AIG Reviews Third Quarter 2019 Outcomes

0
201

Web earnings attributable to AIG widespread shareholders was $648 million, or $zero.72 per diluted widespread share, for the third quarter of 2019, in comparison with a internet loss attributable to AIG widespread shareholders of $1.three billion, or $1.41 per widespread share, within the prior-year quarter.
Adjusted after-tax earnings attributable to AIG widespread shareholders* was $505 million, or $zero.56 per diluted widespread share, for the third quarter of 2019, in comparison with an adjusted after-tax loss attributable to AIG widespread shareholders of $301 million, or $zero.34 per widespread share, within the prior-year quarter.
Common Insurance coverage posted a mixed ratio of 103.7 and an accident yr mixed ratio, as adjusted*, of 95.9, improved in comparison with 124.four and 99.four, respectively, within the prior-year quarter, pushed by decrease disaster losses, continued underwriting actions, reinsurance and expense self-discipline.
Life and Retirement reported adjusted pre-tax earnings of $646 million in comparison with $713 million within the prior-year quarter, which included a cost for the annual actuarial assumption replace in every quarter.
Complete consolidated internet funding earnings was $three.four billion within the third quarter of 2019, primarily flat to the prior-year quarter, reflecting larger curiosity and dividends and different funding earnings partially offset by decrease various funding returns.
Web pre-tax disaster losses of $511 million ($404 million after-tax or $zero.45 per diluted share) in comparison with $1.6 billion ($1.three billion after-tax or $1.45 per share) within the prior-year quarter.
Web favorable prior yr loss reserve growth, internet of reinsurance, of $four million in comparison with internet unfavorable prior yr loss reserve growth, internet of reinsurance, of $170 million within the prior-year quarter.
Annual actuarial assumption replace cost of $173 million in comparison with $103 million within the prior-year quarter.

NEW YORK–(BUSINESS WIRE)– American Worldwide Group, Inc. (NYSE: AIG) right this moment reported internet earnings attributable to AIG widespread shareholders of $648 million, or $zero.72 per diluted widespread share, for the third quarter of 2019, in comparison with a internet loss attributable to AIG widespread shareholders of $1.three billion, or $1.41 per widespread share, within the prior-year quarter. The advance was primarily on account of pre-tax internet realized capital positive factors of $929 million in comparison with pre-tax internet realized capital losses of $511 million within the prior-year quarter and a discount in pre-tax internet disaster losses of $1.1 billion in comparison with the prior-year quarter. Adjusted after-tax earnings attributable to AIG widespread shareholders was $505 million, or $zero.56 per diluted widespread share, for the third quarter of 2019, in comparison with an adjusted after-tax loss attributable to AIG widespread shareholders of $301 million, or $zero.34 per widespread share, within the prior-year quarter. The advance was primarily on account of decrease disaster losses in comparison with the prior-year quarter.

Brian Duperreault, AIG’s President and Chief Government Officer, mentioned: “Our outcomes this quarter mirror the numerous, ongoing work throughout the corporate to put a basis for long-term, sustainable and worthwhile progress. Outcomes are in step with our expectations, significantly in Common Insurance coverage, which demonstrated a big enchancment over the prior-year quarter pushed by our give attention to underwriting excellence, expense self-discipline and enhanced reinsurance technique. Life and Retirement continued to supply strong outcomes regardless of ongoing headwinds from the sustained low rate of interest setting. This enterprise stays on observe to ship double-digit returns for the complete yr.

“As we method 2020, we stay assured we are going to ship underwriting profitability for the complete yr 2019 and ship double-digit ROCE by the top of 2021. We nonetheless have a lot work forward of us, however we’re nicely on our technique to positioning AIG as a number one world insurance coverage firm,” Mr. Duperreault added.

THIRD QUARTER FINANCIAL SUMMARY*

Three Months Ended

September 30,

($ in tens of millions, besides per widespread share quantities)

2019

2018

Web earnings (loss) attributable to AIG widespread shareholders

$

648

$

(1,259

)

Web earnings (loss) per diluted share attributable to AIG widespread shareholders (a)

$

zero.72

$

(1.41

)

Weighted common widespread shares excellent – diluted (a)

895.eight

895.2

Adjusted pre-tax earnings (loss):

Common Insurance coverage

$

507

$

(825

)

Life and Retirement

646

713

Different Operations

(500

)

(388

)

Legacy

93

84

Complete

$

746

$

(416

)

Adjusted after-tax earnings (loss) attributable to AIG widespread shareholders

$

505

$

(301

)

Adjusted after-tax earnings (loss) per diluted share attributable to AIG widespread shareholders (a)

$

zero.56

$

(zero.34

)

Return on widespread fairness

four.zero

%

(eight.four

)

%

Adjusted return on widespread fairness*

four.1

%

(2.four

)

%

Adjusted return on attributed widespread fairness – Core*

four.four

%

(three.6

)

%

Frequent shares excellent

869.9

884.6

Guide worth per widespread share

$

74.85

$

66.23

Guide worth per widespread share, excluding gathered different complete earnings*

68.40

66.83

Adjusted ebook worth per widespread share*

57.60

55.58

(a) For intervals reporting a loss, primary common widespread shares excellent are used to calculate internet earnings (loss) per diluted share
attributable to AIG widespread shareholders. Diluted shares signify primary shares for the three-month interval ended September 30, 2018
as a result of internet losses in that interval.

All comparisons are in opposition to the third quarter of 2018, except in any other case indicated. Check with the AIG Third Quarter 2019 Monetary Complement, which is posted on AIG’s web site within the Buyers part, for additional data.

THIRD QUARTER 2019 HIGHLIGHTS

Common Insurance coverage – Third quarter adjusted pre-tax earnings of $507 million was comprised of internet funding earnings of $756 million and an underwriting lack of $249 million. The underwriting loss was pushed by internet pre-tax disaster losses of $497 million, together with $254 million for Hurricane Faxai and $135 million for Hurricane Dorian, and resulted in a mixed ratio of 103.7 inclusive of seven.5 factors of disaster losses internet of reinstatement premiums. Web favorable prior yr loss reserve growth totaled $three million. The accident yr mixed ratio, as adjusted, was 95.9, comprised of a 61.5 accident yr loss ratio, as adjusted*, an enchancment of 210 foundation factors from the prior-year quarter, and an expense ratio of 34.four, an enchancment of 140 foundation factors from the prior-year quarter. The lower in accident yr loss ratio, as adjusted, was as a result of favorable impression from our underwriting actions, modifications in enterprise combine, robust outcomes from Glatfelter, improved loss efficiency throughout quite a few strains, and modifications in reinsurance. The discount within the third quarter expense ratio primarily mirrored enchancment within the Common working expense (GOE) ratio because of continued expense self-discipline.

