- Net income attributable to AIG common shareholders was
$1.7 billion, or $1.98per diluted common share, for the first quarter of 2020, compared to $654 million, or $0.75per diluted common share, in the prior year quarter, primarily driven by $3.5 billionof pre-tax net realized capital gains, compared to $446 millionof pre-tax net realized capital losses in the prior year quarter.
- Adjusted after-tax income attributable to AIG common shareholders* was
$99 million, or $0.11per diluted common share, for the first quarter of 2020, compared to $1.4 billion, or $1.58per diluted common share, in the prior year quarter. General Insuranceposted 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 Insurancehad $419 millionof pre-tax catastrophe losses (CATs), net of reinsurance, in the first quarter. This included $272 millionof 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 billioncompared to $3.9 billionin the prior year quarter. Net investment income on an adjusted pre-tax income basis decreased approximately $1.0 billionto $2.7 billion, reflecting lower alternative investment returns and losses on fair value option (FVO) securities.
- Book value per common share was
$69.30at 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.
* 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.
Adjusted after-tax income attributable to AIG common shareholders was
“It has been heartbreaking to watch this humanitarian crisis unfold over the last few months. At the same time, the courage, compassion and empathy that have emerged, particularly from first responders, health care providers and others on the front lines, has been heartwarming. AIG is committed to assisting with relief efforts across the globe and will be making an inaugural
“AIG was in a strong financial position before this crisis began and remains in a strong financial position today. While we believe COVID-19 will be the single largest CAT loss the industry has ever seen, the significant body of work our team has undertaken since late 2017 has served us well as we navigate through this evolving situation. AIG is well-positioned to emerge as a global insurer of choice with significant financial flexibility.
“In the first quarter of 2020, our core businesses delivered strong results building on the momentum we had coming into the year. In
“The COVID-19 crisis has created significant uncertainty, and it will take time to understand its broader ramifications. In light of this, AIG is withdrawing previously issued guidance, including that relating to Adjusted Return on Common Equity. However, we do expect to see continued improvement in
“While the new normal COVID-19 will create for each of us is still unknown, I am confident that AIG will continue to move forward on its journey to become a top performing company and leading insurance franchise.”