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Jun 30, 2020
AIG Q2 2020 Earnings Report
AIG navigated the complex environment, maintained financial flexibility, and improved underwriting profitability.
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.
AIG
AIG
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.