American International Group, Inc. (NYSE:AVF CL) Q2 2016 Earnings Conference Call - Preliminary Transcript

Aug 03, 2016 • 08:00 am ET


American International Group, Inc. (NYSE:AVF CL) Q2 2016 Earnings Conference Call - Preliminary Transcript


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Good day, and welcome to AIG's Second Quarter Financial Results Conference Call. Today's conference is being recorded. At this time

I'd like to turn the conference over to Liz Werner. Head of Investor Relations. Please go ahead, ma'am.

Elizabeth A. Werner

Thank you, Lauren. Before we get started this morning, I'd like to remind you that today's presentation may contain forward-looking statements which are based on management's current expectations. They are subject to uncertainty and changes in circumstances. Any forward-looking statements are not guarantees of future performance or events. Actual performance and events may differ possibly materially from such forward-looking statements. Factors that could cause this, include the factors described in our first and second quarter Form 10-Q and our 2015 Form 10-K under management's discussion and analysis of financial conditions and results of operations under risk factors.

AIG is not under any obligation and expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Today's presentation may contain non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in the slides for today's presentation and in our financial supplement, both of which are available on our website. Nothing in today's presentation or in any oral statements made in connection with this presentation, is intended to constitute nor shall it deem to constitute any offer of any securities for sale or the solicitation of an offer to purchase any securities in any jurisdiction.

As in past calls, we will take one question per analyst and caller and we will ask you to get back in the queue so that we can handle as many questions as possible. You will be muted after you ask your question. So please do get back in the queue and as always please reach out to us at the end of the call if in fact, we don't get to every question this morning.

With that, I would like to turn it over to our speakers today. We have our CEO, Peter Hancock; our CFO, Sid Sankaran; and many others in the room, including our Head of Commercial, Rob Schimek; and the Head of Consumer, Kevin Hogan.

With that, Peter, I'll turn it to you.

Peter D. Hancock

Thank you, Liz, and good morning, everyone. This morning I will speak briefly to our performance this quarter as well as our outlook and ongoing transformation. AIG's second quarter results showed strong improvement towards all the goals the board and I announced in January. We've executed more quickly and smoothly than expected and our confidence in reaching our 2017 financial targets is high as our earnings become more sustainable. In the second quarter, we continued to execute and delivered strong operating earnings of $0.98 per share, including a $0.17 charge from the worker's compensation discount, which Sid will discuss.

Adjusted commercial insurance underwriting improved again this quarter, which Rob will speak to. Consumer's expense discipline also resulted in increased profitability, particularly in Personal Insurance and Kevin will address