Life and Retirement – Third quarter adjusted pre-tax earnings of $646 million included the impression of the annual actuarial assumption replace, which was a cost of $143 million within the third quarter of 2019 in comparison with $98 million within the prior-year quarter and elevated mortality in Life Insurance coverage. Web flows whereas unfavorable, improved ensuing from larger Fastened and Index Annuities new enterprise, in addition to decrease Group Retirement surrenders and withdrawals. Life and Retirement’s Adjusted return on widespread fairness (Adjusted ROCE)* for the third quarter of 2019 was 10.1% or roughly 12.5% excluding the impression of the annual actuarial assumption replace.

Web Funding Earnings – Third quarter internet funding earnings elevated zero.four% to $three.four billion with an eight% improve in curiosity, dividends and different funding earnings, barely offset by decrease various funding earnings, which declined to $115 million in comparison with $329 million within the prior-year quarter. Annualized yield for various funding earnings was 5% and 13% for the third quarter and 9 months ended September 30, 2019, respectively, barely under AIG’s eight% annualized assumption for the quarter however larger for the 9 months ended September 30, 2019.

Different Operations – Third quarter adjusted pre-tax lack of $500 million elevated from $388 million within the prior-year quarter primarily on account of elevated company GOE and better curiosity expense partly on account of consolidated non-recourse debt and World Actual Property investments.

Legacy Outcomes – Third quarter adjusted pre-tax earnings of $93 million elevated 11% primarily on account of decrease disaster losses in Legacy Common Insurance coverage of $14 million in comparison with $57 million within the prior-year quarter, partially offset by decrease Legacy Life and Retirement earnings on account of decrease internet funding earnings and the cost for the annual actuarial assumption replace of $30 million in comparison with $5 million within the prior-year quarter.

Guide Worth per Frequent Share – As of September 30, 2019, ebook worth per widespread share was $74.85 in comparison with $65.04 at December 31, 2018 principally on account of a rise in gathered different complete earnings (AOCI) because of the impression of decrease rates of interest on the honest worth of mounted maturities. Guide worth per widespread share excluding AOCI and DTA (Adjusted ebook worth per widespread share) elevated 5% to $57.60 in comparison with the prior-year finish on account of progress in retained earnings from $2.four billion of internet earnings attributable to AIG within the 9 months ended September 30, 2019.

Return on Frequent Fairness (ROCE) – ROCE for the third quarter and the 9 months ended September 30, 2019 was four.zero% and 5.2%, respectively, an enchancment from (eight.four)% and 1.three%, within the prior-year quarter and the 9 months ended September 30, 2018, respectively, on account of larger internet earnings attributable to AIG widespread shareholders. Adjusted ROCE for the third quarter and 9 months ended September 30, 2019 was four.1% and eight.6%, respectively, an enchancment from (2.four)% and four.three%, within the prior-year quarter and prior-year nine-month interval, respectively, on account of larger adjusted after-tax earnings attributable to AIG widespread shareholders.

Liquidity and Capital – As of September 30, 2019, AIG Mum or dad liquidity stood at roughly $7.2 billion. Within the third quarter, AIG Mum or dad acquired roughly $1.6 billion of distributions from the insurance coverage subsidiaries within the type of money, mounted maturity securities and mortgage repayments together with tax sharing funds.

GENERAL INSURANCE

Three Months Ended September 30,

($ in tens of millions)

2019

2018

Change

Complete Common Insurance coverage

Gross premiums written

$

eight,583

$

eight,668

(1

)

%

Web premiums written

$

6,648

$

6,835

(three

)

Underwriting loss

$

(249

)

$

(1,726

)

86

Adjusted pre-tax earnings (loss)

$

507

$

(825

)

NM

Underwriting ratios:

Loss ratio

69.three

88.6

(19.three

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(7.5

)

(22.zero

)

14.5

Prior yr growth

(2.7

)

2.7

Changes for ceded premium underneath reinsurance

contracts and different

(zero.three

)

(zero.three

)

zero.zero

Accident yr loss ratio, as adjusted

61.5

63.6

(2.1

)

Expense ratio

34.four

35.eight

(1.four

)

Mixed ratio

103.7

124.four

(20.7

)

Accident yr mixed ratio, as adjusted

95.9

99.four

(three.5

)

Common Insurance coverage – North America

Three Months Ended September 30,

($ in tens of millions)

2019

2018

Change

North America

Web premiums written

$

three,404

$

three,164

eight

%

Industrial Strains

2,502

2,229

12

Private Insurance coverage

902

935

(four

)

Underwriting loss

$

(185

)

$

(987

)

81

Industrial Strains

(123

)

(609

)

80

Private Insurance coverage

(62

)

(378

)

84

Adjusted pre-tax earnings (loss)

$

435

$

(160

)

NM

Underwriting ratios:

North America

Loss ratio

76.7

98.eight

(22.1

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(7.1

)

(23.7

)

16.6

Prior yr growth

zero.5

(four.eight

)

5.three

Changes for ceded premium underneath reinsurance

contracts and different

(zero.6

)

(zero.5

)

(zero.1

)

Accident yr loss ratio, as adjusted

69.5

69.eight

(zero.three

)

Expense ratio

29.zero

31.1

(2.1

)

Mixed ratio

105.7

129.9

(24.2

)

Accident yr mixed ratio, as adjusted

98.5

100.9

(2.four

)

North America Industrial Strains

Loss ratio

80.9

98.5

(17.6

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(6.four

)

(21.6

)

15.2

Prior yr growth

1.6

(zero.6

)

2.2

Changes for ceded premium underneath reinsurance

contracts and different

(zero.eight

)

(zero.7

)

(zero.1

)

Accident yr loss ratio, as adjusted

75.three

75.6

(zero.three

)

Expense ratio

24.1

26.6

(2.5

)

Mixed ratio

105.zero

125.1

(20.1

)

Accident yr mixed ratio, as adjusted

99.four

102.2

(2.eight

)

North America Private Insurance coverage

Loss ratio

64.2

99.eight

(35.6

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(9.zero

)

(29.7

)

20.7

Prior yr growth

(three.zero

)

(16.9

)

13.9

Changes for ceded premium underneath reinsurance

contract

(zero.1

)

(zero.1

)

Accident yr loss ratio, as adjusted

52.1

53.2

(1.1

)

Expense ratio

43.four

43.three

zero.1

Mixed ratio

107.6

143.1

(35.5

)

Accident yr mixed ratio, as adjusted

95.5

96.5

(1.zero

)

