Financial Data and Key Metrics - Adjusted after-tax income was $798 million, or $1.23 per diluted share, representing a 31% increase in earnings per share year-over-year [10] - Underwriting income for the quarter was $437 million, including total catastrophe-related charges of $417 million [10] - Consolidated net investment income on an adjusted pre-tax income basis was $897 million, a 19% increase year-over-year [11] - Core operating ROE was 9.2% with core operating equity of $34.5 billion as of September 30, 2024 [11] - Debt-to-total-capital ratio was 17.9%, including AOCI and parent liquidity of $4.2 billion [12] Business Line Performance - Gross premiums written for General Insurance were $8.6 billion, a 3% increase from the prior year [13] - Net premiums written for General Insurance were $6.4 billion, a 6% increase [13] - Global Commercial net premiums written grew 7% year-over-year, driven by $1.1 billion of new business [14] - North America Commercial net premiums written grew 11% year-over-year [16] - International Commercial net premiums written grew 3% year-over-year, with specialty lines growing 10% [21] Market Performance - North America Commercial retention was 90% in admitted lines and 78% in Lexington [17] - International retention remained strong at 89%, with energy and property at 92% and casualty at 91% [22] - North America Commercial new business growth was 22% year-over-year, led by Lexington with 24% growth [18] Strategy and Industry Competition - The company has transformed its underwriting and reinsurance strategy, reducing CAT losses by 80% compared to 2012 [32] - AIG Next program is expected to deliver $500 million in savings by 2025, impacting both General Insurance and other operations [36] - The company is leveraging GenAI to improve underwriting processes, with data accuracy rates improving from 75% to 90% [40] Management Commentary on Operating Environment and Future Outlook - The company expects to deliver a 10% core operating ROE for the full-year 2025 [49] - Management highlighted the increasing frequency and severity of natural catastrophes, with industry losses expected to exceed $125 billion in 2024 [24][29] - The company is well-positioned to manage volatility through underwriting and reinsurance strategies, maintaining low net retention among global competitors [33] Other Important Information - The company returned $1.8 billion to shareholders in Q3 through stock repurchases and dividends [11] - AIG Next has enabled the company to invest in core capabilities and strategic innovation initiatives, particularly in underwriting, claims, and AI [38] - The company expects to fully realize $500 million in savings from AIG Next by 2025 [36] Q&A Session Summary Question: Reserves and Financial Lines - The company discussed favorable development in shorter tail lines and noted that older accident years in financial lines are emerging better than expected but are not yet booked [71][72] - Adverse development in U.K. and Europe casualty and financial lines was partially offset by favorable development in U.S. and international portfolios [74] Question: Property Reinsurance Program - The company does not expect material changes in its reinsurance structures and will maintain low attachment points on severity and aggregate protections [77][78] Question: Market Conditions and Growth Opportunities - The company sees strong growth opportunities in North America Commercial, particularly in casualty and E&S lines, with new business growth of 22% year-over-year [80][81] - Lexington continues to show strong performance, with 78% retention and 24% new business growth [85] Question: ROE Aspirations and Capital Management - The company aims to achieve a 10% core operating ROE in 2025 and is exploring opportunities to improve margins, grow premiums, and manage capital effectively [88][89] - The company has flexibility to increase leverage for potential M&A opportunities [104] Question: General Insurance GOE Ratio - The company is absorbing $50 million of expenses into General Insurance, with improvements expected to show more significantly in Q4 and 2025 [99][100] Question: Personal Lines in North America - The company is transitioning its North America personal lines business to an MGA structure, with expectations for improved combined ratios in 2025 [107][108] Question: North America Commercial Loss Ratio - The company expects the loss ratio to stabilize, with growth opportunities in casualty and property lines [115][116] Question: International Growth Opportunities - The company sees strong growth in international specialty lines, particularly in energy and marine, with 25% new business growth in marine and 18% growth in Talbot specialty lines [119][120]

