AIG 2014 Annual Report Download - page 118

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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The following tables present Personal Insurance accident year catastrophe and severe losses by region and the
number of events:
Catastrophes*
# of Asia
(in millions) Events Americas Pacific EMEA Total
Year Ended December 31, 2014
Flooding -$ -$ - $ - $ -
Windstorms and hailstorms 14 51 46 -97
Tropical cyclone 4 9 19 -28
Earthquakes 1 1 - - 1
Reinstatement premiums - - - -
Total catastrophe-related charges 19 $61 $ 65 $ - $ 126
Year Ended December 31, 2013
Flooding 7 $ 26 $ - $ 2 $ 28
Windstorms and hailstorms 2 11 - 5 16
Tropical cyclone - - 33 - 33
Total catastrophe-related charges 9 $ 37 $ 33 $ 7 $ 77
Year Ended December 31, 2012
Flooding -$ -$ - $ -$ -
Windstorms and hailstorms 9 12 18 - 30
Tropical cyclone 3 343 9 - 352
Drought - - - - -
Reinstatement premiums - - - -
Total catastrophe-related charges 12 $ 355 $ 27 $ - $ 382
* Catastrophes are generally weather or seismic events having a net impact on Personal Insurance in excess of $10 million each.
Severe Losses*
Years Ended December 31, # of Asia
(in millions) Events Americas Pacific EMEA Total
2014 4 $ 50 $ 4 $ - $ 54
2013 1 $ 17 $ - $ - $ 17
2012 4 $ 13 $ 20 $ - $ 33
* Severe losses are defined as non-catastrophe individual first party losses and surety losses greater than $10 million, net of related reinsurance and salvage
and subrogation.
2014 and 2013 Comparison
The combined ratio decreased by 1.6 points in 2014 compared to 2013, primarily due to a lower loss ratio, partially offset by a
higher acquisition ratio as discussed below.
The accident year combined ratio, as adjusted, decreased by 2.6 points in 2014 compared to 2013, primarily due to an
improved accident year loss ratio, as adjusted.
The accident year loss ratio, as adjusted, decreased by 3.6 points in 2014 compared to 2013, as a result of improvements
across all lines of business. The lower losses associated with a warranty retail program were largely offset by an increase in
the related profit sharing arrangement, which increased the acquisition ratio in 2014 compared to 2013. The severe losses of
$54 million, resulting largely from four fire claims, accounted for 0.5 points of the accident year loss ratio, as adjusted, in 2014.
The general operating expense ratio remained unchanged in 2014 compared to 2013, reflecting the impact of efficiencies from
organizational realignment initiatives, offset by increased technology-related expenses.