AIG Announces Reinsurance Deal With Swiss Re

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE:AIG) announced today that it has entered into a two-year reinsurance arrangement with Swiss Re, under which a share of AIG’s new and renewal U.S. Casualty portfolio will be ceded to the reinsurer, consistent with the plans announced by AIG in its January 26, 2016 strategic update to investors.

The reinsurance arrangement is an important step in AIG’s strategy to improve its Commercial Insurance diversification and return on equity (ROE), and it highlights AIG’s focus on capital efficiency. This risk sharing agreement complements AIG’s leadership position as a premier provider of insurance products and services in the U.S. Casualty market.

“Swiss Re and AIG have had a strategic relationship for a number of years, and the trust and knowledge-sharing between the two companies facilitated this mutually attractive economic transaction,” said Rob Schimek, CEO of AIG Commercial. “We have been very clear about our desire to partner with our reinsurers to help achieve our strategic objectives, and this agreement with Swiss Re is an example of what is achievable with longstanding counterparties.”

Christian Mumenthaler, CEO Reinsurance Swiss Re, commented: "We are delighted to continue our long term partnership with AIG, providing solutions across their business. We know this portfolio, the leaders, and the underwriters very well and believe in AIG's plans. As a result, we are happy to accompany them on this journey by taking a significant position in this business. It's a transaction that allows both AIG and Swiss Re to improve their diversification."

Non-GAAP Financial Measures

As referred to in this press release, return on equity means normalized operating ROE excluding AOCI and DTA, and is a non-GAAP financial measure. For additional information, see appendix of Strategic Actions to Maximize Shareholder Value at https://www-160.aig.com/strategyupdate.

Forward-looking Statements

Certain statements in this press release constitute forward-looking statements. These statements are not historical facts but instead represent only AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. Factors that could cause actual results to differ, possibly materially, from those in the forward-looking statements are discussed throughout AIG’s periodic filings with the SEC pursuant to the Securities Exchange Act of 1934.

American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today we provide a wide range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 100 countries and jurisdictions. Our diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance | LinkedIn: http://www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

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American International Group, Inc.
Media
Matt Gallagher, 212-458-3247
matthew.gallagher2@aig.com
or
Investors
Liz Werner, 212-770-7074
elizabeth.werner@aig.com

Source: American International Group, Inc.