Core Insights - American International Group, Inc. (AIG) reported third-quarter 2024 adjusted earnings per share of $1.23, exceeding the Zacks Consensus Estimate by 8.9% and showing an 18.3% year-over-year improvement [1] - Adjusted operating revenues were $6.84 billion, a decline of 5.9% year over year, but still beating the consensus mark by 3.3% [1][2] Financial Performance - Premiums for the quarter totaled $5.9 billion, down 9.1% year over year, yet surpassing the Zacks Consensus Estimate by 3.9% [3] - Total net investment income increased by 13.7% year over year to $973 million, driven by higher income from fixed maturity securities and dividends from Corebridge Financial, Inc. [3] - Total benefits, losses, and expenses decreased by 1.1% year over year to $6.1 billion, attributed to lower policyholder benefits and losses [4] Segment Analysis - In the General Insurance segment, net premiums written were $6.38 billion, a 1% decline year over year, but a 6% increase on a comparable basis [5] - Underwriting income fell by 28% on a reported basis to $437 million, impacted by increased catastrophe charges [6] Investment and Capital Management - AIG repurchased shares worth $1.5 billion and distributed dividends totaling $254 million [10] - The company ended the quarter with a cash balance of $1.47 billion, down from $1.54 billion at the end of 2023 [8] Financial Position - Total assets decreased to $169.45 billion from $539.31 billion at the end of 2023 [8] - Total equity fell to $45.1 billion from $51.3 billion at the end of 2023, with adjusted book value per share declining by 9.1% year over year to $73.90 [9]

Third Quarter 2024 Financial Results Presentation November 5, 2024 Copyright ® 2024 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Q3 2024 Earnings Key Themes 2 • Excellent financial and operational results supported by continued Adjusted EPS* growth • North America Commercial delivered double-digit NPW growth(1) supported by strong new business growth and retention • Initial benefits from AIG Next ...

Core Insights - American International Group (AIG) reported a revenue of $6.84 billion for the quarter ended September 2024, reflecting a decline of 39.8% year-over-year, while EPS was $1.23 compared to $1.61 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $6.62 billion by 3.29%, and the EPS also surpassed the consensus estimate of $1.13 by 8.85% [1] Financial Performance Metrics - Expense Ratio for Total General Insurance was 31.9%, slightly above the average estimate of 31.6% [3] - Combined Ratio for Total General Insurance was reported at 92.6%, better than the estimated 93.9% [3] - Loss Ratio for Total General Insurance stood at 60.7%, compared to the average estimate of 62.3% [3] - Combined Ratio for Total General Insurance - International was 87.9%, outperforming the estimated 91.1% [3] - Net premiums earned in General Insurance - International were $3.309 billion, slightly below the estimate of $3.319 billion [3] - Net premiums earned in General Insurance - North America were $2.638 billion, exceeding the estimate of $2.445 billion [3] - General Insurance - Net premiums earned totaled $5.95 billion, surpassing the average estimate of $5.80 billion, but represented a year-over-year decline of 7.4% [3] - General Insurance - Net investment income was $773 million, above the estimate of $743.94 million, reflecting a year-over-year increase of 2.3% [3] - General Insurance - Net premiums written were $6.38 billion, below the estimate of $6.51 billion, indicating a year-over-year decline of 1.3% [3] - Adjusted Revenue - Other Operations - Net investment income was $125 million, exceeding the estimate of $122.68 million, with a significant year-over-year increase of 267.7% [3] - Adjusted Revenue - Total Other Operations was $123 million, below the estimate of $152.34 million, but showed a year-over-year increase of 119.6% [3] - Revenue - Net investment income was $973 million, surpassing the estimate of $875.18 million, but represented a substantial year-over-year decline of 72.6% [3] Stock Performance - AIG shares have returned -0.4% over the past month, in contrast to the Zacks S&P 500 composite's +0.4% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Viewpoint - American International Group (AIG) reported quarterly earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, but down from $1.61 per share a year ago, indicating an earnings surprise of 8.85% [1][2] Financial Performance - AIG's revenues for the quarter ended September 2024 were $6.84 billion, surpassing the Zacks Consensus Estimate by 3.29%, compared to $11.36 billion in revenues from the same quarter last year [2] - Over the last four quarters, AIG has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - AIG shares have increased approximately 11.8% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The current Zacks Rank for AIG is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $6.92 billion, and for the current fiscal year, it is $4.99 on revenues of $26.93 billion [7] - The outlook for the insurance industry, particularly the Zacks Insurance - Multi line sector, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for AIG [8]

