Core Viewpoint - AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICRs) of AIG's property/casualty insurance subsidiaries to "a+" from "a" and affirmed the Financial Strength Rating (FSR) of A (Excellent), with stable outlooks for both ratings [1][3]. Group 1: Credit Ratings and Outlook - The Long-Term ICRs have been upgraded to "a+" (Excellent) from "a" (Excellent) and the FSR of A (Excellent) has been affirmed, with the outlook for the Long-Term ICRs revised to stable from positive [1][3]. - The outlook of the FSR is maintained at stable [1]. Group 2: Financial Strength and Performance - AIG PC's balance sheet strength is assessed as very strong, with a risk-adjusted capital position at the strongest level, benefiting from improving underwriting performance and strong reinsurance support [1][2]. - AIG PC's operating performance is considered adequate, with historical combined and operating ratios lagging behind composite peers, but showing a steady improvement trend due to underwriting and risk management initiatives [2]. Group 3: Business Profile - AIG PC's business profile is assessed as favorable, reflecting its market position and presence in both domestic and global markets, with deep expertise in commercial lines and diverse distribution channels [2].

NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) will report financial results for the fourth quarter and full year ended December 31, 2023, after the market closes on Tuesday, February 13, 2024. AIG’s press release and financial supplement will be available in the Investors section of AIG’s website at https://www.aig.com. AIG will also host a conference call on Wednesday, February 14, 2024, at 8:30 a.m. ET to review these results. The live, listen-only webcast is open to the publi ...

Key PointsConsumers can expect insurance premiums to continue to rise in 2024, creating an opportunity for investors.  Progressive Corporation benefits from the necessity to have auto insurance in a rising rate environment.  American International Group is enacting strong underwriting discipline to increase the company's loss reserves. Chubb caters to higher-income consumers, which may protect its balance sheet. 5 stocks we like better than American International GroupThe rate of inflation is expected to co ...

Third Quarter 2023 Financial Results Presentation November 2, 2023 Copyright ® 2023 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Group Performance Strategy Segment Performance GI L&R Other Investments Capital Operating EPS* Increased 92% from the Prior Year Quarter with Co ...

Financial Data and Key Metrics Changes - Adjusted after-tax income was $1.2 billion or $1.61 per diluted common share, representing a 92% increase year-over-year [8][38] - Consolidated net investment income on an adjusted pre-tax income basis was $3.3 billion, a 29% increase year-over-year [8] - General Insurance underwriting income improved over 250% from the prior year quarter to $611 million [8] Business Line Data and Key Metrics Changes - In General Insurance, net premiums written grew 9% year-over-year to $6.5 billion [14] - Life and Retirement's adjusted pre-tax income was $971 million, up 24% year-over-year, with premiums and deposits growing 4% to $9.2 billion [9][46] - The accident year combined ratio for General Insurance, excluding catastrophes, improved by 210 basis points to 86.3% [8][23] Market Data and Key Metrics Changes - North America commercial net premiums written increased 5% in the third quarter [14] - International Commercial net premiums written grew 7%, primarily driven by property, which was up 13% [18] - Personal Insurance net premiums written increased 16% year-over-year, primarily driven by North America [22] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and reducing volatility through strategic divestitures, including the sale of Validus Re [11][36] - AIG aims for a 10% plus return on common equity (ROCE) post deconsolidation of Corebridge [34][50] - The company is committed to maintaining a balanced capital management strategy, focusing on share repurchases and debt reduction [33][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting results and the strategic repositioning of the company [35][36] - The company is well-positioned to take advantage of opportunities in the current marketplace despite challenges from social inflation [32][66] - Management highlighted the importance of maintaining strong underwriting standards and risk management practices [27][41] Other Important Information - AIG returned over $1 billion to shareholders through stock repurchases and dividends during the quarter [11] - The company expects continued improvement in financial performance from its Personal Insurance segment [23] - Corebridge Financial is on track for operational separation, with significant returns to shareholders since its IPO [10][39] Q&A Session Summary Question: What is the process for ensuring that the adverse development in international commercial doesn't reflect social inflation problems? - Management explained that the DVR process involves a deep dive into reserves annually, with adjustments made quarterly based on actual versus expected analysis [54][56] Question: Can you provide insight into the underlying underwriting results and path to profitability in North America Personal? - Management acknowledged that the segment is in transition and expects significant benefits from premium earnings in the coming quarters [58][59] Question: How is the company managing through the cycle in financial lines given the current market conditions? - Management indicated a cautious approach to the large account public company D&O business, focusing on maintaining margins and reducing limits in excess layers [61][66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 —————————— FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or o ...

