American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — UBS Global Financial Services Conference (May 2014)
17 slides from American International Group, Inc. New's conference presentation, May 20, 2014
Slide 1: American International Group, Inc.
American International Group, Inc. UBS Global Financial Services Conference David L. Herzog Executive Vice President & Chief Financial Officer May 20, 2014
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This document and the remarks made within this presentation may include, and officers and representatives of American International Group, Inc. (AIG) may from time to time make, projections, goals, assumptions and statements that may constit
Slide 3: AIG – An Established Global Insurance Franchise
AIG – An Established Global Insurance Franchise Core Insurance Strategies Businesses Grow high value lines and optimize business mix AIG Property Casualty Execute on technical underwriting, improved claims management, and analytics Capitalize on global footprint; Focus on targeted growth in ke
Slide 4: AIG – Building on Capital Strength
AIG – Building on Capital Strength Total Shareholders’ Equity – $103.8 bn at March 31, 2014 AIG Property Casualty AIG Life and Retirement $48.6 bn $39.8 bn Other $13.0 bn(2) Other $13.0 bn(1) Mortgage Guaranty $2.4 bn 25% increase in quarterly dividend to $0.125/sh. in Feb. 2014 Active Capital A
Slide 5: Capital Position and Ratings
Capital Position and Ratings Capital Structure Credit Ratings(2) ($ in billions, except per share data) $125.6 S&P Moody’s Fitch AM Best $122.3 $0.6 $0.6 Non-redeemable $15.7 $15.7 noncontrolling AIG – Senior $5.5 $5.5 A- Baa1 BBB+ NR interests Debt (1) Financial Debt AIG PC(3) – A+ A1 A A FSR $100.
Slide 6: AIG – Levers for ROE Improvement
AIG – Levers for ROE Improvement We remain committed to sustainable ROE improvement. ROE Drivers Strategies Accident year loss ratio, as adjusted, improvement AIG Property Casualty Execution of Japan integration Rationalization of expense structure Maintain balanced approach to capital manag
Slide 7: AIG Property Casualty – Strategic Focus
AIG Property Casualty – Strategic Focus AIG Property Casualty Strategic levers are driving shareholder value creation Business Underwriting Claims Operational Capital Mix Excellence Service Effectiveness Management Balance growth with Globalize Global Claims Simplify and Use RAP as a key p
Slide 8: AIG Property Casualty – Commercial Insurance AYLR, As Adjusted, Progression
AIG Property Casualty – Commercial Insurance AYLR, As Adjusted, Progression Commercial Insurance Accident year loss ratio, as adjusted Accident year loss ratio, as adjusted (Ex. Severe losses) 76.9% 75.3% 73.7% 71.3% 75.7% 70.8% 73.2% 72.7% 70.3% 70.1% 67.3% 67.3% 69.5% 66.4% 66.2% 68.5% 65.4% 65.1%
Slide 9: AIG Property Casualty – Reserves
AIG Property Casualty – Reserves Business mix shifts away from long tail casualty lines and accelerated commutation of legacy portfolios (especially 2004 and prior) are expected to also reduce reserve variability. Net Reserves by Accident Year $66.3 billion at March 31, 2014 2004 & Prior 15% Busin
Slide 10: AIG Life and Retirement – Operating from a Position of Strength
AIG Life and Retirement – Operating from a Position of Strength Long standing leading market positions Market Leader Scale advantage in key product lines Comprehensive portfolio of life insurance, A&H, annuity, group retirement, Product Diversity group benefits, institutional products and mutu
Slide 11: AIG Life and Retirement – Individual Variable Annuities
AIG Life and Retirement – Individual Variable Annuities A strategic growth opportunity for AIG. Industry Retail Variable Annuity Sales* Account Value by GMWB Guarantee at 3/31/14(1) Company FY 2013 % Change FY 2012 ($ in millions) Rank Sales From FY 2012 Rank Sales Jackson National 1 $20,931 6% 1 $1
Slide 12: AIG Life and Retirement – Net Investment Spread Management
AIG Life and Retirement – Net Investment Spread Management Base Portfolio Yields(1) 5.50% 5.38% 5.35% 5.31% 5.33% 5.30% 5.32% 5.26% 5.29% 5.25% 5.25% 5.12% 5.12% 5.10% 5.24% 5.17% 5.23% 5.14% 5.08% 5.10% 5.11% 5.01% 4.95% 4.85% 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Cost of Funds(2) 3.27% 3.26% 3.2
Slide 13: Direct Investment Book Long-Term Debt
Direct Investment Book Long-Term Debt Net asset value of $7.9 billion in DIB/GCM expected to be released over time as debt matures. ($ in billions) DIB Long-term Debt % Maturing $25 90% 78% 80% $20 70% 56% 60% $14.9 $15 $13.4 (1) $12.5 50% $10.8 40% $10 28% 30% $6.5 16% $5 20% 10% $3.3 0% 10% $- 0%
Slide 14: ILFC – AIG Completes Its Last Major Non-core Asset Divestiture
ILFC – AIG Completes Its Last Major Non-core Asset Divestiture Net cash proceeds to AIG of approximately $2.4 billion available for general corporate purposes Non-operating pre-tax gain of approximately $2.2 billion expected to be Enhanced Liquidity recorded in 2Q14, relative to the AerCap $24.9
Slide 15: Deferred Tax Asset Overview
Deferred Tax Asset Overview AIG continues to have substantial deferred tax assets that are available to offset future tax obligations. As of 12/31/12 As of 12/31/13 Gross Deferred Gross Deferred ($ in billions) Type Attributes Tax Asset Attributes Tax Asset Utilization/Expiration Utilize against A
Slide 16: AIG – Catalysts for Improving ROE
AIG – Catalysts for Improving ROE ROE Drivers Strategies Focus on PC underwriting improvements Executing on Delivering on expense savings Operating Strategies Managing insurance subsidiaries efficiently from a capital standpoint Balance debt and equity capital management to optimize capital
Slide 17: American International Group, Inc. (AIG) is a leading international insurance organization serving customers in
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of
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