AIG Q2 2020 Earnings Report
Key Takeaways
AIG reported its Q2 2020 results, showing resilience amidst the COVID-19 pandemic. The company focused on portfolio remediation and expense discipline, while Life and Retirement benefited from diversification. AIG also executed transactions to enhance its risk profile, including the sale of a majority stake in Fortitude Holdings.
AIG effectively navigated the complex environment due to the strong foundation built over the last three years.
COVID-19 remained an earnings, not a capital, event for AIG.
Core businesses performed well, with General Insurance showing underwriting profitability improvement and Life and Retirement benefiting from diversification.
AIG executed transactions, including the sale of a majority stake in Fortitude Holdings, to enhance its risk profile.
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Forward Guidance
AIG is focused on becoming a top-performing company and leading insurance franchise.
Positive Outlook
- Strong foundation built over the last three years enables effective navigation of the complex environment.
- Financial flexibility increased, ending the second quarter with over $10 billion in liquidity.
- Underlying underwriting profitability improvement in General Insurance driven by portfolio remediation and expense discipline.
- Life and Retirement benefited from its diversification and agility.
- Executed transactions enhanced risk profile and positioned core businesses for growth.
Challenges Ahead
- COVID-19 continues to adversely affect the business, financial condition and results of operations.
- Uncertainty regarding the scope, severity and duration of the crisis and actions taken by governmental and regulatory authorities.
- Possibility of a prolonged recession in the U.S. and other major economies.
- Potential for materially and adversely affected businesses, results of operations and financial condition.
- Risk that the actual impacts of COVID-19 may differ materially from forward-looking statements due to uncertain and unpredictable factors.