American International Group, Inc. (NYSE:AIG) Q3 2016 Earnings Conference Call - Final Transcript

Nov 03, 2016 • 08:00 am ET


American International Group, Inc. (NYSE:AIG) Q3 2016 Earnings Conference Call - Final Transcript


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Please stand by. Good day, and welcome to AIG's Third Quarter Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Liz Warner. Please go ahead ma'am.

Elizabeth A. Werner

Thank you, operator, and good morning, everyone. Before we get started, I'd like to remind you that today's presentation may contain forward-looking statements, which are based on management's current expectations and 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, second and third quarter Form 10-Qs and our 2015 Form 10-K under Management's Discussion and Analysis of Financial Conditions and Results of Operations and 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 our financial supplement, which are available on our website. Nothing in today's presentation or in oral statements made in connection with this presentation is intended to constitute nor shall it be deemed to constitute any offer of any securities up for sale or a solicitation of an offer to purchase any securities in any jurisdiction.

This morning, we will get to hear from our management team and -- which would include Peter Hancock, Sid Sankaran, Rob Schimek and Kevin Hogan. And we'll begin this morning's call with Peter.

Peter D. Hancock

Thank you, Liz, and good morning, everyone. I'm pleased with our progress this quarter and the continued execution of our strategic plan. We reported third quarter operating EPS of $1.00 a share, a solid result despite volatility from our review of our longevity assumptions and certain segments of our Commercial business. I'm pleased that we maintained our strong position in our Life and Retirement segments and delivered another strong quarter in Personal Insurance. I remain highly focused on the continued improvement of our commercial underwriting and believe we're taking appropriate actions. Sid and Rob will speak to the specifics of our reserves and underwriting strategy in their remarks.

Since the second quarter, we announced or completed five strategic and complex transactions. These actions are increasing the sustainability of AIG's earnings and are reshaping the Company. During our January strategy update, we discussed our focus on targeting geographies and segments with critical mass and expertise, while improving our multinational capabilities. The Fairfax transaction is the most recent example of executing on this strategy. The transaction required the extraordinary effort of our employees across two continents, 12 countries, and required the close and timely coordination with over 20 different regulators. The transaction is expected to consolidate our network partners and reinforce our commitment to servicing our multinational clients in over 200 countries