Summary of AIG 2023 Keefe, Bruyette & Woods Insurance Conference Company Overview - **Company**: American International Group, Inc. (NYSE:AIG) - **Date**: September 6, 2023 - **Participants**: - Peter Zaffino - CEO - Sabra Purtill - CFO - Meyer Shields - KBW Key Highlights and Accomplishments - **2022 Performance**: - Achieved an accident year combined ratio of 88.7%, with $2 billion in underwriting income, a $1 billion increase from the previous year [2][3] - Completed AIG 200 initiative, resulting in $1 billion in run rate savings, six months ahead of schedule [3] - IPO of Corebridge Financial, the largest U.S. IPO of 2022, despite challenging market conditions [3] - Returned over $6 billion in capital through share repurchases and dividends, and reduced net debt by over $700 million [3] - **2023 Performance (First Half)**: - Achieved a 10% growth in written premiums on an FX and lag adjusted basis, driven by a 12% growth in the commercial business [4] - Reduced gross limits in general insurance commercial business by over $1.4 trillion since 2018, with 70% from the property portfolio [4] Strategic Transactions - **Validus Re Sale**: - Announced sale for $3 billion, expected to close in Q4 2023, aimed at reducing volatility in PMLs and generating additional liquidity [5][6] - **Crop Risk Services Sale**: - Sold to American Financial Group for approximately $240 million [6] - **Corebridge Health Care Sale**: - Entered into an agreement to sell to AXA for EUR 650 million, expected to close in Q4 2023 [7] Market Conditions and Risk Management - **Catastrophe Activity**: - First half of 2023 saw insured losses exceeding $50 billion, with significant contributions from secondary perils [8] - Notable events included wildfires in Canada and hurricanes in the U.S. [8] - **Reinsurance Strategy**: - Maintained attachment points and utilized a strong reinsurance program to control volatility [16][17] Financial Management and Capital Strategy - **Capital Management**: - Increased quarterly common stock dividend by 12.5% and authorized $7.5 billion in share buybacks [9] - Targeting a share count of $600 million to $650 million, with leverage expected to remain in the low 20s [9][10] - **Liquidity Position**: - Reported strong parent liquidity of $4.3 billion at the end of Q2 2023 [10] Future Focus and Growth Strategy - **Sustainable ROCE**: - AIG aims for a sustainable return on capital employed (ROCE) of over 10% through strategic portfolio shifts [10] - **High Net Worth Market**: - Plans to grow in the ultra-high net worth space through a new managing general agency (MGA) in partnership with Stone Point Capital [26][27] - **International Growth**: - Focus on expanding in Japan, leveraging digital capabilities and existing distribution networks [40][41] Additional Insights - **Operational Improvements**: - AIG 200 initiative has enhanced core capabilities, including IT and underwriting systems [64][65] - **Market Dynamics**: - The reinsurance market is experiencing increased demand and pricing pressures due to recent catastrophe activities [15][17] - **Divestiture Strategy**: - AIG is focused on divesting non-core assets to streamline operations and enhance focus on core insurance business [34][35] This summary encapsulates the key points discussed during the conference, highlighting AIG's strategic initiatives, financial performance, and future growth plans.

Financial Performance - AIG reported an After-Tax Income per Diluted Share (GAAP) of $203, a decrease of 41% compared to 2Q22[4] - Adjusted After-Tax Income (AATI) was $13 billion, a 15% increase compared to $11 billion in 2Q22[4] - The General Insurance combined ratio was 909%, a 35 percentage point increase compared to 2Q22[4] - AIG returned $822 million to shareholders through $554 million of common stock repurchases and $268 million of common and preferred stock dividends in 2Q23[4] Strategic Initiatives - AIG announced the sale of Validus Reinsurance, Ltd to RenaissanceRe, expected to close in 4Q23[4] - AIG raised $12 billion through a secondary offering of 7475 million Corebridge shares at $1625 per share, reducing AIG's ownership to 653%[4] - AIG closed the sale of its Crop Risk Services business to American Financial Group, Inc[4] - AIG formed Private Client Select, a Managing General Agency partnership with Stone Point Capital LLC for the U S High-Net-Worth Personal Insurance Book[5] General Insurance - General Insurance net premiums written (NPW) increased by 10% to $7537 million in 2Q23 from $6866 million in 2Q22[20] - Commercial Lines NPW increased by 14% to $5633 million in 2Q23 from $4955 million in 2Q22[21]

