AIG Reports Excellent Third Quarter 2024 Results
AIG reported strong Q3 2024 results with General Insurance net premiums written of $6.4 billion, showing a 6% increase on a comparable basis. Global Commercial Lines achieved 7% growth with $4.5 billion in net premiums written, led by 11% growth in North America Commercial Lines. The company reported net income per diluted share of $0.71, while adjusted after-tax income per diluted share increased 18% to $1.23. Notable achievements include $1.1 billion in new business written, a combined ratio of 92.6%, and return of approximately $1.8 billion to shareholders through stock repurchases ($1.5 billion) and dividends ($254 million).
AIG ha riportato risultati solidi per il terzo trimestre del 2024, con premi netti di assicurazione generale scritti pari a 6,4 miliardi di dollari, mostrando un aumento del 6% su base comparabile. Le Linee Commerciali Globali hanno registrato una crescita del 7% con 4,5 miliardi di dollari in premi netti scritti, guidate da una crescita dell'11% nelle Linee Commerciali del Nord America. L'azienda ha riportato un reddito netto per azione diluita di 0,71 dollari, mentre il reddito netto rettificato dopo le tasse per azione diluita è aumentato del 18% a 1,23 dollari. Tra i risultati notevoli ci sono 1,1 miliardi di dollari in nuovi affari scritti, un rapporto combinato del 92,6% e un ritorno di circa 1,8 miliardi di dollari agli azionisti attraverso riacquisti di azioni (1,5 miliardi) e dividendi (254 milioni).
AIG reportó resultados sólidos para el tercer trimestre de 2024, con primas netas de seguros generales escritas de 6.4 mil millones de dólares, mostrando un aumento del 6% en comparación. Las Líneas Comerciales Globales alcanzaron un crecimiento del 7% con 4.5 mil millones de dólares en primas netas escritas, impulsadas por un crecimiento del 11% en las Líneas Comerciales de América del Norte. La compañía reportó un ingreso neto por acción diluida de 0.71 dólares, mientras que el ingreso ajustado después de impuestos por acción diluida aumentó un 18% a 1.23 dólares. Los logros notables incluyen 1.1 mil millones de dólares en nuevos negocios escritos, una relación combinada del 92.6% y un retorno de aproximadamente 1.8 mil millones de dólares a los accionistas a través de recompras de acciones (1.5 mil millones) y dividendos (254 millones).
AIG는 2024년 3분기 강력한 실적을 보고했으며, 일반 보험의 순보험료는 64억 달러로, 비교 기준에서 6% 증가했습니다. 글로벌 상업 라인은 45억 달러의 순보험료를 기록하며 7% 성장했으며, 북미 상업 라인에서 11%의 성장이 이끌었습니다. 회사는 희석 주당 순이익이 0.71달러라고 보고했으며, 세후 조정 순이익이 희석 주당 1.23달러로 18% 증가했습니다. 주목할 만한 성과로는 신규 사업으로 11억 달러를 기록했으며, 결합 비율이 92.6%, 주식 매입(15억 달러) 및 배당금(2억 5천4백만 달러)을 통한 주주에 대한 약 18억 달러의 반환이 포함됩니다.
AIG a rapporté des résultats solides pour le troisième trimestre 2024, avec des primes nettes d'assurance générale écrites s'élevant à 6,4 milliards de dollars, montrant une augmentation de 6 % sur une base comparable. Les Lignes Commerciales Globales ont enregistré une croissance de 7 % avec 4,5 milliards de dollars de primes nettes écrites, soutenues par une croissance de 11 % dans les Lignes Commerciales en Amérique du Nord. L'entreprise a annoncé un revenu net par action diluée de 0,71 dollar, tandis que le revenu net ajusté après impôts par action diluée a augmenté de 18 % pour atteindre 1,23 dollar. Parmi les réalisations notables figurent 1,1 milliard de dollars de nouveaux contrats signés, un ratio combiné de 92,6 % et un retour d'environ 1,8 milliard de dollars aux actionnaires par le biais de rachats d'actions (1,5 milliard) et de dividendes (254 millions).
AIG hat für das dritte Quartal 2024 starke Ergebnisse gemeldet, mit nettopremien aus allgemeiner Versicherung in Höhe von 6,4 Milliarden Dollar, was einem Anstieg von 6% auf vergleichbarer Basis entspricht. Globale Commercial Lines erzielten ein Wachstum von 7% mit 4,5 Milliarden Dollar an nettopremien, angetrieben von einem Wachstum von 11% bei den Commercial Lines in Nordamerika. Das Unternehmen meldete einen Nettogewinn pro verwässerter Aktie von 0,71 Dollar, während das angepasste Nettoergebnis nach Steuern pro verwässerter Aktie um 18% auf 1,23 Dollar stieg. Zu den bemerkenswerten Erfolgen zählen 1,1 Milliarden Dollar an neuen Geschäften, eine kombinierte Quote von 92,6% und eine Rückführung von etwa 1,8 Milliarden Dollar an die Aktionäre durch Aktienrückkäufe (1,5 Milliarden Dollar) und Dividenden (254 Millionen Dollar).
- Adjusted after-tax income per share increased 18% YoY to $1.23
- Strong new business growth of $1.1 billion in Global Commercial Lines, up 9% YoY
- North America Commercial Lines achieved 11% growth with 22% new business growth
- Net investment income increased 14% to $973 million
- Returned $1.8 billion to shareholders through buybacks and dividends
- Strong total debt to capital ratio of 17.9%
- Net income per diluted share decreased to $0.71 from $2.81 YoY
- General Insurance net premiums written decreased 1% on reported basis
- Combined ratio increased to 92.6% from 90.5% YoY
- Adjusted pre-tax income decreased 11% to $1.21 billion
Insights
AIG delivered a strong third quarter with notable improvements in key metrics.
The General Insurance segment shows resilience with
The company's financial strength is highlighted by a healthy
The catastrophe loss performance is particularly noteworthy, with total charges of
North America Commercial Lines' growth of
The favorable prior year development of
-
Strong General Insurance net premiums written of
, a decrease of$6.4 billion 1% on a reported basis, or an increase of6% on a comparable basis*† -
Global Commercial Lines net premiums written of
, a decrease of$4.5 billion 2% on a reported basis, or an increase of7% on a comparable basis†, led by excellent growth in North America Commercial Lines of11% † -
Outstanding new business written in Global Commercial Lines of
, growing$1.1 billion 9% year-over-year -
Combined ratio was
92.6% ; Accident year combined ratio, as adjusted* (AYCR) was88.3% -
Net income per diluted share was
, compared to$0.71 in the prior year quarter, which still included Corebridge’s consolidated results$2.81 -
Adjusted after-tax income* (AATI) per diluted share was
, an increase of$1.23 18% from the prior year quarter, or31% on a comparable basis† -
Returned approximately
of capital to shareholders in the third quarter through$1.8 billion of stock repurchases and$1.5 billion of dividends$254 million
AIG Chairman & Chief Executive Officer Peter Zaffino said: “AIG delivered excellent third quarter financial results with strong profitability and growth across our businesses highlighting the quality of the underwriting portfolio and our ability to deliver consistent earnings. The adjusted after-tax income per diluted share was
“We continued to execute on our capital commitments with repurchases of
“We achieved meaningful growth this quarter, led by our Global Commercial business. Third quarter net premiums written grew
“We marked another quarter of excellent underwriting results, building on top of outstanding performance over the past few years. The third quarter accident year combined ratio, as adjusted was
“Through 2024 and beyond, we remain incredibly focused on underwriting excellence and executing on AIG Next. We have made substantial progress over the last several years to improve the financial strength of AIG. I want to thank our clients, partners and stakeholders for their trust in us, which is a direct result of the outstanding risk expertise and claims services provided by our dedicated colleagues.”
