AIG 2015 Annual Report Download - page 86

ITEM 7 / RESULTS OF OPERATIONS / COMMERCIAL INSURANCE

86
The following tables present Property Casualty’s accident year catastrophe and severe losses by region and number
of events:
Catastrophes(a)
# of Asia
(in millions) Events Americas Pacific EMEA Total
Year Ended December 31, 2015
Flooding 4 $ 74 $ - $ 69 $143
Windstorms and hailstorms 14 274 121 15 410
Wildfire 1 9 - - 9
Tropical cyclone 1 - 12 -12
Earthquakes 1 7 - - 7
Total catastrophe-related charges 21 $364 $ 133 $ 84 $581
Year Ended December 31, 2014
Flooding 1 $ 16 $ - $ - $ 16
Windstorms and hailstorms 14 306 63 21 390
Tropical cyclone 4 96 34 15 145
Earthquakes 1 48 - 1 49
Reinstatement premiums - - 2 2
Total catastrophe-related charges 20 $ 466 $ 97 $ 39 $ 602
Year Ended December 31, 2013
Flooding 8 $ 195 $ 8 $ 114 $ 317
Windstorms and hailstorms 10 205 - 78 283
Wildfire 1 40 - - 40
Tropical cyclone 3 4 66 - 70
Total catastrophe-related charges 22 $ 444 $ 74 $ 192 $ 710
(a) Catastrophes are generally weather or seismic events having a net impact on AIG in excess of $10 million each.
Severe Losses(b)
Years Ended December 31, # of Asia
(in millions) Events Americas Pacific EMEA Total
2015 29 $378 $ 27 $ 294 $699
2014 30 $ 169 $ 73 $ 350 $ 592
2013 27 $ 139 $ 184 $ 246 $ 569
(b) 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.
2015 and 2014 Comparison
The loss ratio and combined ratio increased by 14.6 points and 14.8 points, respectively, in 2015 compared to 2014, primarily
due to higher net adverse prior year loss development.
The accident year combined ratio, as adjusted, increased by 0.8 points in 2015 compared to 2014 primarily due to a higher
accident year loss ratio, as adjusted, and an increase in the acquisition ratio.
The accident year loss ratio, as adjusted, increased by 0.6 points in 2015 compared to 2014, primarily due to higher casualty
and severe losses, partially offset by lower attritional losses in U.S. Property, and Specialty, particularly in the U.S. and EMEA.
Severe losses represented approximately 3.5 points and 2.8 points of the accident year loss ratio, as adjusted, respectively, in
2015 and 2014.
The acquisition ratio increased by 0.4 points in 2015 compared to 2014 primarily due to higher commission expenses in certain
classes of business in Property and Specialty and higher premium taxes and other assessments reflecting a change in
business mix.