AIG 2013 Annual Report Download - page 107

The following tables present the AIG Property Casualty combined ratios based on GAAP data and
reconciliation to the accident year combined ratio, as adjusted:
Commercial Insurance
Loss ratio 80.3 84.1 (8.4) (3.8)
Catastrophe losses and reinstatement premiums (10.9) (11.9) 7.4 1.0
Prior year development net of premium adjustments (1.2) 1.9 (0.3) (3.1)
Net reserve discount benefit (charge) 0.5 0.2 (2.1) 0.3
Accident year loss ratio, as adjusted 68.7 74.3 (3.4) (5.6)
Acquisition ratio 16.6 14.6 (0.5) 2.0
General operating expense ratio 12.2 9.8 0.3 2.4
Expense ratio 28.8 24.4 (0.2) 4.4
Combined ratio 109.1 108.5 (8.6) 0.6
Catastrophe losses and reinstatement premiums (10.9) (11.9) 7.4 1.0
Prior year development net of premium adjustments (1.2) 1.9 (0.3) (3.1)
Net reserve discount benefit (charge) 0.5 0.2 (2.1) 0.3
Accident year combined ratio, as adjusted 97.5 98.7 (3.6) (1.2)
Consumer Insurance
Loss ratio 60.9 64.7 (1.9) (3.8)
Catastrophe losses and reinstatement premiums (2.7) (5.2) 2.1 2.5
Prior year development net of premium adjustments 0.1 (0.6) 1.0 0.7
Accident year loss ratio, as adjusted 58.3 58.9 1.2 (0.6)
Acquisition ratio 25.0 23.8 0.5 1.2
General operating expense ratio 15.3 14.4 0.6 0.9
Expense ratio 40.3 38.2 1.1 2.1
Combined ratio 101.2 102.9 (0.8) (1.7)
Catastrophe losses and reinstatement premiums (2.7) (5.2) 2.1 2.5
Prior year development net of premium adjustments 0.1 (0.6) 1.0 0.7
Accident year combined ratio, as adjusted 98.6 97.1 2.3 1.5
Total AIG Property Casualty
Loss ratio 73.9 78.3 (7.2) (4.4)
Catastrophe losses and reinstatement premiums (7.5) (9.2) 5.2 1.7
Prior year development net of premium adjustments (1.4) (0.3) (0.1) (1.1)
Net reserve discount benefit (charge) 0.2 (0.1) 0.7 0.3
Accident year loss ratio, as adjusted 65.2 68.7 (1.4) (3.5)
Acquisition ratio 19.9 18.1 (0.2) 1.8
General operating expense ratio 14.7 12.3 0.2 2.4
Expense ratio 34.6 30.4 – 4.2
Combined ratio 108.5 108.7 (7.2) (0.2)
Catastrophe losses and reinstatement premiums (7.5) (9.2) 5.2 1.7
Prior year development net of premium adjustments (1.4) (0.3) (0.1) (1.1)
Net reserve discount benefit (charge) 0.2 (0.1) 0.7 0.3
Accident year combined ratio, as adjusted 99.8 99.1 (1.4) 0.7
AIG Property Casualty Underwriting Ratios
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AIG 2013 Form 10-K 89
ITEM 7 / RESULTS OF OPERATIONS / AIG PROPERTY CASUALTY
Increase (Decrease)
Years Ended December 31, 2013 2012 2011 2013 vs. 2012 2012 vs. 2011
71.9
(3.5)
(1.5)
(1.6)
65.3
16.1
12.5
28.6
100.5
(3.5)
(1.5)
(1.6)
93.9
59.0
(0.6)
1.1
59.5
25.5
15.9
41.4
100.4
(0.6)
1.1
100.9
66.7
(2.3)
(1.5)
0.9
63.8
19.7
14.9
34.6
101.3
(2.3)
(1.5)
0.9
98.4
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