Leading change in a changing world, however, requires being a company of action – and setting a standard with actions. We believe that insurance companies, like AIG, can be a catalyst for positive change as it relates to sustainability advancements and renewable energy expansion. We are investing in education and guidance toward logical and sensible paths forward for the clients and industries we serve.
AIG is focused on the realities of climate change and its impact on the insurance industry. Data about increasing CAT frequency and severity across the globe is unambiguous, and therefore, we must respond proactively and intelligently. The insurance industry has experienced a record number of severe CAT losses in recent years. Since 2012, there have been 12 CAT events with insured losses exceeding $10 billion and ten of those occurred between 2017 and 2021i. Total CAT losses were approximately $120 billion in 2021, which is the second highest total of all timeii.
Furthermore, 2021 was the sixth warmest year on record since the National Oceanic and Atmospheric Administration (NOAA) began tracking global temperatures in 1880iii. Hurricane Ida, estimated at $36 billion of insured losses, was the third largest hurricane on record. In North America, $17 billion of winter weather losses was the largest on record for this peril. And, $13 billion of insured losses for European flooding was the costliest disaster on record for the continentiv.
This data is why we committed to achieving net zero greenhouse gas emissions by 2050 or sooner across AIG’s operations as well as our global underwriting and investment portfolios. As we execute on these milestones, we are committed to using science-based emissions reduction targets, aligning with the latest climate science to meet the goals of the Paris Agreement.
To ensure that AIG remains at the center of these important global conversations, we also added diverse voices to our already strong Executive Leadership Team. Currently, 50 percent of our Executive Leadership Team is female or ethnically diverse.
In June, we added Claude Wade as Executive Vice President, Global Head of Operations & Shared Services and Chief Digital Officer. In July, Sabra Purtill was promoted to Executive Vice President, Chief Risk Officer. In October, we announced Mark Lyons would become Executive Vice President, Global Chief Actuary & Head of Portfolio Management and Shane Fitzsimons would become Executive Vice President, Chief Financial Officer as of January 1, 2022. On the same date, Rose Marie Glazer was promoted to Executive Vice President, Chief Human Resource Officer. And, in early 2022, Constance Hunter joined our Executive Leadership Team in the newly created position of Executive Vice President, Global Head of Strategy & ESG.
This same commitment to diversity and allyship was behind the action we took in August 2021 with regard to the AIG Women’s Open. Together, AIG and our partner, The R&A, increased the purse to be the largest prize fund in 2021 in women’s major championship golf. The AIG Women’s Open is one of the most prestigious and celebrated golf championships in the world. AIG is committed to serving as allies to women in golf, in business and in the communities where we live and work. Striving for pay equity and highlighting the achievements of successful women are critical components of this commitment and part of AIG’s core values.
Our commitment to ESG is central to discovering new potential.
AIG – Discovering New Potential
Just as important as AIG’s financial transformation is our ongoing cultural transformation.
Our global colleagues conduct business in approximately 70 countries and jurisdictions, and they are committed to casting a positive shadow on all corners of a complex and dynamically changing world. This deep commitment is at the heart of AIG’s Purpose Statement, which serves as the North Star in our journey to become a top performing company.
AIG’s Purpose Statement is: To Discover New Potential by Reimagining What AIG Can Do For You.
We seek to create meaningful impacts during critical moments, such as our response during catastrophes. Our Purpose seeks to define the role we aspire to have in our industry, as well as in our global communities. We recognize that it is not just about winning, it is about how we win.
We will win with excellence, ethics and integrity.
“Discovering New Potential” represents the opportunity for us to build upon the work we do today with a view towards what insurance can do in the future. This empowers us to unveil opportunities for our clients and distribution partners, as well as opportunities for our colleagues and communities. “Reimagining What AIG Can Do For You” underscores our commitment to being more client-, community- and colleague-centric.
AIG is a Purpose- and Values-driven company and that shows up in our daily activities and behaviors through our connections to clients, distribution partners, communities and each other. A strong financial performance and a strong commitment to ethical corporate behavior are the cornerstone of AIG’s culture and purpose.
To support our Purpose, our Values set clear expectations for what it means to work at AIG and to encourage the behaviors required to drive change. These Values are authentic to AIG – simple principles that amplify our strengths and can be easily integrated into day-to-day activities, attitudes and processes.
Our Purpose and Values define the role we aspire to have in our industry, as well as our societies at large, and will guide us toward our promising future.
AIG – A Promising Future
I am proud to be AIG’s Chairman & Chief Executive Officer and to lead AIG into its promising future. I appreciate the support of our Board of Directors and I am grateful for the strong leadership shown by my Executive Leadership Team. Most importantly, I appreciate the hard work and valuable contributions from our global colleagues, and the commitment to excellence they demonstrate every day.
The world around us is challenging our perspectives on risk and AIG is ready to manage complex issues that were barely imaginable a few years ago. This operating environment has also brought about new opportunities for industry leadership and value creation for our shareholders, clients, distribution partners, colleagues and communities.
In this re-envisioned world, insurance is more than a way for clients to handle what can go wrong, it’s a catalyst for all that can go right. This is the AIG that tackles risk and the AIG that Discovers New Potential – this is the AIG that will create long-term value for all its stakeholders.
Thank you for your investment of trust in AIG.
Chairman & Chief Executive Officer
American International Group, Inc.
* These are non-GAAP financial measures. The definition and reconciliation of Accident Year Combined Ratio to the most comparable GAAP measure are on pages 58 and 91, respectively, of the 2021 Form 10-K and on pages 346 and 348 of this Annual Report. The definition and reconciliation of Return on Adjusted Segment Common Equity to the most comparable GAAP measure are included on pages 346 and 347 of this Annual Report.
i Aon. Catastrophe Insight, November 11, 2021.
ii Munich Re. Hurricanes, cold waves, tornadoes: Weather disasters in USA dominate natural disaster losses in 2021, January 10, 2022.
iii NOAA. Assessing the Global Climate in 2021, January 13, 2022.
iv Aon. 2021 Weather, Climate and Catastrophe Insight, January 25, 2022.