Common Insurance coverage North America – Commentary

Web premiums written elevated by eight% to $three.four billion, largely as a result of acquisition of Glatfelter and progress inside the Validus enterprise, partially offset by the continued impression of pricing and underwriting actions, and better ceded premiums on account of modifications in 2019 reinsurance applications.
Pre-tax underwriting lack of $185 million included $230 million of disaster losses, internet of reinsurance, of which $156 million have been in North America Industrial Strains and $74 million in North America Private Insurance coverage. Web favorable prior yr loss reserve growth of $17 million was comprised of internet favorable prior yr loss reserve growth of $42 million in North America Industrial Strains partially offset by internet unfavorable prior yr loss reserve growth in North America Private Insurance coverage of $25 million.
The North America mixed ratio of 105.7 included 7.1 factors of disaster losses internet of reinstatement premiums and (zero.5) factors of internet favorable prior yr loss reserve growth. The accident yr mixed ratio, as adjusted, was 98.5, comprised of a 69.5 accident yr loss ratio, as adjusted, and a 29.zero expense ratio. The zero.three factors enchancment within the accident yr loss ratio, as adjusted, was primarily pushed by an bettering enterprise combine because of underwriting actions and the Glatfelter acquisition, improved efficiency in Property and modifications in 2019 reinsurance applications, partially offset by larger losses for Crop and Specialty.
The two.1 factors lower within the expense ratio was largely pushed by 2.5 factors discount in GOE ratio ensuing from continued expense self-discipline, partially offset by a zero.four factors improve within the acquisition ratio on account of modifications in enterprise combine.

Common Insurance coverage – Worldwide

Three Months Ended September 30,

($ in tens of millions)

2019

2018

Change

Worldwide

Web premiums written

$

three,244

$

three,671

(12

)

%

Industrial Strains

1,528

1,810

(16

)

Private Insurance coverage

1,716

1,861

(eight

)

Underwriting earnings (loss)

$

(64

)

$

(739

)

91

Industrial Strains

(65

)

(423

)

85

Private Insurance coverage

1

(316

)

NM

Adjusted pre-tax earnings (loss)

$

72

$

(665

)

NM

Underwriting ratios:

Worldwide

Loss ratio

62.three

79.7

(17.four

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(eight.zero

)

(20.5

)

12.5

Prior yr growth

(zero.four

)

(1.zero

)

zero.6

Accident yr loss ratio, as adjusted

53.9

58.2

(four.three

)

Expense ratio

39.5

39.9

(zero.four

)

Mixed ratio

101.eight

119.6

(17.eight

)

Accident yr mixed ratio, as adjusted

93.four

98.1

(four.7

)

Worldwide Industrial Strains

Loss ratio

67.9

87.6

(19.7

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(eight.zero

)

(20.6

)

12.6

Prior yr growth

(2.1

)

(three.6

)

1.5

Accident yr loss ratio, as adjusted

57.eight

63.four

(5.6

)

Expense ratio

36.2

35.6

zero.6

Mixed ratio

104.1

123.2

(19.1

)

Accident yr mixed ratio, as adjusted

94.zero

99.zero

(5.zero

)

Worldwide Private Insurance coverage

Loss ratio

57.four

72.four

(15.zero

)

pts

Much less: impression on loss ratio

Disaster losses and reinstatement premiums

(eight.zero

)

(20.5

)

12.5

Prior yr growth

1.1

1.5

(zero.four

)

Accident yr loss ratio, as adjusted

50.5

53.four

(2.9

)

Expense ratio

42.5

43.eight

(1.three

)

Mixed ratio

99.9

116.2

(16.three

)

Accident yr mixed ratio, as adjusted

93.zero

97.2

(four.2

)

Common Insurance coverage Worldwide – Commentary

Web premiums written decreased 12% on a reported foundation as a result of continued impression of pricing and underwriting actions, change in reinsurance and the impression of international change. Web premiums written decreased 11% on a continuing greenback foundation.
Pre-tax underwriting lack of $64 million included $267 million of disaster losses, internet of reinsurance, of which $124 million associated to Worldwide Industrial Strains and $143 million associated to Worldwide Private Insurance coverage. Web unfavorable prior yr loss reserve growth was $14 million, with $34 million of internet unfavorable prior yr loss reserve growth in Worldwide Industrial Strains, partially offset by $20 million of internet favorable prior yr loss reserve growth in Worldwide Private Insurance coverage.
The Worldwide mixed ratio was 101.eight, down from 119.6 within the prior-year quarter on account of decrease disaster losses. The accident yr mixed ratio, as adjusted, of 93.four was comprised of a 53.9 accident yr loss ratio, as adjusted, and a 39.5 expense ratio, and was down four.7 factors from the prior-year quarter on account of four.three factors lower within the accident yr loss ratio, as adjusted. The decrease accident yr loss ratio, as adjusted, was primarily pushed by a change in enterprise combine and improved Industrial Property and Japan Private Auto outcomes.
The expense ratio decreased zero.four factors primarily on account of a discount within the GOE ratio, because of continued expense self-discipline, partially offset by a zero.three factors improve within the acquisition ratio primarily on account of modifications in enterprise combine.

LIFE AND RETIREMENT

Three Months Ended September 30,

($ in tens of millions)

2019

2018

Change

Life and Retirement

Premiums & Charges

$

1,529

$

943

62

%

Web Funding Earnings

2,078

1,960

6

Adjusted Income

three,833

three,146

22

Advantages, losses and bills

three,187

2,433

31

Adjusted pre-tax earnings

646

713

(9

)

Premiums and deposits

7,461

6,779

10

Particular person Retirement

Premiums & Charges

$

242

$

213

14

%

Web Funding Earnings

1,zero21

956

7

Adjusted Income

1,416

1,335

6

Advantages, losses and bills

1,zero29

942

9

Adjusted pre-tax earnings

387

393

(2

)

Premiums and deposits

three,692

three,616

2

Web flows

(330

)

(545

)

39

Three Months Ended September 30,

($ in tens of millions)

2019

2018

Change

Group Retirement

Premiums & Charges

$

116

$

124

(6

)

%

Web Funding Earnings

544

531

2

Adjusted Income

726

718

1

Advantages, losses and bills

523

476

10

Adjusted pre-tax earnings

203

242

(16

)

Premiums and deposits

1,924

2,116

(9

)

Web flows

(788

)

(986

)

20

Life Insurance coverage

Premiums & Charges

$

742

$

520

43

%

Web Funding Earnings

289

275

5

Adjusted Income

1,zero37

809

28

Advantages, losses and bills

1,zero44

793

32

Adjusted pre-tax earnings (loss)

