AIG 2014 Annual Report Download - page 96

ITEM 7 / RESULTS OF OPERATIONS / COMMERCIAL INSURANCE
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Asia Pacific net premiums written increased in 2013 compared to 2012, primarily due to organic growth and rate increases in
Property, Specialty, and Casualty. In addition, our decision to retain more favorable risks in Property and Financial lines
increased net premiums written in 2013 compared to 2012.
EMEA net premiums written increased in 2013 compared to 2012, due to new business growth, particularly in Property and
Financial lines, and a change in reinsurance strategies to retain more favorable risks in those lines.
Property Casualty Underwriting Ratios
The following tables present the Property Casualty combined ratios based on GAAP data and reconciliation to the
accident year combined ratio, as adjusted:
Increase (Decrease)
Years Ended December 31, 2014 2013 2012
2014 vs. 2013 2013 vs. 2012
Loss ratio 71.6 71.9 80.5 (0.3) (8.6)
Catastrophe losses and reinstatement premiums (2.9) (3.4) (10.9) 0.5 7.5
Prior year development net of premium adjustments (2.8) (1.5) (1.2) (1.3) (0.3)
Net reserve discount benefit (charge) (0.3) (1.6) 0.5 1.3 (2.1)
Accident year loss ratio, as adjusted 65.6 65.4 68.9 0.2 (3.5)
Acquisition ratio 15.7 16.1 16.6 (0.4) (0.5)
General operating expense ratio 12.9 13.6 13.8 (0.7) (0.2)
Expense ratio 28.6 29.7 30.4 (1.1) (0.7)
Combined ratio 100.2 101.6 110.9 (1.4) (9.3)
Catastrophe losses and reinstatement premiums (2.9) (3.4) (10.9) 0.5 7.5
Prior year development net of premium adjustments (2.8) (1.5) (1.2) (1.3) (0.3)
Net reserve discount benefit (charge) (0.3) (1.6) 0.5 1.3 (2.1)
Accident year combined ratio, as adjusted 94.2 95.1 99.3 (0.9) (4.2)
PROPERTY CASUALTY RATIOS
See Insurance Reserves – Non-Life Insurance Companies for further discussion of discounting of reserves and prior year
development.