* Refers to financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Comment on Regulation G and Non-GAAP Financial Measures.
† Net premiums written on a comparable basis reflects year-over-year comparison on a constant dollar basis adjusted for the sale of Validus Re in 2023. AATI, Adjusted pre-tax income (APTI), underwriting income, net investment income and ratios on a comparable basis reflect year-over-year comparisons adjusted for the sale of Validus Re in 2023. Refer to pages 17, 20 and 21 for more detail on selected financial measures.
FINANCIAL SUMMARY
|
Three Months Ended September 30, |
|||||||
($ and shares in millions, except per share amounts) |
|
2023 |
|
|
|
2024 |
|
|
Income attributable to AIG common shareholders from continuing operations |
$ |
694 |
|
$ |
481 |
|
||
Net income per diluted share from continuing operations |
$ |
0.97 |
|
$ |
0.74 |
|
||
|
|
|
||||||
Net income attributable to AIG common shareholders |
$ |
2,020 |
|
$ |
459 |
|
||
Net income per diluted share attributable to AIG common shareholders |
$ |
2.81 |
|
$ |
0.71 |
|
||
|
|
|
||||||
Net investment income |
$ |
856 |
|
$ |
973 |
|
||
Net investment income, APTI basis |
|
792 |
|
|
897 |
|
||
|
|
|
||||||
Adjusted pre-tax income (loss) |
$ |
1,089 |
|
$ |
1,067 |
|
||
General Insurance |
|
1,367 |
|
|
1,210 |
|
||
Other Operations |
|
(278 |
) |
|
(143 |
) |
||
|
|
|
||||||
Adjusted after-tax income attributable to AIG common shareholders |
$ |
746 |
|
$ |
798 |
|
||
Adjusted after-tax income per diluted share attributable to AIG common shareholders |
$ |
1.04 |
|
$ |
1.23 |
|
||
|
|
|
||||||
Weighted average common shares outstanding - diluted |
|
718.7 |
|
|
647.4 |
|
||
|
|
|
||||||
Return on equity |
|
19.8 |
% |
|
4.1 |
% |
||
Adjusted return on equity |
|
5.3 |
% |
|
6.8 |
% |
||
Return on tangible equity |
|
8.1 |
% |
|
7.8 |
% |
||
Core operating return on equity |
|
8.6 |
% |
|
9.2 |
% |
||
|
|
|
||||||
Book value per share |
$ |
56.06 |
|
$ |
71.46 |
|
||
Adjusted book value per share |
$ |
81.32 |
|
$ |
73.90 |
|
||
Tangible book value per share |
$ |
50.69 |
|
$ |
65.37 |
|
||
Core operating book value per share |
$ |
48.92 |
|
$ |
54.68 |
|
||
|
|
|
||||||
Common shares outstanding (in millions) |
|
704.6 |
|
|
630.3 |
|
For the third quarter of 2024, net income attributable to AIG common shareholders was
AATI was
Total net investment income for the third quarter of 2024 was
In the third quarter of 2024, AIG returned approximately
Book value per share was
On November 4, 2024, the AIG Board of Directors declared a quarterly cash dividend on AIG common stock of
Corebridge Financial, Inc. (Corebridge) accounting treatment after June 9, 2024: (i) AIG elected the fair value option and, after that date, reflects its retained interest in Corebridge as an equity method investment in other invested assets in AIG's Condensed Consolidated Balance Sheets using Corebridge’s stock price as its fair value, (ii) dividends received from Corebridge and changes in its stock price are recognized in net investment income in AIG’s Condensed Consolidated Financial Statements, and (iii) AIG’s adjusted pre-tax income includes Corebridge dividends and excludes changes in the fair value of Corebridge’s stock price. The historical financial results of Corebridge, for all periods presented, are reflected in AIG’s Condensed Consolidated Financial Statements as discontinued operations in accordance with generally accepted accounting principles in
GENERAL INSURANCE
|
Three Months Ended September 30, |
|
|
|
|||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
|
Change |
||
Gross premiums written |
$ |
8,870 |
|
|
$ |
8,635 |
|
|
(3 |
)% |
|
Net premiums written |
$ |
6,462 |
|
|
$ |
6,380 |
|
|
(1 |
)% |
|
Underwriting income (loss) |
$ |
611 |
|
|
$ |
437 |
|
|
(28 |
)% |
|
|
|
|
|
|
|
||||||
Net investment income, APTI basis |
$ |
756 |
|
|
$ |
773 |
|
|
2 |
% |
|
Adjusted pre-tax income |
$ |
1,367 |
|
|
$ |
1,210 |
|
|
(11 |
)% |
|
|
|
|
|
|
|
||||||
Underwriting ratios: |
|
|
|
|
|
||||||
General Insurance (GI) CR |
|
90.5 |
|
|
|
92.6 |
|
|
2.1 |
pts |
|
GI Loss ratio |
|
59.6 |
|
|
|
60.7 |
|
|
1.1 |
|
|
Less: impact on loss ratio |
|
|
|
|
|
||||||
Catastrophe losses and reinstatement premiums |
|
(6.9 |
) |
|
|
(6.9 |
) |
|
— |
|
|
Prior year development, net of reinsurance and prior year premiums |
|
2.7 |
|
|
|
2.6 |
|
|
(0.1 |
) |
|
GI Accident year loss ratio, as adjusted |
|
55.4 |
|
|
|
56.4 |
|
|
1.0 |
|
|
GI Expense ratio |
|
30.9 |
|
|
|
31.9 |
|
|
1.0 |
|
|
GI Accident year combined ratio, as adjusted |
|
86.3 |
|
|
|
88.3 |
|
|
2.0 |
pts |
|
|
|
|
|
|
|
||||||
Comparable Basis†: |
|
|
|
|
|
||||||
Net premiums written |
$ |
6,018 |
|
|
$ |
6,380 |
|
|
6 |
% |
|
General Insurance (GI) CR |
|
90.2 |
|
|
|
92.6 |
|
|
2.4 |
pts |
|
GI Accident year combined ratio, as adjusted |
|
86.9 |
|
|
|
88.3 |
|
|
1.4 |
pts |
-
General Insurance APTI of
decreased$1.2 billion 11% from the prior year quarter, largely due to the Validus Re divestiture in 2023, or5% on a comparable basis†, driven by lower underwriting income, partially offset by higher net investment income. -
Third quarter 2024 net premiums written (NPW) of
declined$6.4 billion 1% from the prior year quarter on a reported basis primarily as a result of the Validus Re divestiture, but increased6% on a comparable basis†, driven by7% growth in Global Commercial and3% growth in Global Personal Insurance. -
Underwriting income was
, a$437 million 28% decrease year-over-year including Validus Re, or a21% decrease on a comparable basis†, due principally to higher catastrophe charges and lower favorable prior year development (PYD), net of reinsurance and prior year premiums. -
Total catastrophe-related charges were
, representing 6.9 loss ratio points, of which$417 million was in$324 million North America with losses predominantly from windstorms and hailstorms, and was in International.$93 million -
Favorable PYD, net of reinsurance and prior year premiums, was
, representing a 2.6 point loss ratio benefit. The favorable PYD was largely driven by favorable development on short-tail lines in Global Specialty and$165 million U.S. Property and Specialty Risks which have performed extremely well and the amortization benefit related to adverse development cover. The strong level of favorable development in those lines was partially offset by unfavorable development inU.S. Excess Casualty andUK /Europe Casualty and Financial Lines. -
The combined ratio was
92.6% , compared to90.2% in the prior year quarter on a comparable basis†. The AYCR was88.3% , compared to86.9% in the prior year quarter on a comparable basis†.