(7

)

16

NM

Premiums and deposits

1,012

978

three

Institutional Markets

Premiums & Charges

$

429

$

86

399

%

Web Funding Earnings

224

198

13

Adjusted Income

654

284

130

Advantages, losses and bills

591

222

166

Adjusted pre-tax earnings

63

62

2

Premiums and deposits

833

69

NM

Life and Retirement – Commentary

Life and Retirement reported adjusted pre-tax earnings of $646 million in comparison with $713 million within the prior-year quarter. The present quarter included a $143 million cost for the annual actuarial assumption replace in comparison with a $98 million cost for the annual actuarial assumption replace within the prior-year quarter. Excluding the impacts from the annual actuarial assumption replace from each intervals, adjusted pre-tax earnings declined three% on account of elevated mortality and decrease various funding returns when in comparison with the prior-year quarter.
Particular person Retirement reported adjusted pre-tax earnings of $387 million in comparison with $393 million within the prior-year quarter. The present quarter included a cost for the annual actuarial assumption replace of $63 million in comparison with a $52 million cost for the annual actuarial assumption replace within the prior-year quarter. Adjusted pre-tax earnings improved, excluding the actuarial assumption replace, because of larger base portfolio earnings which was largely the results of elevated gross sales, partially offset by decrease returns on various investments in comparison with the prior-year quarter. Complete internet flows excluding Retail Mutual Funds have been constructive pushed by robust Index Annuities gross sales.
Group Retirement reported adjusted pre-tax earnings of $203 million in comparison with $242 million within the prior-year quarter. The present quarter mirrored a cost for the annual actuarial assumption replace of $17 million in comparison with internet favorable changes of $17 million for the annual actuarial assumption replace within the prior-year quarter. Adjusted pre-tax earnings declined, excluding the annual actuarial assumption replace, on account of decrease returns on various investments and extra investments made within the working platform in comparison with the prior-year quarter, partially offset by larger earnings on securities for which the honest worth choice was elected. Web flows stay unfavorable however favorable to the prior-year quarter primarily on account of decrease surrenders.
Life Insurance coverage reported adjusted pre-tax lack of $7 million in comparison with adjusted pre-tax earnings of $16 million within the prior-year quarter mirrored elevated mortality, partially offset by larger base earnings pushed by progress in invested belongings. The present yr and prior yr quarters included a $63 million cost for the annual actuarial assumption replace. Mortality developments stay inside pricing expectations.
Institutional Markets adjusted pre-tax earnings elevated barely on account of larger internet funding earnings on a rising asset base ensuing from progress in Pension Threat Switch and Assured Funding Contracts (GICs).

* Refers to monetary measure not calculated in accordance with usually accepted accounting ideas (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures will be discovered on this information launch underneath the heading Touch upon Regulation G and Non-GAAP Monetary Measures.

CONFERENCE CALL

AIG will host a convention name right this moment, Friday, November 1, 2019 at 9:00 a.m. ET to overview these outcomes. The decision is open to the general public and will be accessed through a dwell listen-only webcast within the Buyers part of www.aig.com. A replay might be obtainable after the decision on the identical location.

Further supplementary monetary information is out there within the Buyers part at www.aig.com.

The convention name (together with the convention name presentation materials), the earnings launch and the monetary complement could embrace, and officers and representatives of AIG could every now and then make and talk about, projections, targets, assumptions and statements that will represent “forward-looking statements” inside the which means of the Personal Securities Litigation Reform Act of 1995. These projections, targets, assumptions and statements should not historic info however as an alternative signify solely a perception concerning future occasions, a lot of which, by their nature, are inherently unsure and out of doors AIG’s management. These projections, targets, assumptions and statements embrace statements preceded by, adopted by or together with phrases akin to “will,” “consider,” “anticipate,” “count on,” “intend,” “plan,” “centered on reaching,” “view,” “goal,” “aim” or “estimate.” These projections, targets, assumptions and statements could relate to future actions, potential companies or merchandise, future efficiency or outcomes of present and anticipated companies or merchandise, gross sales efforts, bills, the end result of contingencies akin to authorized proceedings, anticipated organizational, enterprise or regulatory modifications, anticipated gross sales, monetization and/or acquisitions of companies or belongings, or profitable integration of acquired companies, administration succession and retention plans, publicity to threat, developments in operations and monetary outcomes.

It’s attainable that AIG’s precise outcomes and monetary situation will differ, presumably materially, from the outcomes and monetary situation indicated in these projections, targets, assumptions and statements. Components that would trigger AIG’s precise outcomes to vary, presumably materially, from these within the particular projections, targets, assumptions and statements embrace:

modifications in market and business circumstances;
the incidence of catastrophic occasions, each pure and man-made;
AIG’s skill to efficiently reorganize its companies and execute on our initiatives to enhance our underwriting capabilities and reinsurance applications, in addition to enhance profitability, with out negatively impacting consumer relationships or its aggressive place;
AIG’s skill to efficiently get rid of, monetize and/or purchase companies or belongings or efficiently combine acquired companies;
modifications in judgments regarding potential price saving alternatives;
actions by credit standing businesses;
modifications in judgments regarding insurance coverage underwriting and insurance coverage liabilities;
the impression of potential data expertise, cybersecurity or information safety breaches, together with because of cyber-attacks or safety vulnerabilities;
disruptions within the availability of AIG’s digital information methods or these of third events;
the effectiveness of our methods to recruit and retain key personnel and our skill to implement efficient succession plans;
the necessities, which can change every now and then, of the worldwide regulatory framework to which AIG is topic;
unfavorable impacts on prospects, enterprise companions and different stakeholders;
AIG’s skill to efficiently handle Legacy portfolios;
important authorized, regulatory or governmental proceedings;
concentrations in AIG’s funding portfolios;
modifications in judgments in regards to the recognition of deferred tax belongings and goodwill impairment; and
such different components mentioned in Half I, Merchandise 2. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations (MD&A) in AIG’s Quarterly Report on Kind 10-Q for the quarterly interval ended September 30, 2019 (which might be filed with the Securities and Change Fee), Half I, Merchandise 2. MD&A in AIG’s Quarterly Report on Kind 10-Q for the quarterly interval ended June 30, 2019, Half I, Merchandise 2. MD&A in AIG’s Quarterly Report on Kind 10-Q for the quarterly interval ended March 31, 2019, and Half II, Merchandise 7. MD&A and Half I, Merchandise 1A. Threat Components in AIG’s Annual Report on Kind 10-Ok for the yr ended December 31, 2018.

