AIG stories This fall and full-year 2021 monetary effects

AIG stories This fall and full-year 2021 monetary effects

For the fourth quarter, AATI used to be US$1.3 billion, or US$1.58 in keeping with diluted not unusual proportion, in comparison to US$827 million, or US$0.94 in keeping with diluted not unusual proportion, within the prior 12 months quarter. Fourth quarter 2021 internet source of revenue resulting from AIG not unusual shareholders used to be US$3.7 billion, in comparison to a internet lack of US$60 million in the similar length of 2020.

AIG attributed the rise in source of revenue essentially to the sturdy underwriting leads to Common Insurance coverage, the place internet premiums written grew 7% in This fall of 2021 in comparison to the prior-year quarter, and 13% for FY21, pushed by way of world industrial strains expansion of 13% within the fourth quarter and 18% for the total 12 months.

The Common Insurance coverage trade reported an underwriting benefit for FY21 and for each and every quarter of the 12 months, which Zaffino mentioned used to be “because of disciplined execution and volatility relief in an atmosphere of ever-increasing herbal disaster chance.”

The unit’s blended ratio progressed by way of 10.4 issues within the fourth quarter of 2021, in comparison to the prior-year length, hitting 92.4%. As wired by way of Zaffino, the development displays decrease CATs and total sturdy underwriting effects pushed by way of enhancements in each the loss and expense ratios of 8.4 issues and a couple of.0 issues, respectively.

“Within the fourth quarter and whole 12 months 2021, AIG delivered exceptional monetary effects with Common Insurance coverage proceeding to provide progressed underwriting profitability thru very good best line expansion and hugely lowered volatility because of gross prohibit discounts and the strategic use of reinsurance, and Existence and Retirement once more creating a significant contribution to our total effects,” mentioned Zaffino. “We ended the 12 months with dad or mum liquidity of US$10.7 billion. The standard of those results is because of our world colleagues’ arduous paintings, willpower and dedication to excellence in the whole lot we do.”

AIG’s Existence and Retirement section delivered what the CEO described as “every other cast quarter” in This fall because of its assorted trade, larger annuity gross sales, and the favorable affect of fairness markets on each the funding portfolio and price source of revenue.

The unit reported adjusted pre-tax source of revenue of US$969 million for This fall, down 6% from the prior 12 months quarter, however this used to be in part offset by way of upper price source of revenue and choice funding source of revenue. Premiums written have been US$2.7 billion within the fourth quarter, up fromUS$1 billion within the prior-year quarter, pushed by way of upper pension chance switch gross sales.

“Since saying our intent to split Existence and Retirement from AIG, we have now made vital growth in making ready the trade to be an impartial, standalone corporate, together with last at the sale of a 9.9% fairness stake to Blackstone in November 2021,” mentioned Zaffino. “Over the process 2021, we lowered debt and most popular inventory leverage by way of 380 foundation issues to 24.6% by way of repurchasing US$4 billion of debt, and we returned US$3.7 billion to shareholders thru not unusual inventory repurchases and dividends.”

The CEO concluded his research with the certain looking-forward observation: “AIG entered 2022 higher, more potent, and neatly located to proceed to ship price to all stakeholders as we proceed our adventure to be a best acting corporate.”   

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