GENERAL INSURANCE -
|
Three Months Ended September 30, |
|
|
|
|||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
|
Change |
||
Net premiums written |
$ |
2,544 |
|
$ |
2,445 |
|
(4 |
)% |
|||
Underwriting income (loss) |
$ |
292 |
|
$ |
96 |
|
(67 |
)% |
|||
|
|
|
|
|
|
||||||
Underwriting ratios: |
|
|
|
|
|
||||||
North America Commercial Lines CR |
|
88.9 |
|
|
95.5 |
|
6.6 |
pts |
|||
North America Commercial Lines AYCR, as adjusted |
|
83.0 |
|
|
85.1 |
|
2.1 |
pts |
|||
|
|
|
|
|
|
||||||
Comparable Basis†: |
|
|
|
|
|
||||||
Net premiums written |
$ |
2,198 |
|
$ |
2,445 |
|
11 |
% |
|||
North America Commercial Lines CR |
|
88.0 |
|
|
95.5 |
|
7.5 |
pts |
|||
North America Commercial Lines AYCR, as adjusted |
|
83.4 |
|
|
85.1 |
|
1.7 |
pts |
-
North America Commercial Lines NPW declined
4% from the prior year quarter as a result of the 2023 divestitures, but increased11% on a comparable basis†. The growth was led by Retail Casualty and Lexington Insurance, benefiting from robust new business production, which increased22% year-over-year, strong retention and continued positive rate trends. -
The combined ratio was
95.5% and the AYCR was85.1% in the third quarter. On a comparable basis†, the accident year loss ratio, as adjusted* of61.8% increased 250 basis points from the prior year quarter. This was driven by a large closeout transaction, which benefitted the overall combined ratio but created a 70 basis point headwind within the loss ratio, as well as a favorable actual vs. expected loss experience in the prior year quarter driven by strong property rate increases that resulted in a headwind of approximately 180 basis points in the year-over-year comparison.
GENERAL INSURANCE -
|
Three Months Ended September 30, |
|
|||||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
Change |
|||
Net premiums written |
$ |
607 |
|
|
$ |
632 |
|
4 |
% |
||
Underwriting income (loss) |
$ |
(57 |
) |
|
$ |
(59 |
) |
(4 |
)% |
||
|
|
|
|
|
|||||||
Underwriting ratios: |
|
|
|
|
|||||||
North America Personal Insurance CR |
|
113.0 |
|
|
|
111.5 |
|
(1.5 |
) pts |
||
North America Personal Insurance AYCR, as adjusted |
|
108.4 |
|
|
|
103.9 |
|
(4.5 |
) pts |
-
North America Personal Insurance NPW grew
4% from the prior year quarter, primarily driven by growth in High Net Worth, resulting from positive rate change and new business production. -
The combined ratio was
111.5% , compared to113.0% in the prior year quarter. The AYCR was103.9% , compared to108.4% in the prior year. The improvement was driven by a lower AYLR, partially offset by higher expense ratio.
GENERAL INSURANCE - INTERNATIONAL COMMERCIAL LINES
|
Three Months Ended September 30, |
|
|
|
|||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
|
Change |
||
Net premiums written |
$ |
2,038 |
$ |
2,052 |
1 |
% |
|||||
Underwriting income (loss) |
$ |
339 |
$ |
320 |
(6 |
)% |
|||||
|
|
|
|
|
|||||||
Underwriting ratios: |
|
|
|
|
|||||||
International Commercial Lines CR |
|
83.4 |
|
84.3 |
0.9 |
pts |
|||||
International Commercial Lines AYCR, as adjusted |
|
79.7 |
|
83.4 |
3.7 |
pts |
|||||
|
|
|
|
|
|||||||
Comparable Basis†: |
|
|
|
|
|||||||
Net premiums written |
$ |
1,996 |
$ |
2,052 |
3 |
% |
|||||
International Commercial Lines CR |
|
83.0 |
|
84.3 |
1.3 |
pts |
|||||
International Commercial Lines AYCR, as adjusted |
|
79.7 |
|
83.4 |
3.7 |
pts |
-
International Commercial Lines NPW increased
1% from the prior year quarter, or3% on a comparable basis†, attributable to growth in Global Specialty, Property and Talbot, primarily driven by strong new business production and retention, partially offset by a decrease in Financial Lines due to continued pricing pressure. -
The combined ratio was
84.3% , compared to83.4% in the prior year quarter. The AYCR was83.4% , compared to79.7% in the prior year quarter.
GENERAL INSURANCE - INTERNATIONAL PERSONAL INSURANCE
|
Three Months Ended September 30, |
|
|
|
|||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
|
Change |
||
Net premiums written |
$ |
1,273 |
$ |
1,251 |
(2 |
)% |
|||||
Underwriting income (loss) |
$ |
37 |
$ |
80 |
116 |
% |
|||||
|
|
|
|
||||||||
Underwriting ratios: |
|
|
|
||||||||
International Personal Insurance CR |
|
97.2 |
|
93.7 |
(3.5 |
) pts |
|||||
International Personal Insurance AYCR, as adjusted |
|
95.9 |
|
95.4 |
(0.5 |
) pts |
|||||
|
|
|
|
||||||||
Comparable Basis†: |
|
|
|
||||||||
Net premiums written |
$ |
1,217 |
|
1,251 |
3 |
% |
-
International Personal Insurance NPW declined
2% from the prior year quarter, but grew3% on a comparable basis†, largely driven by growth in Personal Auto. -
The combined ratio was
93.7% , compared to97.2% in the prior year quarter. The AYCR was95.4% , compared to95.9% in the prior year quarter.
OTHER OPERATIONS
|
Three Months Ended September 30, |
|
|
||||||||
($ in millions) |
|
2023 |
|
|
|
2024 |
|
|
Change |
||
Net investment income |
$ |
45 |
|
$ |
125 |
|
178 |
% |
|||
General operating expenses |
|
(179 |
) |
|
(150 |
) |
16 |
|
|||
Interest expense |
|
(133 |
) |
|
(111 |
) |
17 |
|
|||
All other income (expenses) |
|
(4 |
) |
|
(5 |
) |
(25 |
) |
|||
Adjusted pre-tax loss before consolidation and eliminations |
$ |
(271 |
) |
$ |
(141 |
) |
48 |
|
|||
Total consolidation and eliminations |
|
(7 |
) |
|
(2 |
) |
71 |
|
|||
Adjusted pre-tax loss |
$ |
(278 |
) |
$ |
(143 |
) |
49 |
% |
-
Other Operations adjusted pre-tax loss improved
from the prior year quarter, primarily due to higher net investment income, lower general operating expenses (GOE) and lower interest expenses.$135 million -
Net investment income increased
from the prior year quarter due to dividend income received from Corebridge in the third quarter of 2024 and higher income on parent short-term investments due to higher yields and higher balances.$80 million -
GOE improved
from the prior year quarter or$29 million sequentially from the second quarter, reflecting the benefits from AIG Next.$40 million -
AIG interest expense decreased
, primarily driven by debt reductions over the last year.$22 million
CONFERENCE CALL
AIG will host a conference call tomorrow, Tuesday, November 5, 2024 at 8:30 a.m. ET to review these results. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of www.aig.com. A replay will be available after the call at the same location.