AIG will not be underneath any obligation (and expressly disclaims any obligation) to replace or alter any projections, targets, assumptions or different statements, whether or not written or oral, which may be made every now and then, whether or not because of new data, future occasions or in any other case.

COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES

All through this press launch, together with the monetary highlights, AIG presents its monetary situation and outcomes of operations in the way in which it believes might be most significant and consultant of its enterprise outcomes. Among the measurements AIG makes use of are “non-GAAP monetary measures” underneath Securities and Change Fee guidelines and rules. GAAP is the acronym for “usually accepted accounting ideas” in the USA. The non-GAAP monetary measures AIG presents are listed under and will not be corresponding to similarly-named measures reported by different corporations. The reconciliations of such measures to probably the most comparable GAAP measures in accordance with Regulation G are included inside the related tables connected to this information launch or within the Third Quarter 2019 Monetary Complement obtainable within the Buyers part of AIG’s web site, www.aig.com.

Guide Worth per Frequent Share, Excluding Accrued Different Complete Earnings (AOCI) and Guide Worth per Frequent Share, Excluding AOCI and Deferred Tax Belongings (DTA) (Adjusted Guide Worth per Frequent Share) are used to point out the quantity of AIG’s internet price on a per-common share foundation. AIG believes these measures are helpful to buyers as a result of they eradicate gadgets that may fluctuate considerably from interval to interval, together with modifications in honest worth of AIG’s obtainable on the market securities portfolio, international forex translation changes and U.S. tax attribute deferred tax belongings. These measures additionally eradicate the asymmetrical impression ensuing from modifications in honest worth of AIG’s obtainable on the market securities portfolio whereby there’s largely no offsetting impression for sure associated insurance coverage liabilities. AIG excludes deferred tax belongings representing U.S. tax attributes associated to internet working loss carryforwards and international tax credit as they haven’t but been utilized. Quantities for interim intervals are estimates based mostly on projections of full-year attribute utilization. As internet working loss carryforwards and international tax credit are utilized, the portion of the DTA utilized is included in these ebook worth per widespread share metrics. Guide worth per widespread share, excluding AOCI, is derived by dividing Complete AIG widespread shareholders’ fairness, excluding AOCI, by whole widespread shares excellent. Adjusted Guide Worth per Frequent Share is derived by dividing Complete AIG widespread shareholders’ fairness, excluding AOCI and DTA (Adjusted Frequent Shareholders’ Fairness), by whole widespread shares excellent.

AIG Return on Frequent Fairness – Adjusted After-tax Earnings Excluding AOCI and DTA (Adjusted Return on Frequent Fairness) is used to point out the speed of return on widespread shareholders’ fairness. AIG believes this measure is beneficial to buyers as a result of it eliminates gadgets that may fluctuate considerably from interval to interval, together with modifications in honest worth of AIG’s obtainable on the market securities portfolio, international forex translation changes and U.S. tax attribute deferred tax belongings. This measure additionally eliminates the asymmetrical impression ensuing from modifications in honest worth of AIG’s obtainable on the market securities portfolio whereby there’s largely no offsetting impression for sure associated insurance coverage liabilities. AIG excludes deferred tax belongings representing U.S. tax attributes associated to internet working loss carryforwards and international tax credit as they haven’t but been utilized. Quantities for interim intervals are estimates based mostly on projections of full-year attribute utilization. As internet working loss carryforwards and international tax credit are utilized, the portion of the DTA utilized is included in Adjusted Return on Frequent Fairness. Adjusted Return on Frequent Fairness is derived by dividing precise or annualized adjusted after-tax earnings attributable to AIG widespread shareholders by common Adjusted Frequent Shareholders’ Fairness.

Core and Life and Retirement Adjusted Attributed Frequent Fairness is an attribution of whole AIG Adjusted Frequent Shareholders’ Fairness to those segments based mostly on AIG’s inside capital mannequin, which contains the segments’ respective threat profiles. Adjusted attributed widespread fairness represents AIG’s greatest estimates based mostly on present info and circumstances and can change over time.

Core and Life and Retirement Return on Frequent Fairness – Adjusted After-tax Earnings (Adjusted Return on Attributed Frequent Fairness) is used to point out the speed of return on Adjusted Attributed Frequent Fairness. Adjusted Return on Attributed Frequent Fairness is derived by dividing precise or annualized Adjusted After-tax Earnings by Common Adjusted Attributed Frequent Fairness.

Adjusted After-tax Earnings Attributable to Core and Life and Retirement is derived by subtracting attributed curiosity expense, earnings tax expense and attributed dividends on most well-liked inventory from adjusted pre-tax earnings. Attributed debt and the associated curiosity expense and dividends on most well-liked inventory are calculated based mostly on AIG’s inside capital mannequin. Tax expense or profit is calculated based mostly on an inside attribution methodology that considers amongst different issues the taxing jurisdiction through which the segments conduct enterprise, in addition to the deductibility of bills in these jurisdictions.

Adjusted Revenues exclude Web realized capital positive factors (losses), earnings from non-operating litigation settlements (included in Different earnings for GAAP functions) and modifications in honest worth of securities used to hedge assured residing advantages (included in Web funding earnings for GAAP functions). Adjusted revenues is a GAAP measure for AIG’s working segments.

AIG makes use of the next working efficiency measures as a result of AIG believes they improve the understanding of the underlying profitability of continuous operations and developments of AIG’s enterprise segments. AIG believes in addition they enable for extra significant comparisons with AIG’s insurance coverage rivals. When AIG makes use of these measures, reconciliations to probably the most comparable GAAP measure are supplied on a consolidated foundation.

Adjusted Pre-tax Earnings (APTI) is derived by excluding the gadgets set forth under from earnings from persevering with operations earlier than earnings tax. This definition is constant throughout AIG’s segments. This stuff usually fall into a number of of the next broad classes: legacy issues having no relevance to AIG’s present companies or working efficiency; changes to reinforce transparency to the underlying economics of transactions; and measures that AIG believes to be widespread to the business. APTI is a GAAP measure for AIG’s segments. Excluded gadgets embrace the next:

modifications in honest worth of securities used to hedge assured residing advantages;
modifications in profit reserves and deferred coverage acquisition prices (DAC), worth of enterprise acquired (VOBA), and gross sales inducement belongings (SIA) associated to internet realized capital positive factors and losses;
modifications within the honest worth of fairness securities;
loss (acquire) on extinguishment of debt;
all internet realized capital positive factors and losses besides earned earnings (periodic settlements and modifications in settlement accruals) on by-product devices used for non-qualifying (financial) hedging or for asset replication. Earned earnings on such financial hedges is reclassified from internet realized capital positive factors and losses to particular APTI line gadgets based mostly on the financial threat being hedged (e.g. internet funding earnings and curiosity credited to policyholder account balances);
earnings or loss from discontinued operations;
internet loss reserve low cost profit (cost);

pension expense associated to a one-time lump sum fee to former workers;
earnings and loss from divested companies;
non-operating litigation reserves and settlements;
restructuring and different prices associated to initiatives designed to scale back working bills, enhance effectivity and simplify AIG’s group;
the portion of favorable or unfavorable prior yr reserve growth for which AIG has ceded the danger underneath retroactive reinsurance agreements and associated modifications in amortization of the deferred acquire;
integration and transaction prices related to acquired companies;
losses from the impairment of goodwill; and
non-recurring exterior prices related to the implementation of non-ordinary course authorized or regulatory modifications or modifications to accounting ideas.