General Insurance Performance - General Insurance net premiums written of $6.4 billion, a decrease of 1% on a reported basis, or an increase of 6% on a comparable basis[1] - General Insurance APTI of $1.2 billion decreased 11% from the prior year quarter, largely due to the Validus Re divestiture in 2023, or 5% on a comparable basis[15] - General Insurance Underwriting Income excluding Validus Re was $437 million in Q3 2024[72] - Net premiums written on a comparable basis increased by 6.0% globally, with North America - Commercial Lines showing an 11.2% increase[73] - Net premiums written as reported in U.S. dollars were $6,462 million globally, with a foreign exchange effect of $(79) million[73] - The combined ratio for Total General Insurance increased from 90.5% in Q3 2023 to 92.6% in Q3 2024[74] - Validus Re impact on net premiums written was $(365) million globally, with North America - Commercial Lines seeing a $(343) million impact[73] Commercial Lines Performance - Global Commercial Lines net premiums written of $4.5 billion, a decrease of 2% on a reported basis, or an increase of 7% on a comparable basis[1] - North America Commercial Lines achieved 11% growth with new business growth of 22%, led by Lexington Insurance which grew 24%[3] - North America Commercial Lines NPW declined 4% YoY to $2.445 billion, but increased 11% on a comparable basis, driven by Retail Casualty and Lexington Insurance with 22% YoY growth in new business production[17] - North America Commercial Lines combined ratio increased to 95.5% in Q3 2024, up 6.6 percentage points YoY, with AYCR at 85.1%, up 2.1 percentage points[17] - International Commercial Lines NPW increased 1% YoY to $2.052 billion, or 3% on a comparable basis, with combined ratio at 84.3%, up 0.9 percentage points YoY[21] - International - Commercial Lines combined ratio increased slightly from 83.4% in Q3 2023 to 84.3% in Q3 2024, with catastrophe losses impacting by (4.1) percentage points[76] - North America - Commercial Lines loss ratio rose from 63.7% in Q3 2023 to 72.2% in Q3 2024, with catastrophe losses impacting by (13.3) percentage points[74] - Accident year combined ratio, as adjusted, for North America - Commercial Lines increased from 83.0% in Q3 2023 to 85.1% in Q3 2024[76] Personal Insurance Performance - North America Personal Insurance NPW grew 4% YoY to $632 million, driven by High Net Worth segment growth, with combined ratio improving to 111.5% from 113.0% YoY[18][19] - International Personal Insurance NPW declined 2% YoY to $1.251 billion, but grew 3% on a comparable basis, with combined ratio improving to 93.7% from 97.2% YoY[22][23] - North America - Personal Insurance loss ratio improved from 67.0% in Q3 2023 to 61.2% in Q3 2024, driven by lower catastrophe losses[76] - International - Personal Insurance combined ratio improved from 97.2% in Q3 2023 to 93.7% in Q3 2024, with prior year development contributing 2.5 percentage points[76] - North America - Personal Insurance accident year loss ratio, as adjusted, improved significantly from 62.4% in Q3 2023 to 53.6% in Q3 2024[76] Investment Income and Capital Management - Total net investment income for the third quarter of 2024 was $973 million, an increase of 14% from $856 million in the prior year quarter[9] - Returned approximately $1.8 billion of capital to shareholders in the third quarter through $1.5 billion of stock repurchases and $254 million of dividends[1] - Net investment income increased by $80 million YoY to $125 million, primarily due to dividend income from Corebridge and higher yields on short-term investments[25] - General Insurance Net Investment Income on a comparable basis was $718 million in Q3 2023[65] - Total Net Investment Income on an APTI basis was $792 million in Q3 2023[65] Financial Metrics and Ratios - Adjusted after-tax income (AATI) per diluted share was $1.23, an increase of 18% from the prior year quarter, or 31% on a comparable basis[1] - Book value per share was $71.46 as of September 30, 2024, an increase of 4.5% from the previous quarter[11] - Adjusted book value per share is used to show net worth per share, excluding Investments AOCI and Fortitude Re funds withheld assets, derived by dividing AIG adjusted common equity by total common shares outstanding[38] - Tangible book value per share is calculated by excluding Goodwill, VOBA, VODA, and Other intangible assets, providing a measure of realizable shareholder value per share[39] - Core operating book value per share excludes Investments AOCI, DTA, and AIG's ownership interest in Corebridge, reflecting net worth per share without non-core long-term investments[40] - Total debt and preferred stock to total adjusted capital ratio is used to measure debt leverage, adjusted for Investments AOCI and Fortitude Re funds withheld assets[41] - Adjusted return on equity excludes Investments AOCI, calculated by dividing adjusted after-tax income by average AIG adjusted common shareholders' equity[43] - Return on tangible equity excludes Goodwill, VOBA, VODA, and Other intangible assets, showing return on tangible common shareholder equity[44] - Core operating return on equity excludes Investments AOCI, DTA, and AIG's ownership interest in Corebridge, providing insight into the profitability of the property and casualty business[45] - Adjusted revenues exclude Net realized gains (losses), non-operating litigation settlements, and income from elimination of the International reporting lag[46] - Adjusted Pre-tax Income (APTI) excludes items like fair value changes in equity securities, net realized gains/losses, and non-operating litigation reserves, among others[47] - Accident year loss and combined ratios exclude catastrophe losses, prior year development, and reserve discounting, providing a measure of ongoing underwriting results[53] - Adjusted return on equity improved to 6.8% in Q3 2024 from 5.3% in Q3 2023[69] - Core operating ROE increased to 9.2% in Q3 2024 from 8.6% in Q3 2023[69] - Total debt to total capital ratio was 17.9% in Q3 2024[70] Catastrophe Losses and Underwriting - Total catastrophe-related charges were $417 million for the quarter, representing 6.9 loss ratio points[3] - The third quarter accident year combined ratio, as adjusted was 88.3%, demonstrating underwriting discipline[3] - Accident year loss and combined ratios exclude catastrophe losses, prior year development, and reserve discounting, providing a measure of ongoing underwriting results[53] Earnings and Income - Adjusted pre-tax income for Q3 2023 was $1,089 million, with an adjusted after-tax income of $336 million attributable to AIG common shareholders[60] - Net income attributable to AIG common shareholders for Q3 2023 was $2,020 million[60] - Adjusted pre-tax income for the nine months ended September 30, 2024, was $3,099 million, with an adjusted after-tax income of $791 million attributable to AIG common shareholders[62] - Net income (loss) attributable to AIG common shareholders for the nine months ended September 30, 2024, was $(2,324) million[62] - Basic earnings per share from continuing operations decreased by 22.7% to $0.75 in Q3 2024 compared to $0.97 in Q3 2023[64] - Net income attributable to AIG common shareholders dropped by 74.6% to $0.72 in Q3 2024 from $2.83 in Q3 2023[64] - Adjusted after-tax income per diluted share increased by 18.3% to $1.23 in Q3 2024 from $1.04 in Q3 2023[64] Costs and Expenses - Restructuring and other costs for Q3 2023 amounted to $49 million[60] - Restructuring and other costs for the nine months ended September 30, 2024, totaled $264 million[62] - Net realized losses on Fortitude Re funds withheld assets for the nine months ended September 30, 2024, were $64 million[62] - Net loss reserve discount charge for the nine months ended September 30, 2024, was $85 million[62] - Integration and transaction costs associated with acquiring or divesting businesses for the nine months ended September 30, 2024, were $10 million[62] - Non-recurring costs related to regulatory or accounting changes for the nine months ended September 30, 2024, were $19 million[62] - General operating expenses decreased by $29 million YoY to $150 million, reflecting benefits from AIG Next initiatives[25] - Interest expense decreased by $22 million YoY to $111 million, driven by debt reductions over the past year[25] Shareholder Equity and Capital - Average AIG adjusted common shareholders' equity increased to $44,742 million in Q3 2024 from $40,734 million in Q3 2023[69] Conference Call and Financial Data - AIG will host a conference call on November 5, 2024, to review Q3 2024 results, with supplementary financial data available on the company's website[26]