Additional supplementary financial data is available in the Investors section at www.aig.com.
Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future Results
Certain statements in this press release and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking statements” within the meaning of the
All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation:
-
the impact of adverse developments affecting economic conditions in the markets in which we operate in the
U.S. and globally, including adverse developments related to financial market conditions, macroeconomic trends, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, an economic slowdown or recession, any potentialU.S. federal government shutdown and geopolitical events or conflicts, including the conflict betweenRussia andUkraine and the conflict inIsrael and the surrounding areas; - the occurrence of catastrophic events, both natural and man-made, including the effects of climate change, geopolitical events and conflicts and civil unrest;
- disruptions in the availability or accessibility of our or a third party’s information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches, or infrastructure vulnerabilities;
- our ability to effectively implement restructuring initiatives and potential cost-savings opportunities;
- our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives;
- the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;
- our ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof;
- concentrations in our investment portfolios, including our continuing equity market exposure to Corebridge Financial, Inc. (Corebridge);
- our reliance on third-party investment managers;
- changes in the valuation of our investments, including Corebridge common stock;
- our reliance on third parties to provide certain business and administrative services;
- availability of adequate reinsurance or access to reinsurance on acceptable terms;
- changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;
- concentrations of our insurance, reinsurance and other risk exposures;
- nonperformance or defaults by counterparties;
- our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures, including with respect to business continuity and disaster recovery plans;
- difficulty in marketing and distributing products through current and future distribution channels;
- actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries;
- changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;
-
the effects of sanctions, including those related to the conflict in the
Middle East and betweenRussia andUkraine , and the failure to comply with those sanctions; - our ability to address evolving stakeholder expectations and regulatory requirements with respect to environmental, social and governance matters;
- changes to sources of or access to liquidity;
- changes in accounting principles and financial reporting requirements or their applicability to us;
-
the effects of changes in laws and regulations, including those relating to cybersecurity and data privacy, and the regulation of insurance in the
U.S. and other countries in which we operate; -
changes to tax laws in the
U.S. and other countries in which we operate; - the outcome of significant legal, regulatory or governmental proceedings;
- our ability to effectively execute on sustainability targets and standards;
- the impact of epidemics, pandemics and other public health crises and responses thereto; and
-
such other factors discussed in:
- Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (which will be filed with the Securities and Exchange Commission) (SEC) and Part II, Item 1A, Risk Factors in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024;
- Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A of the 2023 Annual Report; and
- our other filings with the SEC.
Forward-looking statements speak only as of the date of this press release, or in the case of any document incorporated by reference, the date of that document. AIG is not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in any forward-looking statements is disclosed from time to time in our filings with the SEC.
COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES
Throughout this press release, including the financial highlights, AIG presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements AIG uses are “Non-GAAP financial measures” under SEC rules and regulations. GAAP is the acronym for generally accepted accounting principles in
Unless otherwise mentioned or unless the context indicates otherwise, we use the terms “AIG,” “we,” “us” and “our” to refer to American International Group, Inc., a
AIG uses the following operating performance measures because AIG believes they enhance the understanding of the underlying profitability of continuing operations and trends of AIG’s business segments. AIG believes they also allow for more meaningful comparisons with AIG’s insurance competitors. When AIG uses these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis.
Book value per share, excluding investments related cumulative unrealized gains and losses in accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re. Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common equity) by total common shares outstanding.
Book Value per share, excluding Goodwill, Value of business acquired (VOBA), Value of distribution channel acquired (VODA) and Other intangible assets (Tangible book value per share) is used to provide a useful measure of the realizable shareholder value on a per share basis. Tangible book value per share is derived by dividing Total AIG common shareholders’ equity, excluding intangible assets (AIG tangible common shareholders’ equity) by total common shares outstanding.
Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG’s ownership interest in Corebridge (Core operating book value per share) is used to show the amount of our net worth on a per share basis after eliminating Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude only the portion of DTA representing
Total debt and preferred stock to total adjusted capital ratio is used to show the AIG’s debt leverage adjusted for Investments AOCI and is derived by dividing total debt and preferred stock by total capital excluding Investments AOCI (Total adjusted capital). We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re.
Return on equity – Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI. We believe this measure is useful to investors because it eliminates fair value of investments which can fluctuate significantly from period to period due to changes in market conditions. Adjusted return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG adjusted common shareholders’ equity.
Return on Equity – Adjusted After-tax Income, Excluding Goodwill, VOBA, VODA and Other Intangible assets (Return on tangible equity) is used to show the return on AIG tangible common shareholder’s equity, which we believe is a useful measure of realizable shareholder value. We exclude Goodwill, VOBA, VODA and Other intangible assets from AIG common shareholders’ equity to derive AIG tangible common shareholders’ equity. Return on AIG tangible common equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG tangible common equity.
Return on equity – Adjusted after-tax income excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (Core operating return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude only the portion of DTA representing
Adjusted revenues exclude Net realized gains (losses), income from non-operating litigation settlements (included in Other income for GAAP purposes) and income from elimination of the International reporting lag. Adjusted revenues is a GAAP measure for our segments.
Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax. This definition is consistent across our segments. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include the following:
- changes in the fair values of equity securities and AIG's ownership interest in Corebridge;
- net investment income on Fortitude Re funds withheld assets;
- net realized gains and losses on Fortitude Re funds withheld assets;
- loss (gain) on extinguishment of debt;
- all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income);
- income or loss from discontinued operations;
- net loss reserve discount benefit (charge);
- pension expense related to lump sum payments to former employees;
- net gain or loss on divestitures and other;
- non-operating litigation reserves and settlements;
- restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;
- the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain;
- integration and transaction costs associated with acquiring or divesting businesses;
- losses from the impairment of goodwill;
- non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles; and
- income from elimination of the international reporting lag.
Adjusted After-tax Income attributable to AIG common shareholders (AATI) is derived by excluding the tax effected APTI adjustments described above, dividends on preferred stock and preferred stock redemption premiums, noncontrolling interest on net realized gains (losses), other non-operating expenses and the following tax items from net income attributable to AIG:
- deferred income tax valuation allowance releases and charges;
- changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and
- net tax charge related to the enactment of the Tax Cuts and Jobs Act.
See page 15 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures of underwriting performance. These ratios are relative measurements that describe, for every
Accident year loss and Accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio, ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses (CATs) and related reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting. Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of
Underwriting ratios are computed as follows:
- Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)
- Acquisition ratio = Total acquisition expenses ÷ NPE
- General operating expense ratio = General operating expenses ÷ NPE
- Expense ratio = Acquisition ratio + General operating expense ratio
- Combined ratio = Loss ratio + Expense ratio
- CATs and reinstatement premiums ratio = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes] – Loss ratio
- Accident year loss ratio, as adjusted (AYLR ex-CAT) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums + Adjustment for ceded premium under reinsurance contracts related to prior accident years]
- Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR ex-CAT + Expense ratio
- Prior year development net of reinsurance and prior year premiums ratio = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs and reinstatement premiums ratio.