Adjusted After-tax Earnings attributable to AIG widespread shareholders (AATI) is derived by excluding the tax effected APTI changes described above, dividends on most well-liked inventory, and the next tax gadgets from internet earnings attributable to AIG:

deferred earnings tax valuation allowance releases and prices;
modifications in unsure tax positions and different tax gadgets associated to legacy issues having no relevance to AIG’s present companies or working efficiency; and
internet tax cost associated to the enactment of the Tax Cuts and Jobs Act (Tax Act);
and by excluding the online realized capital positive factors (losses) from noncontrolling pursuits.

See web page 17 for the reconciliation of Web earnings attributable to AIG to Adjusted After-tax Earnings Attributable to AIG.

Ratios: AIG, together with most property and casualty insurance coverage corporations, makes use of the loss ratio, the expense ratio and the mixed ratio as measures of underwriting efficiency. These ratios are relative measurements that describe, for each $100 of internet premiums earned, the quantity of losses and loss adjustment bills (which for Common Insurance coverage excludes internet loss reserve low cost), and the quantity of different underwriting bills that might be incurred. A mixed ratio of lower than 100 signifies underwriting earnings and a mixed ratio of over 100 signifies an underwriting loss. AIG’s ratios are calculated utilizing the related phase data calculated underneath GAAP, and thus will not be corresponding to comparable ratios calculated for regulatory reporting functions. The underwriting setting varies throughout international locations and merchandise, as does the diploma of litigation exercise, all of which have an effect on such ratios. As well as, funding returns, native taxes, price of capital, regulation, product kind and competitors can impact pricing and consequently on profitability as mirrored in underwriting earnings and related ratios.

Accident yr loss and mixed ratios, as adjusted: each the accident yr loss and mixed ratios, as adjusted, exclude disaster losses and associated reinstatement premiums, prior yr growth, internet of premium changes, and the impression of reserve discounting. Pure and man-made disaster losses are usually climate or seismic occasions having a internet impression on AIG in extra of $10 million every and likewise embrace sure man-made occasions, akin to terrorism and civil problems that exceed the $10 million threshold. AIG believes that as adjusted ratios are significant measures of AIG’s underwriting outcomes on an ongoing foundation as they exclude catastrophes and the impression of reserve discounting that are outdoors of administration’s management. AIG additionally excludes prior yr growth to offer transparency associated to present accident yr outcomes.

Underwriting ratios are computed as follows:

Loss ratio = Loss and loss adjustment bills incurred ÷ Web premiums earned (NPE)
Acquisition ratio = Complete acquisition bills ÷ NPE
Common working expense ratio = Common working bills ÷ NPE
Expense ratio = Acquisition ratio + Common working expense ratio
Mixed ratio = Loss ratio + Expense ratio
Accident yr loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes (CYRIPs) +/(-) RIPs related to prior year catastrophes (PYRIPs) + (Additional) returned premium related to PYD on loss sensitive business ((AP)RP) + Adjustment for ceded premiums under reinsurance contracts related to prior accident years] Accident yr mixed ratio, as adjusted = AYLR + Expense ratio
Disaster losses (CATs) and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) CYRIPs] – Loss ratio
Prior yr growth internet of (extra) return premium associated to PYD on loss delicate enterprise = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) CYRIPs +/(-) PYRIPs + (AP)RP] – Loss ratio – CAT ratio

Premiums and deposits: consists of direct and assumed quantities acquired and earned on conventional life insurance coverage insurance policies, group profit insurance policies and life‑contingent payout annuities, in addition to deposits acquired on common life, funding‑kind annuity contracts, Federal Dwelling Mortgage Financial institution (FHLB) funding agreements and mutual funds.

Outcomes from discontinued operations are excluded from all of those measures.

American Worldwide Group, Inc. (AIG) is a number one world insurance coverage group. Constructing on 100 years of expertise, right this moment AIG member corporations present a variety of property casualty insurance coverage, life insurance coverage, retirement options, and different monetary companies to prospects in additional than 80 international locations and jurisdictions. These various choices embrace services that assist companies and people defend their belongings, handle dangers and supply for retirement safety. AIG widespread inventory is listed on the New York Inventory Change.

Further details about AIG will be discovered at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/firm/aig. These references with extra details about AIG have been supplied as a comfort, and the data contained on such web sites will not be included by reference into this press launch.

AIG is the advertising identify for the worldwide property-casualty, life and retirement, and basic insurance coverage operations of American Worldwide Group, Inc. For added data, please go to our web site at www.aig.com. All services are written or supplied by subsidiaries or associates of American Worldwide Group, Inc. Services or products will not be obtainable in all international locations and jurisdictions, and protection is topic to underwriting necessities and precise coverage language. Non-insurance services could also be supplied by impartial third events. Sure property-casualty coverages could also be supplied by a surplus strains insurer. Surplus strains insurers don’t usually take part in state warranty funds, and insureds are due to this fact not protected by such funds.

American Worldwide Group, Inc.