Global insurer American International Group, Inc. (AIG) is set to report third-quarter 2024 results on Nov. 4, 2024, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is currently pegged at $1.13 per shareon revenues of $6.62 billion. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The third-quarter earnings estimate has witnessed downward revisions over the past 60 days. The bottom-line projection indicates a year-over-year decline of 2 ...

Analysts on Wall Street project that American International Group (AIG) will announce quarterly earnings of $1.13 per share in its forthcoming report, representing a decline of 29.8% year over year. Revenues are projected to reach $6.62 billion, declining 41.7% from the same quarter last year.Over the last 30 days, there has been a downward revision of 4.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their i ...

Wall Street expects a year-over-year decline in earnings on lower revenues when American International Group (AIG) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers ...

Leadership Change - Keith Walsh appointed as new executive vice president and CFO of AIG, effective Oct 21, 2024 [1] - Walsh brings over two decades of finance leadership experience, including roles at Marsh & McLennan and Citigroup [2] - He will oversee AIG's global finance organization and report to CEO Peter Zaffino [1][2] - Sabra Purtill, the outgoing CFO, will continue to support strategic projects and ensure a smooth transition [1] Industry Context - The insurance industry is benefiting from a high-interest environment, which is boosting investment income [3] - Insurers are experiencing consistent growth in premiums [3] - AIG's return on equity of 9.5% is below the industry average of 16%, indicating inefficiency in generating profits [3] Financial Performance - AIG's shares have declined by 4.5% over the past six months, compared to the industry's 2.2% growth [4] - The company currently holds a Zacks Rank 5 (Strong Sell) [5] Comparison with Peers - MGIC Investment Corporation (MTG) is a better-ranked player in the finance space with a Zacks Rank 1 (Strong Buy) [5] - MGIC's current-year earnings are expected to grow by 9.1% year-over-year [5] - The consensus estimate for MGIC's current-year revenues is $1.2 billion, reflecting a 4.7% increase from the previous year [5]