Results from discontinued operations, including Corebridge, are excluded from all of these measures.
American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners.
AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation ($ in millions, except per common share data) |
||||||||||||||||||||||||||
Reconciliations of Adjusted Pre-tax and After-tax Income |
||||||||||||||||||||||||||
|
Three Months Ended September 30, |
|||||||||||||||||||||||||
|
2023 |
|
2024 |
|||||||||||||||||||||||
|
|
|
|
Total Tax |
|
Non- |
|
|
|
|
|
|
Total Tax |
|
Non- |
|
|
|||||||||
|
|
|
|
(Benefit) |
|
controlling |
|
After |
|
|
|
|
(Benefits) |
|
controlling |
|
After |
|||||||||
|
|
Pre-tax |
|
Charge |
|
Interests(c) |
|
Tax |
|
|
Pre-tax |
|
Charge |
|
Interests(c) |
|
Tax |
|||||||||
Pre-tax income/net income, including noncontrolling interests |
$ |
1,100 |
|
$ |
399 |
|
$ |
— |
|
$ |
2,747 |
|
|
$ |
649 |
|
$ |
168 |
|
$ |
— |
|
$ |
457 |
|
|
Noncontrolling interests |
|
— |
|
|
— |
|
|
(720 |
) |
|
(720 |
) |
|
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|
Pre-tax income/net income attributable to AIG |
|
1,100 |
|
|
399 |
|
|
(720 |
) |
|
2,027 |
|
|
|
649 |
|
|
168 |
|
|
2 |
|
|
459 |
|
|
Dividends on preferred stock and preferred stock redemption premiums |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
— |
|
|||||||
Net income attributable to AIG common shareholders |
|
|
|
|
|
|
|
2,020 |
|
|
|
|
|
|
|
|
|
459 |
|
|||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Changes in uncertain tax positions and other tax adjustments |
|
|
|
(57 |
) |
|
— |
|
|
57 |
|
|
|
|
|
3 |
|
|
— |
|
|
(3 |
) |
|||
Deferred income tax valuation allowance (releases) charges |
|
|
|
(5 |
) |
|
— |
|
|
5 |
|
|
|
|
|
9 |
|
|
— |
|
|
(9 |
) |
|||
Changes in the fair values of equity securities and AIG's investment in Corebridge |
|
(31 |
) |
|
(6 |
) |
|
— |
|
|
(25 |
) |
|
|
(25 |
) |
|
(5 |
) |
|
— |
|
|
(20 |
) |
|
Loss on extinguishment of debt and preferred stock redemption premiums |
|
21 |
|
|
4 |
|
|
— |
|
|
17 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Net investment income on Fortitude Re funds withheld assets |
|
(29 |
) |
|
(6 |
) |
|
— |
|
|
(23 |
) |
|
|
(51 |
) |
|
(11 |
) |
|
— |
|
|
(40 |
) |
|
Net realized losses on Fortitude Re funds withheld assets |
|
3 |
|
|
— |
|
|
— |
|
|
3 |
|
|
|
18 |
|
|
4 |
|
|
— |
|
|
14 |
|
|
Net realized gains on Fortitude Re funds withheld embedded derivative |
|
(57 |
) |
|
(12 |
) |
|
— |
|
|
(45 |
) |
|
|
157 |
|
|
33 |
|
|
— |
|
|
124 |
|
|
Net realized (gains) losses(a) |
|
190 |
|
|
42 |
|
|
— |
|
|
148 |
|
|
|
(7 |
) |
|
(27 |
) |
|
— |
|
|
20 |
|
|
(Income) loss from discontinued operations |
|
|
|
|
|
|
|
(2,046 |
) |
|
|
|
|
|
|
|
|
24 |
|
|||||||
Net (gain) loss on divestitures and other |
|
(101 |
) |
|
(21 |
) |
|
— |
|
|
(80 |
) |
|
|
8 |
|
|
28 |
|
|
— |
|
|
(20 |
) |
|
Non-operating litigation reserves and settlements |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements |
|
(75 |
) |
|
(16 |
) |
|
— |
|
|
(59 |
) |
|
|
126 |
|
|
27 |
|
|
— |
|
|
99 |
|
|
Net loss reserve discount charge |
|
5 |
|
|
1 |
|
|
— |
|
|
4 |
|
|
|
29 |
|
|
6 |
|
|
— |
|
|
23 |
|
|
Pension expense related to lump sum payments to former employees |
|
8 |
|
|
2 |
|
|
— |
|
|
6 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Integration and transaction costs associated with acquiring or divesting businesses |
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
|
22 |
|
|
5 |
|
|
— |
|
|
17 |
|
|
Restructuring and other costs(d) |
|
49 |
|
|
10 |
|
|
— |
|
|
39 |
|
|
|
137 |
|
|
28 |
|
|
— |
|
|
109 |
|
|
Non-recurring costs related to regulatory or accounting changes |
|
4 |
|
|
1 |
|
|
— |
|
|
3 |
|
|
|
4 |
|
|
1 |
|
|
— |
|
|
3 |
|
|
Noncontrolling interests(c) |
|
|
|
|
|
720 |
|
|
720 |
|
|
|
|
|
|
|
(2 |
) |
|
(2 |
) |
|||||
Adjusted pre-tax income/Adjusted after-tax income attributable to AIG common shareholders |
$ |
1,089 |
|
$ |
336 |
|
$ |
— |
|
$ |
746 |
|
|
$ |
1,067 |
|
$ |
269 |
|
$ |
— |
|
$ |
798 |
|
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
||||||||||||||||||||||||||
Reconciliations of Adjusted Pre-tax and After-tax Income |
||||||||||||||||||||||||||
|
Nine Months Ended September 30, |
|||||||||||||||||||||||||
|
2023 |
|
2024 |
|||||||||||||||||||||||
|
|
|
|
Total Tax |
|
Non- |
|
|
|
|
|
|
Total Tax |
|
Non- |
|
|
|||||||||
|
|
|
|
(Benefits) |
|
controlling |
|
After |
|
|
|
|
(Benefits) |
|
controlling |
|
After |
|||||||||
|
|
Pre-tax |
|
Charge |
|
Interests(c) |
|
Tax |
|
|
Pre-tax |
|
Charge |
|
Interests(c) |
|
Tax |
|||||||||
Pre-tax income/net income (loss), including noncontrolling interests |
$ |
2,388 |
|
$ |
509 |
|
$ |
— |
|
$ |
4,351 |
|
|
$ |
2,324 |
|
$ |
571 |
|
$ |
— |
|
$ |
(1,827 |
) |
|
Noncontrolling interests |
|
— |
|
|
— |
|
|
(801 |
) |
|
(801 |
) |
|
|
— |
|
|
— |
|
|
(475 |
) |
|
(475 |
) |
|
Pre-tax income/net income (loss) attributable to AIG |
|
2,388 |
|
|
509 |
|
|
(801 |
) |
|
3,550 |
|
|
|
2,324 |
|
|
571 |
|
|
(475 |
) |
|
(2,302 |
) |
|
Dividends on preferred stock and preferred stock redemption premiums |
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
|
|
22 |
|
|||||||
Net income (loss) attributable to AIG common shareholders |
|
|
|
|
|
|
|
3,528 |
|
|
|
|
|
|
|
|
|
(2,324 |
) |
|||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Changes in uncertain tax positions and other tax adjustments |
|
— |
|
|
175 |
|
|
— |
|
|
(175 |
) |
|
|
— |
|
|
8 |
|
|
— |
|
|
(8 |
) |
|
Deferred income tax valuation allowance (releases) charges |