Chosen Monetary Knowledge and Non-GAAP Reconciliation

($ in tens of millions, besides per widespread share information)

Reconciliations of Adjusted Pre-tax and After-tax Earnings

Three Months Ended September 30,

2019

2018

Noncontrolling

Noncontrolling

Pre-tax

Tax Impact

Pursuits(b)

After-tax

Pre-tax

Tax Impact

Pursuits

After-tax

Pre-tax earnings (loss)/internet earnings (loss), together with noncontrolling
pursuits

$

1,260

$

287

$

$

973

$

(1,527)

$

(307)

$

$

(1,259)

Noncontrolling pursuits

(317)

(317)

Pre-tax earnings (loss)/internet earnings (loss) attributable to AIG

1,260

287

(317)

656

(1,527)

(307)

(1,259)

Dividends on most well-liked inventory

eight

Web earnings (loss) attributable to AIG widespread shareholders

648

(1,259)

Changes:

Modifications in unsure tax positions and different tax changes

(eight)

eight

(54)

54

Deferred earnings tax valuation allowance (releases) prices

9

(9)

(5)

5

Modifications in honest worth of securities used to hedge

assured residing advantages

(12)

(2)

(10)

14

three

11

Modifications in profit reserves and DAC, VOBA and

SIA associated to internet realized capital positive factors (losses)

65

13

52

(76)

(16)

(60)

Modifications within the honest worth of fairness securities

51

11

40

Unfavorable (favorable) prior yr growth and associated

amortization modifications ceded underneath retroactive reinsurance
agreements

(59)

(13)

(46)

605

128

477

Loss on extinguishment of debt

1

1

Web realized capital (positive factors) losses(a)

(881)

(176)

(705)

524

127

397

Loss from discontinued operations

39

(Earnings) loss from divested companies

9

2

7

(2)

(1)

(1)

Non-operating litigation reserves and settlements

5

1

four

5

2

three

Web loss reserve low cost (profit) cost

235

50

185

(86)

(18)

(68)

Integration and transaction prices related to acquired companies

three

three

91

19

72

Restructuring and different prices

67

14

53

35

6

29

Skilled charges associated to regulatory or accounting modifications

three

1

2

Noncontrolling pursuits primarily associated to internet realized capital

positive factors (losses) of Fortitude Holdings’ standalone outcomes(b)

273

273

(1)

(1)

Adjusted pre-tax earnings (loss)/Adjusted after-tax earnings (loss)
attributable to AIG widespread shareholders

$

746

$

189

$

(44)

$

505

$

(416)

$

(116)

$

(1)

$

(301)

9 Months Ended September 30,

2019

2018

Noncontrolling

Noncontrolling

Pre-tax

Tax Impact

Pursuits(b)

After-tax

Pre-tax

Tax Impact

Pursuits

After-tax

Pre-tax earnings/internet earnings, together with noncontrolling pursuits

$

four,251

$

950

$

$

three,300

$

952

$

291

$

$

621

Noncontrolling pursuits

(881)

(881)

(5)

(5)

Pre-tax earnings/internet earnings attributable to AIG

four,251

950

(881)

2,419

952

291

(5)

616

Dividends on most well-liked inventory

15

Web earnings attributable to AIG widespread shareholders

2,404

616

Changes:

Modifications in unsure tax positions and different tax changes

(23)

23

(53)

53

Deferred earnings tax valuation allowance (releases) prices

40

(40)

(42)

42

Modifications in honest worth of securities used to hedge

assured residing advantages

(183)

(38)

(145)

127

27

100

Modifications in profit reserves and DAC, VOBA and

SIA associated to internet realized capital positive factors (losses)

39

eight

31

(46)

(10)

(36)

Modifications within the honest worth of fairness securities

(6)

(1)

(5)

Unfavorable (favorable) prior yr growth and associated

amortization modifications ceded underneath retroactive reinsurance
agreements

(211)

(45)

(166)

607

128

479

Loss on extinguishment of debt

13

three

10

10

2

eight

Web realized capital (positive factors) losses(a)

(758)

(153)

(605)

388

97

291

Loss from discontinued operations

1

40

(Earnings) loss from divested companies

four

1

three

(35)

(eight)

(27)

Non-operating litigation reserves and settlements

6

1

5

30

7

23

Web loss reserve low cost (profit) cost

920

194

726

(305)

(64)

(241)

Integration and transaction prices related to acquired companies

16

three

13

91

19

72

Restructuring and different prices

174

37

137

259

54

205

Skilled charges associated to regulatory or accounting modifications

5

1

four

Noncontrolling pursuits primarily associated to internet realized capital

positive factors (losses) of Fortitude Holdings’ standalone outcomes(b)

769

769

(2)

(2)

Adjusted pre-tax earnings/Adjusted after-tax earnings attributable to AIG
widespread shareholders

$

four,270

$

978

$

(112)

$

three,165

$

2,078

$

448

$

(7)

$

1,623

(a) Consists of all internet realized capital positive factors and losses besides earned earnings (periodic settlements and modifications in settlement accruals) on by-product devices used for non-qualifying (financial) hedging or for asset replication.

(b) Noncontrolling pursuits is primarily as a result of 19.9 % funding in Fortitude Group Holdings, LLC (Fortitude Holdings) by an affiliate of The Carlyle Group L.P. (Carlyle), which occurred within the fourth quarter of 2018. Carlyle is allotted 19.9 % of Fortitude Holdings’ standalone monetary outcomes. Fortitude Holdings’ outcomes are principally eradicated in AIG’s consolidated earnings from persevering with operations provided that its outcomes come up from intercompany transactions. Noncontrolling pursuits is calculated based mostly on the standalone monetary outcomes of Fortitude Holdings. Probably the most major factor of Fortitude Holdings’ standalone outcomes considerations positive factors associated to the change in honest worth of embedded derivatives, which moved materially within the quarter on account of decrease charges and tightening credit score spreads, and that are recorded in internet realized capital positive factors and losses of Fortitude Holdings. In accordance with AIG’s adjusted after-tax earnings definition, realized capital positive factors and losses are excluded from noncontrolling pursuits.

American Worldwide Group, Inc.

Chosen Monetary Knowledge and Non-GAAP Reconciliation (continued)

($ in tens of millions, besides per widespread share information)

Abstract of Key Monetary Metrics

Three Months Ended September 30,

9 Months Ended September 30,

% Inc.

% Inc.

2019

2018

(Dec.)

2019

2018

(Dec.)

Earnings (loss) per widespread share:

Fundamental

Earnings (loss) from persevering with operations

$

zero.74

$

(1.37

)

NM

%

$

2.74

$

zero.72

280.6

%

Loss from discontinued operations

(zero.04

)

NM

(zero.04

)

NM

Web earnings (loss) attributable to AIG widespread shareholders

$

zero.74

$

(1.41

)

NM

$

2.74

$

zero.68

302.9

Diluted

Earnings (loss) from persevering with operations

$

zero.72

$

(1.37

)

NM

$

2.71

$

zero.71

281.7

Loss from discontinued operations

(zero.04

)

NM

(zero.04

)

NM

Web earnings (loss) attributable to AIG widespread shareholders

$

zero.72

$

(1.41

)

NM

$

2.71

$

zero.67

304.5

Adjusted after-tax earnings (loss) attributable to AIG widespread

shareholders per diluted share

$

zero.56

$

(zero.34

)

NM

%

$

three.57

$

1.77

101.7

%

Weighted common shares excellent:

