Group 1 - American International Group (NYSE: AIG) shares have shown moderate performance over the past year, increasing by only 8% [1] - The stock has remained rangebound between $70 and $78 for most of the past year, indicating a lack of significant movement [1] - There is no indication that the stock is set to break out of its current range in the near future [1]

Core Insights - American International Group (AIG) reported a revenue of $6.85 billion for Q4 2024, marking a year-over-year decline of 46.1% and an EPS of $1.30 compared to $1.79 a year ago, exceeding the Zacks Consensus Estimate of $6.77 billion by 1.27% and delivering an EPS surprise of 3.17% [1] Financial Performance Metrics - Loss Ratio for Total General Insurance was 59.7%, slightly better than the average estimate of 60.1% [4] - Expense Ratio for Total General Insurance stood at 32.8%, higher than the estimated 31.9% [4] - Combined Ratio for Total General Insurance was 92.5%, compared to the average estimate of 92% [4] - Combined Ratio for General Insurance - North America - Commercial Lines was 98.8%, above the average estimate of 90.9% [4] - Combined Ratio for General Insurance - International - Commercial Lines was 83.1%, better than the average estimate of 86.5% [4] - Net premiums earned in General Insurance were $5.98 billion, exceeding the average estimate of $5.91 billion, with a year-over-year change of 1.1% [4] - Net investment income for General Insurance was $779 million, surpassing the average estimate of $759.90 million, but reflecting a year-over-year decline of 2% [4] - Net premiums written in General Insurance were $6.08 billion, compared to the average estimate of $6.68 billion, showing a year-over-year increase of 5.6% [4] - Revenue from Premiums was $5.97 billion, slightly above the average estimate of $5.93 billion, but down 29.5% year-over-year [4] - Net investment income was reported at $1.31 billion, exceeding the estimate of $875.43 million, but down 66.6% compared to the previous year [4] - Adjusted pre-tax loss from Other Operations was -$150 million, better than the average estimate of -$167.71 million [4] - Adjusted pre-tax income for General Insurance was $1.23 billion, slightly below the average estimate of $1.28 billion [4] Stock Performance - AIG shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Core Viewpoint - American International Group (AIG) reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, but down from $1.79 per share a year ago, indicating a mixed performance in earnings [1][2] Group 1: Earnings Performance - AIG's quarterly earnings surprise was 3.17%, with a previous quarter surprise of 8.85% [1] - Over the last four quarters, AIG has surpassed consensus EPS estimates three times [2] - The company posted revenues of $6.85 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.27%, but down from $12.72 billion year-over-year [2] Group 2: Stock Performance and Outlook - AIG shares have increased approximately 3.2% since the beginning of the year, slightly outperforming the S&P 500's gain of 3.1% [3] - The future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.57 on revenues of $6.73 billion, and for the current fiscal year, it is $6.45 on revenues of $27.8 billion [7] Group 3: Industry Context - The Zacks Industry Rank places the Insurance - Multi line sector in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Press Release Contacts: www.aig.com Quentin McMillan (Investors): quentin.mcmillan@aig.com Claire Talcott (Media): claire.talcott@aig.com AIG Reports Outstanding Fourth Quarter and Full Year 2024 Results Fourth Quarter 2024: Full Year 2024: NEW YORK, February 11, 2025 – American International Group, Inc. (NYSE: AIG) today reported financial results for the fourth quarter and full year ended December 31, 2024. "2024 was an outstanding year of accomplishments for AIG in which we successfully executed multiple ...

American International Group, Inc. (AIG) is set to report its fourth-quarter 2024 results on Feb. 11, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) is currently pegged at $1.26 on revenues of $6.8 billion.See the Zacks Earnings Calendar to stay ahead of market-making news.The fourth-quarter earnings estimate has been revised downward over the past 60 days. The Zacks Consensus Estimate for quarterly revenues and earnings suggests year-over-year ...

In its upcoming report, American International Group (AIG) is predicted by Wall Street analysts to post quarterly earnings of $1.29 per share, reflecting a decline of 27.9% compared to the same period last year. Revenues are forecasted to be $6.77 billion, representing a year-over-year decrease of 46.8%.The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initi ...

The market expects American International Group (AIG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 11, 2025, might help the stock move higher if the ...