|
— |
|
|
(51 |
) |
|
— |
|
|
51 |
|
|
|
— |
|
|
15 |
|
|
— |
|
|
(15 |
) |
|
Changes in the fair values of equity securities and AIG's investment in Corebridge |
|
(93 |
) |
|
(19 |
) |
|
— |
|
|
(74 |
) |
|
|
(172 |
) |
|
(36 |
) |
|
— |
|
|
(136 |
) |
|
Loss on extinguishment of debt and preferred stock redemption premiums |
|
21 |
|
|
4 |
|
|
— |
|
|
17 |
|
|
|
1 |
|
|
— |
|
|
— |
|
|
16 |
|
|
Net investment income on Fortitude Re funds withheld assets |
|
(106 |
) |
|
(22 |
) |
|
— |
|
|
(84 |
) |
|
|
(123 |
) |
|
(26 |
) |
|
— |
|
|
(97 |
) |
|
Net realized losses on Fortitude Re funds withheld assets |
|
64 |
|
|
13 |
|
|
— |
|
|
51 |
|
|
|
38 |
|
|
8 |
|
|
— |
|
|
30 |
|
|
Net realized (gains) losses on Fortitude Re funds withheld embedded derivative |
|
25 |
|
|
5 |
|
|
— |
|
|
20 |
|
|
|
158 |
|
|
33 |
|
|
— |
|
|
125 |
|
|
Net realized losses(a) |
|
573 |
|
|
131 |
|
|
— |
|
|
442 |
|
|
|
234 |
|
|
28 |
|
|
— |
|
|
206 |
|
|
(Income) loss from discontinued operations |
|
|
|
|
|
|
|
(2,472 |
) |
|
|
|
|
|
|
|
|
3,580 |
|
|||||||
Net gain on divestitures and other |
|
(89 |
) |
|
(19 |
) |
|
— |
|
|
(70 |
) |
|
|
(94 |
) |
|
12 |
|
|
— |
|
|
(106 |
) |
|
Non-operating litigation reserves and settlements |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements |
|
(112 |
) |
|
(24 |
) |
|
— |
|
|
(88 |
) |
|
|
66 |
|
|
14 |
|
|
— |
|
|
52 |
|
|
Net loss reserve discount charge |
|
85 |
|
|
18 |
|
|
— |
|
|
67 |
|
|
|
131 |
|
|
27 |
|
|
— |
|
|
104 |
|
|
Pension expense related to lump sum payments to former employees |
|
62 |
|
|
13 |
|
|
— |
|
|
49 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Integration and transaction costs associated with acquiring or divesting businesses |
|
10 |
|
|
2 |
|
|
— |
|
|
8 |
|
|
|
37 |
|
|
8 |
|
|
— |
|
|
29 |
|
|
Restructuring and other costs(d) |
|
264 |
|
|
55 |
|
|
— |
|
|
209 |
|
|
|
630 |
|
|
132 |
|
|
— |
|
|
498 |
|
|
Non-recurring costs related to regulatory or accounting changes |
|
19 |
|
|
4 |
|
|
— |
|
|
15 |
|
|
|
15 |
|
|
3 |
|
|
— |
|
|
12 |
|
|
Net impact from elimination of international reporting lag(b) |
|
(12 |
) |
|
(3 |
) |
|
— |
|
|
(9 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Noncontrolling interests(c) |
|
|
|
|
|
801 |
|
|
801 |
|
|
|
|
|
|
|
475 |
|
|
475 |
|
|||||
Adjusted pre-tax income/Adjusted after-tax income attributable to AIG common shareholders |
$ |
3,099 |
|
$ |
791 |
|
$ |
— |
|
$ |
2,286 |
|
|
$ |
3,245 |
|
$ |
797 |
|
$ |
— |
|
$ |
2,441 |
|
(a) |
|
Includes all Net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets. |
(b) |
|
Effective in the quarter ended December 31, 2022, the foreign property and casualty subsidiaries report on a calendar year ending December 31. We determined that the effect of not retroactively applying this change was immaterial to our Consolidated Financial Statements for the current and prior periods. Therefore, we reported the cumulative effect of the change in accounting principle within the Consolidated Statements of Income (Loss) for the year ended December 31, 2022 and did not retrospectively apply the effects of this change to prior periods. |
(c) |
|
Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge is consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in the Income (loss) from discontinued operations, net of income taxes. |
(d) |
|
In the three and nine months ended September 30, 2024, restructuring and other costs increased primarily as a result of employee-related costs, including severance, and real estate impairment charges. |
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
|||||||||||||||
Summary of Key Financial Metrics |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|||||||||||
Earnings per common share: |
|
2023 |
|
2024 |
|
% Inc. (Dec.) |
|
|
2023 |
|
2024 |
|
% Inc. (Dec.) |
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations |
$ |
0.97 |
$ |
0.75 |
|
(22.7 |
)% |
|
$ |
2.56 |
$ |
2.62 |
|
2.3 |
% |
Income (loss) from discontinued operations |
|
1.86 |
|
(0.03 |
) |
NM |
|
|
|
2.30 |
|
(6.13 |
) |
NM |
|
Net income (loss) attributable to AIG common shareholders |
$ |
2.83 |
$ |
0.72 |
|
(74.6 |
) |
|
$ |
4.86 |
$ |
(3.51 |
) |
NM |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income from continuing operations |
$ |
0.97 |
$ |
0.74 |
|
(23.7 |
) |
|
$ |
2.54 |
$ |
2.59 |
|
2.0 |
|
Income (loss) from discontinued operations |
|
1.84 |
|
(0.03 |
) |
NM |
|
|
|
2.29 |
|
(6.07 |
) |
NM |
|
Net income (loss) attributable to AIG common shareholders |
$ |
2.81 |
$ |
0.71 |
|
(74.7 |
) |
|
$ |
4.83 |
$ |
(3.48 |
) |
NM |
|
Adjusted after-tax income attributable to AIG common shareholders per diluted share |
$ |
1.04 |
$ |
1.23 |
|
18.3 |
% |
|
$ |
3.13 |
$ |
3.66 |
|
16.9 |
% |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
712.6 |
|
641.6 |
|
|
|
|
725.6 |
|
661.7 |
|
|
|
|
Diluted |
|
718.7 |
|
647.4 |
|
|
|
|
731.0 |
|
667.4 |
|
|
|
Reconciliation of Adjusted After-tax Income, Comparable Basis |
||||||
|
Three Months Ended September 30, |
|||||
|
|
2023 |
|
|
|
2024 |
Adjusted after-tax income attributable to AIG common shareholders, as reported |
$ |
746 |
|
|
$ |
798 |
Validus Re |
|
(68 |
) |
|
|
— |
Adjusted after-tax income attributable to AIG common shareholders, comparable basis |
|
678 |
|
|
|
798 |
Adjusted after-tax income attributable to AIG common shareholders per diluted share, comparable basis |
|
0.94 |
|
|
|
1.23 |
Reconciliation of Net Investment Income |
|||||||
|
|
Three Months Ended |
|||||
|
|