Fundamental

877.zero

895.2

876.three

902.1

Diluted (a)(b)

895.eight

895.2

887.2

916.eight

Return on widespread fairness (c)

four.zero

%

(eight.four

)

%

5.2

%

1.three

%

Adjusted return on widespread fairness (d)

four.1

%

(2.four

)

%

eight.6

%

four.three

%

As of interval finish:

September 30, 2019

June 30, 2019

December 31, 2018

September 30, 2018

Complete AIG shareholders’ fairness

$

65,603

$

64,539

$

56,361

$

58,586

Most popular fairness

485

485

Complete AIG widespread shareholders’ fairness

65,118

64,054

56,361

58,586

Accrued different complete earnings (AOCI)

5,615

four,991

(1,413

)

(536

)

Complete AIG widespread shareholders’ fairness, excluding AOCI

59,503

59,zero63

57,774

59,122

Deferred tax belongings (e)

9,393

9,577

10,153

9,953

Complete adjusted AIG widespread shareholders’ fairness

$

50,110

$

49,486

$

47,621

$

49,169

September 30,

June 30,

% Inc.

December 31,

% Inc.

September 30,

% Inc.

As of interval finish:

2019

2019

(Dec.)

2018

(Dec.)

2018

(Dec.)

Guide worth per widespread share (f)

$

74.85

$

73.63

1.7

%

$

65.04

15.1

%

$

66.23

13.zero

%

Guide worth per widespread share, excluding AOCI (g)

$

68.40

$

67.90

zero.7

$

66.67

2.6

$

66.83

2.three

Adjusted ebook worth per widespread share (h)

$

57.60

$

56.89

1.2

$

54.95

four.eight

$

55.58

three.6

Complete widespread shares excellent

869.9

869.9

866.6

884.6

Monetary highlights – notes

(a) For the three-month interval ended September 30, 2018, as a result of we reported internet losses and adjusted after-tax losses, all widespread inventory equivalents are anti-dilutive and are due to this fact excluded from the calculation of diluted shares and diluted per share quantities. The shares excluded from these calculations have been 13,538,168 shares.

(b) Diluted shares within the diluted EPS calculation signify primary shares for the three-month interval ended September 30, 2018 as a result of internet losses in that interval.

(c) Computed as Annualized internet earnings (loss) attributable to AIG widespread shareholders divided by common AIG widespread shareholders’ fairness. Fairness consists of AOCI and DTA.

(d) Computed as Annualized Adjusted after-tax earnings attributable to AIG widespread shareholders divided by Adjusted Frequent Shareholders’ Fairness.

(e) Represents deferred tax belongings solely associated to U.S. internet working loss and international tax credit score carryforwards on a U.S. GAAP foundation and excludes different steadiness sheet deferred tax belongings and liabilities.

(f) Represents whole AIG widespread shareholders’ fairness divided by Complete widespread shares excellent.

(g) Represents whole AIG widespread shareholders’ fairness, excluding AOCI, divided by Complete widespread shares excellent.

(h) Represents Adjusted Frequent Shareholders’ Fairness, divided by Complete widespread shares excellent.

American Worldwide Group, Inc.

Chosen Monetary Knowledge and Non-GAAP Reconciliation

($ in tens of millions, besides per widespread share quantities)

Reconciliations of Life and Retirement Adjusted Return on Frequent Fairness

Three Months Ended

September 30,

2019

2018

Adjusted pre-tax earnings

$

646

$

713

Curiosity expense on attributed monetary debt

45

30

Adjusted pre-tax earnings together with attributed curiosity expense

601

683

Earnings tax expense

117

134

Adjusted after-tax earnings

484

549

Dividends declared on most well-liked inventory

three

Adjusted after-tax earnings attributable to widespread shareholders

481

549

Ending adjusted attributed widespread fairness

$

19,235

$

19,254

Common adjusted attributed widespread fairness

$

19,028

$

19,613

Adjusted return on attributed widespread fairness

10.1

%

11.2

%

Annual actuarial assumption replace, internet of tax

$

(115

)

$

(79

)

Adjusted return on attributed widespread fairness, excluding annual actuarial assumption replace, internet of tax

12.5

%

12.eight

%

Reconciliations of Core Adjusted Return on Frequent Fairness

Three Months Ended

September 30,

2019

2018

Adjusted pre-tax earnings (loss)

$

653

$

(500

)

Curiosity expense on attributed monetary debt

Adjusted pre-tax earnings (loss) together with attributed curiosity expense

653

(500

)

Earnings tax expense (profit)

170

(134

)

Adjusted after-tax earnings (loss)

483

(366

)

Dividends declared on most well-liked inventory

eight

Adjusted after-tax earnings (loss) attributable to widespread shareholders

475

(366

)

Ending adjusted attributed widespread fairness

$

43,335

$

40,358

Common adjusted attributed widespread fairness

$

43,zero15

$

41,097

Adjusted return on attributed widespread fairness

four.four

%

(three.6

)

%

Web Premiums Written – Change in Fixed Greenback

Three Months Ended

Common Insurance coverage – Worldwide

September 30, 2019

Overseas change impact on worldwide premiums:

Change in internet premiums written

Enhance (lower) in unique forex

(10.6)

%

Overseas change impact

(1.zero)

Enhance (lower) as reported in U.S. dollars

(11.6)

%

American Worldwide Group, Inc.

Chosen Monetary Knowledge and Non-GAAP Reconciliation (continued)

($ in tens of millions, besides per widespread share quantities)

Reconciliations of Premiums and Deposits

Three Months Ended

September 30,

2019

2018

Particular person Retirement:

Premiums

$

38

$

9

Deposits

three,656

three,609

Different

(2

)

(2

)

Complete premiums and deposits

$

three,692

$

three,616

Group Retirement:

Premiums

$

5

$

9

Deposits

1,919

2,107

Different

Complete premiums and deposits

$

1,924

$

2,116

Life Insurance coverage:

Premiums

$

394

$

379

Deposits

404

410

Different

214

189

Complete premiums and deposits

$

1,012

$

978

Institutional Markets:

Premiums

$

389

$

46

Deposits

437

17

Different

7

6

Complete premiums and deposits

$

833

$

69

Complete Life and Retirement:

Premiums

$

826

$

443

Deposits

6,416

6,143

Different

219

193

Complete premiums and deposits

$

7,461

$

6,779

Sabra Purtill (Buyers): 212-770-7074; [email protected]
Daniel O’Donnell (Media): 212-770-3141; [email protected]
Claire Talcott (Media): 212-458-6343; [email protected]

Supply: American Worldwide Group, Inc.

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