AIG's Performance and Growth Prospects - AIG currently carries a Zacks Rank 3 (Hold) and has gained 5.7% in the past year [2] - The Zacks Consensus Estimate for 2025 earnings is $6.50 per share, indicating 32.2% growth from 2024, with revenues estimated at $27.8 billion, a 3.1% rise from 2024 [4] - AIG's bottom line surpassed earnings estimates in three of the trailing four quarters, with an average surprise of 2.88% [5] AIG's Business Strengths - Revenues benefit from rate increases, new business generation, and strong retention rates in Commercial and Personal lines, driving the General Insurance segment [6] - The investment portfolio generates improved returns from alternative investments, equity, and fixed maturity securities, with plans to pursue buyouts in international markets to strengthen the personal business stream [7] - The company has undertaken divestitures to focus on core insurance business, including selling a 20% stake to Nippon Life Insurance and its global individual personal travel insurance business to Zurich Insurance Group [8] Cost Management and Technological Advancements - AIG has reduced expenses through business mix shifts, stringent cost management, and an improved premium base, enhancing operational efficiency and margins [9] - The company selected Amazon Web Services as its preferred public cloud provider to support digital transformation and enable large-scale technological advancements [9] Financial Position and Capital Deployment - AIG boasts strong liquidity with a solid cash balance and reducing debt levels, enabling prudent capital deployment via share buybacks and dividend payments [10] - The leverage ratio has improved, with total debt to total capital at 18.2%, below the industry average of 31.4% [10] Insurance Industry Comparison - CNO Financial Group, Primerica, and Cincinnati Financial are better-ranked stocks in the insurance space, with Zacks Ranks of 1 (Strong Buy) and 2 (Buy) respectively [12] - CNO Financial's earnings surpassed estimates in three of the last four quarters, with an average surprise of 24.51%, and its 2025 earnings estimate indicates a 0.6% rise [13] - Primerica's earnings beat estimates in two of the trailing four quarters, with an average surprise of 4.89%, and its 2025 earnings estimate indicates a 6% rise [14] - Cincinnati Financial's earnings outpaced estimates in three of the trailing four quarters, with an average surprise of 12.54%, and its 2025 earnings estimate indicates a 15.3% rise [15] - Shares of CNO Financial, Primerica, and Cincinnati Financial have gained 37.8%, 30.6%, and 32.5% respectively in the past year [16]

Financial Performance - AIG's stock gained around 7% over the last 12 months, underperforming the S&P 500 which rose over 25% and its peer Travelers which gained 25% [1] - Q3 2024 adjusted earnings rose 18% to $1.23 per share, driven by strong underwriting and higher investment returns [1] - Net premiums in Global Commercial business increased 6% YoY, with a strong retention rate of 88% and $1.1 billion in new business [1] - Net investment income rose 14% to $973 million in the last quarter [1] Business Strategy - AIG has been focusing more on property and casualty insurance after spinning off its life insurance and retirement business [2] - Property and casualty insurance offers higher margins and more flexibility in adjusting premiums compared to life insurance [2] - The company repurchased $1.5 billion of common shares in Q3 2024, with total capital returns to shareholders reaching $6 billion in the first nine months of 2024 [2] Market Outlook - AIG's stock has increased in value each year from 2021 to 2024, with returns of 54%, 14%, 10%, and 10% respectively [2] - The recent U.S. presidential election could benefit insurers through potential regulatory relief and tax cuts [2] - AIG's stock is valued at about $90 per share, 24% above the current market price [2]

Core Viewpoint - The Zacks Multiline Insurance industry is benefiting from product diversification, improved pricing, prudent underwriting, and accelerated digitalization, which are expected to enhance revenue generation and retention ratios for key players like AIG, Prudential, The Hartford, Radian, and CNO [1][4]. Industry Overview - The Zacks Multiline Insurance industry includes companies that provide bundled insurance coverage for various needs, improving customer retention and offering lower premium payments compared to individual policies [3]. - The industry is characterized by diversified product portfolios, which help lower concentration risk and drive demand for protection products, particularly in life insurance [4]. Trends Shaping the Industry - Increased awareness and demand for protection products are expected to boost sales and premiums, with a focus on customized offerings [4]. - The transition to green energy and the rise of cyber insurance due to increased AI adoption present growth opportunities [4]. - The industry is anticipated to see continued consolidation as companies seek to diversify operations and expand market share, particularly in insurance technology [5]. Technological Adoption - The industry is experiencing significant digitalization, utilizing technologies such as blockchain, AI, and advanced analytics to enhance operations and reduce costs [6]. - Real-time data usage is improving premium calculations and risk management, while also streamlining underwriting and claims processing [6]. Market Performance - The Zacks Multiline Insurance industry ranks 63, placing it in the top 25% of 251 Zacks industries, indicating positive earnings outlooks and potential for outperformance [7][8]. - The industry has collectively gained 25.9% over the past year, outperforming the Finance sector's 22.7% increase but slightly underperforming the S&P 500's 26% rise [9]. Current Valuation - The industry is currently trading at a price-to-book (P/B) ratio of 2.44X, significantly lower than the S&P 500's 8.76X and the Finance sector's 3.71X [11]. - Historical P/B ratios for the industry have ranged from a low of 0.69X to a high of 2.74X over the past five years [12]. Company Highlights - **Radian Group**: Positioned for growth with a strong mortgage insurance portfolio and a Zacks Rank 2, with a consensus estimate indicating a 3.1% increase in 2024 earnings [17][18]. - **CNO Financial Group**: A Zacks Rank 2 company with a projected 20.7% increase in 2024 earnings, supported by a strong product portfolio [20][21]. - **American International Group (AIG)**: A Zacks Rank 3 insurer focusing on strategic derisking and acquisitions, with a consensus estimate for a 30.4% increase in 2025 earnings [24][25]. - **Prudential Financial**: A Zacks Rank 3 company with solid growth prospects driven by asset-based businesses and a projected 14.9% increase in 2024 earnings [27][28]. - **Hartford Financial**: A Zacks Rank 3 insurer expected to grow due to improved mortgage insurance quality, with a consensus estimate for a 13.5% increase in 2024 earnings [31][32].