September 30, |
|||||
|
|
2023 |
|
|
2024 |
||
Net Investment Income per Consolidated Statements of Operations |
$ |
856 |
|
|
$ |
973 |
|
Changes in the fair values of equity securities and AIG's investment in Corebridge |
|
(31 |
) |
|
|
(25 |
) |
Net investment income on Fortitude Re funds withheld assets |
|
(29 |
) |
|
|
(51 |
) |
Net realized gains (losses) related to economic hedges and other |
|
(4 |
) |
|
|
— |
|
Total Net Investment Income - APTI Basis |
$ |
792 |
|
|
$ |
897 |
|
|
|
|
|
|
|
||
General Insurance Net Investment Income, APTI basis |
$ |
756 |
|
|
$ |
773 |
|
Validus Re |
|
(38 |
) |
|
|
— |
|
General Insurance Net Investment Income, APTI basis, comparable basis |
$ |
718 |
|
|
$ |
773 |
|
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
||||||||||||||||||
Reconciliation of Book Value per Share |
||||||||||||||||||
As of period end: |
September 30, 2023 |
June 30, 2024 |
September 30, 2024 |
|||||||||||||||
Total AIG shareholders' equity |
$ |
39,984 |
|
$ |
44,445 |
|
$ |
45,039 |
|
|||||||||
Less: Preferred equity |
|
485 |
|
|
— |
|
|
— |
|
|||||||||
Total AIG common shareholders' equity (a) |
|
39,499 |
|
|
44,445 |
|
|
45,039 |
|
|||||||||
|
|
|
|
|||||||||||||||
Less: Investments AOCI |
|
(20,771 |
) |
|
(3,460 |
) |
|
(2,074 |
) |
|||||||||
Add: Cumulative unrealized gains and losses related to Fortitude Re Funds withheld assets |
|
(2,973 |
) |
|
(615 |
) |
|
(531 |
) |
|||||||||
Subtotal Investments AOCI |
|
(17,798 |
) |
|
(2,845 |
) |
|
(1,543 |
) |
|||||||||
Total adjusted common shareholders' equity (b) |
$ |
57,297 |
|
$ |
47,290 |
|
$ |
46,582 |
|
|||||||||
|
|
|
|
|||||||||||||||
Less: Intangible assets: |
|
|
|
|||||||||||||||
Goodwill |
|
3,385 |
|
|
3,407 |
|
|
3,453 |
|
|||||||||
Value of distribution channel acquired |
|
149 |
|
|
136 |
|
|
132 |
|
|||||||||
Other intangibles |
|
249 |
|
|
249 |
|
|
249 |
|
|||||||||
Total intangible assets |
|
3,783 |
|
|
3,792 |
|
|
3,834 |
|
|||||||||
Total adjusted tangible common shareholders' equity (c) |
$ |
35,716 |
|
$ |
40,653 |
|
$ |
41,205 |
|
|||||||||
|
|
|
|
|||||||||||||||
Less: AIG's ownership interest in Corebridge |
|
5,829 |
|
|
8,567 |
|
|
8,143 |
|
|||||||||
Less: Investments related AOCI - AIG |
|
(5,490 |
) |
|
(3,460 |
) |
|
(2,074 |
) |
|||||||||
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets - AIG |
|
(717 |
) |
|
(615 |
) |
|
(531 |
) |
|||||||||
Subtotal Investments AOCI - AIG |
|
(4,773 |
) |
|
(2,845 |
) |
|
(1,543 |
) |
|||||||||
Less: Deferred tax assets |
|
3,974 |
|
|
4,059 |
|
|
3,975 |
|
|||||||||
AIG core operating shareholders' equity (d) |
$ |
34,469 |
|
$ |
34,664 |
|
$ |
34,464 |
|
|||||||||
Total common shares outstanding (e) |
|
704.6 |
|
|
649.8 |
|
|
630.3 |
|
|||||||||
As of period end: |
September 30, 2023 |
% Inc. (Dec.) |
June 30, 2024 |
% Inc. (Dec.) |
September 30, 2024 |
|||||||||||||
Book value per share (a÷e) |
$ |
56.06 |
27.5 |
% |
$ |
68.40 |
|
|
4.5 |
% |
$ |
71.46 |
|
|||||
Adjusted book value per share (b÷e) |
|
81.32 |
(9.1 |
) |
|
72.78 |
|
|
1.5 |
|
|
73.90 |
|
|||||
Adjusted tangible book value per share (c÷e) |
|
50.69 |
29.0 |
|
|
62.56 |
|
|
4.5 |
|
|
65.37 |
|
|||||
Core operating book value per share (d÷e) |
|
48.92 |
11.8 |
|
|
53.35 |
|
|
2.5 |
|
|
54.68 |
|
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
||||||||
Reconciliation of Return On Equity |
||||||||
|
Three Months Ended September 30, |
|||||||
|
|
2023 |
|
|
2024 |
|
||
Actual or annualized net income (loss) attributable to AIG common shareholders (a) |
$ |
8,080 |
|
$ |
1,836 |
|
||
Actual or annualized adjusted after-tax income attributable to AIG common shareholders (b) |
$ |
2,984 |
|
$ |
3,192 |
|
||
|
|
|
|
|
||||
Average AIG adjusted common shareholders' equity |
|
|
|
|
||||
Average AIG Common Shareholders' equity (c) |
$ |
40,734 |
|
$ |
44,742 |
|
||
Less: Average investments AOCI |
|
(16,091 |
) |
|
(2,194 |
) |
||
Average adjusted common shareholders' equity (d) |
$ |
56,825 |
|
$ |
46,936 |
|
||
|
|
|
|
|
||||
Average AIG tangible common shareholders' equity |
|
|
|
|
||||
Average AIG Common Shareholders' equity |
$ |
40,734 |
|
$ |
44,742 |
|
||
Less: Average intangibles |
|
3,824 |
|
|
3,813 |
|
||
Average AIG tangible common shareholders' equity (e) |
$ |
36,910 |
|
$ |
40,929 |
|
||
|
|
|
|
|
||||
Average AIG core operating shareholders' equity |
|
|
|
|
||||
Average AIG common shareholders' equity |
$ |
40,734 |
|
$ |
44,742 |
|
||
Less: Average AIG's ownership interest in Corebridge |
|
6,591 |
|
|
8,355 |
|
||
Less: Average investments AOCI - AIG |
|
(4,495 |
) |
|
(2,194 |
) |
||
Less: Average deferred tax assets |
|
4,119 |
|
|
4,017 |
|
||
Average AIG core operating shareholders' equity (f) |
$ |
34,519 |
|
$ |
34,564 |
|
||
|
|
|
|
|
||||
ROE (a÷c) |
|
19.8 |
% |
|
4.1 |
% |
||
Adjusted return on equity (b÷d) |
|
5.3 |
% |
|
6.8 |
% |
||
Return on tangible equity (b÷e) |
|
8.1 |
% |
|
7.8 |
% |
||
Core operating ROE (b÷f) |
|
8.6 |
% |
|
9.2 |
% |
Reconciliation of Total Debt to Total Capital |
|||
|
Three Months Ended |
||
|
September 30, 2024 |
||
Total financial and hybrid debt |
$ |
9,854 |
|
|
|
||
Total capital |
$ |
54,927 |
|
Less non-redeemable noncontrolling interests |
|
34 |
|
Less Investments AOCI |
|
(1,543 |
) |
Total adjusted capital |
$ |
56,436 |
|
|
|
||
Hybrid - debt securities / Total capital |
|
1.7 |
% |
Financial debt / Total capital |
|
16.2 |
|
Total debt / Total capital |
|
17.9 |
% |
Total debt / Total adjusted capital |
|
17.5 |
% |
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
