Alex Scott: Thank you.
Peter Zaffino: We’ll take one more question.
Operator: Thank you. Our next question comes from Michael Zaremski with BMO. Your line is open.
Michael Zaremski: Hey, great. Good morning. My question is on some points that were touched on already on the portfolio transformation strategy, which has obviously been successful over the past five years. So, Peter, you used the T word, trillion, you said $1.4 trillion limit reduction. So, just curious, I think David gave us a flavor of this answer, but does that — is there a way to frame what percentage limit reduction your average policy is? It sounds like David said it’s over 50% in some of those financial lines. And just related, like how is that — was AIG an outlier and you’ve moved towards the market, or just how has this changed your competitive position in the marketplace?
Peter Zaffino: Yes, I think you recognize how we were able to reduce volatility. When you have I have to even pause when I have to write out trillion because it’s a big number and $1.4 trillion of limit I don’t think that’s been done in our business before and then reposition the portfolio to drive significant profitability improvement. It absolutely was an outlier. Its gross limit deployment and net limit deployment was significant relative to any of its competitors. And in order to have the type of predictable results we’ve been able to produce over the past couple of years when you see the relative improvement as well as absolute improvement, we are really proud of that. You had to take out the volatility, which was the outsized limits, not only from a gross perspective.
And we recognize that. While we talk about it is that — yes, we’re by reinsurance, it’s strategic, it matters, but it’s not what’s driving the results. The driving the results is the gross underwriting and the overall reduction. Everywhere you look, property, casualty, financial lines, everything is 50% plus a reduction of gross limits. And then you add on reinsurance to temper volatility. That’s how we’ve been able to position the portfolio to have not only significantly improved results less volatility. It’s also very sustainable and we believe that there’s opportunities for further improvement.
Michael Zaremski: Okay, great. And my last, if I may is on — there’s a lot of leadership changes over the past eight years and quarters. I think Sabra used the term simplify structure. I guess any color you can offer on are we — is the structure simplified or baseball inning four or nine, or any comments would be helpful?
Peter Zaffino: Sure. Look, we’ve had a lot of change over the last five years. When I look at our overall attrition, it’s at all-time low. We’ve had a couple of Senior Executives that we brought in to position the organization for the future and believe that the underwriting structure that we put forward is going to be with us for a couple of years. It’s going to drive the performance that we’ve become accustomed to. And we’ll continue to bring in skill sets in the organization that supplement what we already have in order to position us for the future. So, I’m like really very pleased. As I said, we have very low attrition, continue to upgrade talent across the organization and people want to come work here, which is a really positive attribute of the organization and how we position it for the future.
Peter Zaffino: So, thank you. I do have one closing remark. First of all, I’m very proud and I’d like to thank all of our colleagues for their efforts and all that they’ve done to progress our strategic plans and deliver consistently strong financial results. Very proud of them. I would like to say a few words about our former Chief Financial Officer, Shane Fitzsimons, who passed away on Friday, October 27. Shane had a brilliant career. He was highly thought of in the global business community and quickly earned the trust and respect of the insurance industry, which is not easy to do. He was a cherished colleague here at AIG. Shane brought energy, integrity and a very positive attitude that was both contagious and inspiring. He’s a big reason why AIG is where it is today. Shane was a great friend to many of us, and we’re so grateful for all that he did for AIG, our stakeholders, and our colleagues. Thank you, and have a great day.
Operator: Thank you for your participation. This does conclude the program and you may now disconnect. Everyone have a great day.
