.
- As of December 31, 2020, book value per common share was $76.46, an increase of 3.5% compared to September 30, 2020. Adjusted book value per common share* was $57.01, an increase of 0.4% compared to September 30, 2020.
- Return on Common Equity (ROCE) and Adjusted ROCE* were (0.4)% and 6.7%, respectively, on an annualized basis, for the fourth quarter of 2020.
- The Board of Directors declared a quarterly cash dividend of $0.32 per share on AIG common stock and $365.625 per share on AIG preferred stock.
* 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.
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