|||||||
Reconciliation of General Insurance Underwriting Income |
|||||||
|
Three Months Ended September 30, |
||||||
|
|
2023 |
|
|
|
2024 |
|
Underwriting income, as reported |
$ |
611 |
|
|
$ |
437 |
|
Validus Re |
|
(60 |
) |
|
|
— |
|
Underwriting income, excluding Validus Re |
$ |
551 |
|
|
$ |
437 |
|
Reconciliation of General Insurance Adjusted Pre-tax Income |
|||||||
|
Three Months Ended September 30, |
||||||
|
|
2023 |
|
|
|
2024 |
|
Adjusted Pre-tax income, as reported |
$ |
1,367 |
|
|
$ |
1,210 |
|
Validus Re |
|
(98 |
) |
|
|
— |
|
Adjusted Pre-tax income, comparable basis |
$ |
1,269 |
|
|
$ |
1,210 |
Reconciliation of Net Premiums Written - Comparable Basis | ||||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
|||||||||||||||||||||
|
|
|
|
North |
|
|
||||||||||||||||
|
|
Global - |
Global - |
America - |
International |
|||||||||||||||||
|
General |
Commercial |
Personal |
Commercial |
Commercial |
Personal |
||||||||||||||||
|
Insurance |
Lines |
Insurance |
Lines |
Lines |
Insurance |
||||||||||||||||
Change in net premiums written |
|
|
|
|
|
|
||||||||||||||||
Increase (decrease) as reported in |
|
(1.3 |
)% |
(1.9 |
)% |
0.2 |
% |
|
(3.9 |
)% |
|
0.7 |
% |
|
(1.7 |
)% |
||||||
Foreign exchange effect |
|
1.3 |
|
0.5 |
|
3.0 |
|
|
0.1 |
|
|
1.0 |
|
|
4.5 |
|
||||||
Validus Re impact |
|
6.0 |
|
8.6 |
|
— |
|
|
15.0 |
|
|
1.1 |
|
|
— |
|
||||||
Increase (decrease) on comparable basis |
|
6.0 |
% |
7.2 |
% |
3.2 |
% |
|
11.2 |
% |
|
2.8 |
% |
|
2.8 |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||
Net premiums written as reported in |
$ |
6,462 |
|
|
|
$ |
2,544 |
|
$ |
2,038 |
|
$ |
1,273 |
|
||||||||
Foreign exchange effect |
|
(79 |
) |
|
|
|
(3 |
) |
|
(20 |
) |
|
(56 |
) |
||||||||
Validus Re impact |
|
(365 |
) |
|
|
|
(343 |
) |
|
(22 |
) |
|
— |
|
||||||||
Net premiums written on comparable basis |
$ |
6,018 |
|
|
|
$ |
2,198 |
|
$ |
1,996 |
|
$ |
1,217 |
|
Reconciliations of Accident Year Loss and Accident Year Combined Ratios, as Adjusted |
||||||
|
|
|
||||
|
Three Months Ended |
|||||
|
September 30, |
|||||
|
2023 |
|
2024 |
|||
Total General Insurance |
|
|
||||
Combined ratio |
90.5 |
|
92.6 |
|
||
Catastrophe losses and reinstatement premiums |
(6.9 |
) |
(6.9 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
2.7 |
|
2.6 |
|
||
Accident year combined ratio, as adjusted |
86.3 |
|
88.3 |
|
||
Validus Re impact |
0.6 |
|
— |
|
||
Accident year combined ratio, as adjusted, comparable basis |
86.9 |
|
88.3 |
|
||
|
|
|
||||
Combined ratio |
90.5 |
|
92.6 |
|
||
Validus Re impact |
(0.3 |
) |
— |
|
||
Combined ratio, comparable basis |
90.2 |
|
92.6 |
|
||
|
|
|
||||
|
|
|
||||
Loss ratio |
63.7 |
|
72.2 |
|
||
Catastrophe losses and reinstatement premiums |
(11.7 |
) |
(13.3 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
5.8 |
|
2.9 |
|
||
Accident year loss ratio, as adjusted |
57.8 |
|
61.8 |
|
||
Validus Re impact |
1.5 |
|
— |
|
||
Accident year loss ratio, as adjusted, comparable basis |
59.3 |
|
61.8 |
|
American International Group, Inc. Selected Financial Data and Non-GAAP Reconciliation (continued) ($ in millions, except per common share data) |
||||||
Reconciliations of Accident Year Loss and Accident Year Combined Ratios, as Adjusted |
||||||
|
|
|
||||
|
Three Months Ended September 30, |
|||||
|
2023 |
|
2024 |
|||
|
|
|
||||
Combined ratio |
88.9 |
|
95.5 |
|
||
Catastrophe losses and reinstatement premiums |
(11.7 |
) |
(13.3 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
5.8 |
|
2.9 |
|
||
Accident year combined ratio, as adjusted |
83.0 |
|
85.1 |
|
||
Validus Re impact |
0.4 |
|
— |
|
||
Accident year combined ratio, as adjusted, comparable basis |
83.4 |
|
85.1 |
|
||
|
|
|
||||
Combined ratio |
88.9 |
|
95.5 |
|
||
Validus Re impact |
(0.9 |
) |
— |
|
||
Combined ratio, comparable basis |
88.0 |
|
95.5 |
|
||
|
|
|
||||
|
|
|
||||
Loss ratio |
67.0 |
|
61.2 |
|
||
Catastrophe losses and reinstatement premiums |
(9.7 |
) |
(8.0 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
5.1 |
|
0.4 |
|
||
Accident year loss ratio, as adjusted |
62.4 |
|
53.6 |
|
||
|
|
|
||||
Combined ratio |
113.0 |
|
111.5 |
|
||
Catastrophe losses and reinstatement premiums |
(9.7 |
) |
(8.0 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
5.1 |
|
0.4 |
|
||
Accident year combined ratio, as adjusted |
108.4 |
|
103.9 |
|
||
|
|
|
||||
International - Commercial Lines |
|
|
||||
Combined ratio |
83.4 |
|
84.3 |
|
||
Catastrophe losses and reinstatement premiums |
(3.3 |
) |
(4.1 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
(0.4 |
) |
3.2 |
|
||
Accident year combined ratio, as adjusted |
79.7 |
|
83.4 |
|
||
Validus Re impact |
— |
|
— |
|
||
Accident year combined ratio, as adjusted, comparable basis |
79.7 |
|
83.4 |
|
||
|
|
|
||||
Combined ratio |
83.4 |
|
84.3 |
|
||
Validus Re impact |
(0.4 |
) |
— |
|
||
Combined ratio, comparable basis |
83.0 |
|
84.3 |
|
||
|
|
|
||||
International - Personal Insurance |
|
|
||||
Combined ratio |
97.2 |
|
93.7 |
|
||
Catastrophe losses and reinstatement premiums |
(2.1 |
) |
(0.8 |
) |
||
Prior year development, net of reinsurance and prior year premiums |
0.8 |
|
2.5 |
|
||
Accident year combined ratio, as adjusted |
95.9 |
|
95.4 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104868342/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.
FAQ
What was AIG's earnings per share in Q3 2024?
How much capital did AIG return to shareholders in Q3 2024?
What was AIG's combined ratio in Q3 2024?