Financial Data and Key Metrics Changes - Adjusted after-tax income was $1.3 billion, or $1.75 per diluted common share, representing a 26% increase year-over-year, marking the best quarterly adjusted EPS result since 2007 [7] - Net premiums written in General Insurance grew 11%, with underwriting income approximately $600 million and an adjusted accident year combined ratio ex-CATs of 88%, a 50 basis point improvement year-over-year [7][33] - Adjusted pre-tax income for Life and Retirement was $991 million, up 33% year-over-year, with premiums and deposits exceeding $10 billion, a 42% increase year-over-year [8] Business Line Data and Key Metrics Changes - General Insurance gross premiums written were $10.4 billion, an increase of 11%, with Global Commercial growing 15% and Global Personal decreasing 1% [24] - Life and Retirement segment saw adjusted pre-tax income of $991 million, with a strong performance in Fixed Index Annuities contributing to a 42% increase in premiums and deposits [8][37] - North America Commercial net premiums written grew 18%, with Retail Property growing over 50% and Lexington growing 18% [24][60] Market Data and Key Metrics Changes - In North America, the accident year combined ratio ex-CATs was 85.1%, a 310 basis point improvement year-over-year [33] - International Commercial net premiums written grew 6%, primarily driven by property, which was up 34% [25] - The overall market exhibited more orderly behavior during mid-year renewals, with mid-year property cat pricing increasing 25% to 35% year-over-year in the U.S. [35] Company Strategy and Development Direction - The company is focused on strategic actions such as the divestiture of Validus Re and Crop Risk Services to streamline its business model and reduce volatility [11][18] - The launch of Private Client Select as an MGA aims to serve high and ultra-high net worth markets, addressing foundational challenges in these segments [19][20] - The company is committed to achieving a 10% plus ROCE post-deconsolidation of Corebridge, with a focus on improving underwriting profitability and reducing expenses [39][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver high-quality outcomes despite challenging market conditions, highlighting strong financial performance and strategic progress [6][7] - The company anticipates continued growth in net premiums written, particularly in the high and ultra-high net worth markets, with expectations of over 75% growth in the latter half of the year [31] - Management noted that the reinsurance environment has improved, allowing for better risk management and reduced volatility [36] Other Important Information - The company returned $822 million to shareholders in Q2 2023 through stock repurchases and dividends, reflecting a commitment to capital management [9][38] - The balance sheet remains strong, with $4.3 billion in parent liquidity and a focus on maintaining well-capitalized subsidiaries [53] - The company is exploring strategic alternatives for the disposition of its U.K. Life business as part of its ongoing efforts to streamline operations [23] Q&A Session Summary Question: Focus on North American Commercial business growth - Management highlighted strong growth across various segments, with Lexington and Retail Property showing significant increases, while Financial Lines faced headwinds [58][60] Question: Future CAT load expectations - Management indicated that CAT loads will decrease due to strategic actions taken, including the divestiture of Validus Re, which will reduce overall exposure [62][65] Question: Changes in rate increases and loss trends - Management confirmed that rate increases are outpacing loss cost inflation, with a disciplined approach to underwriting and capital deployment [68][70] Question: Specialty casualty submissions in Lexington - Management reported record submission counts in Lexington, indicating strong growth potential in the specialty casualty market [72][73] Question: Pro forma margin profile for North America Commercial - Management provided insights into the margin profile, noting that Validus Re's impact on combined ratios was positive, but its acquisition ratio was higher than normal [75][76]

Financial Position - Total assets increased to $537,138 million as of June 30, 2023, compared to $522,228 million at the end of 2022, reflecting a growth of approximately 2.0%[9] - Total liabilities rose to $490,647 million, up from $478,774 million at the end of 2022, indicating an increase of about 2.4%[9] - AIG shareholders' equity increased to $42,454 million, compared to $40,970 million at the end of 2022, representing a growth of approximately 3.6%[9] - The company reported a liability for unpaid losses and loss adjustment expenses of $70,284 million, down from $75,167 million at the end of 2022, a decrease of about 6.0%[9] - Common stock issued remained stable at 1,906,671,492 shares for both 2023 and 2022, with total common stock valued at $4,766 million[9] - Retained earnings increased to $35,916 million as of June 30, 2023, compared to $34,893 million at the end of 2022, reflecting an increase of approximately 2.9%[9] - The company’s total investments amounted to $306,758 million, a slight decrease from $309,150 million at the end of 2022, representing a decline of about 0.1%[9] - Cash and cash equivalents rose to $2,283 million, up from $2,043 million at the end of 2022, reflecting an increase of about 11.7%[9] - The company reported a total of 89,718 million in separate account assets at fair value, an increase from 84,853 million at the end of 2022, representing a growth of approximately 5.0%[9] Revenue and Income - Total revenues for Q2 2023 were $13,218 million, a decrease of 3.3% from $13,663 million in Q2 2022[11] - Net income attributable to AIG for Q2 2023 was $1,493 million, down 45.7% from $2,754 million in Q2 2022[11] - Net investment income for Q2 2023 was $3,571 million, an increase of 37.1% compared to $2,604 million in Q2 2022[11] - Policyholder benefits and losses incurred for Q2 2023 were $6,858 million, an increase of 37.5% from $4,984 million in Q2 2022[11] - Basic income per common share attributable to AIG common shareholders for Q2 2023 was $2.05, down from $3.47 in Q2 2022[11] - Total benefits, losses, and expenses for Q2 2023 were $11,351 million, an increase of 16.5% from $9,738 million in Q2 2022[11] - Comprehensive income attributable to AIG for Q2 2023 was $13 million, a significant recovery from a loss of $8,865 million in Q2 2022[13] - AIG reported a net income attributable to AIG or noncontrolling interests of $1,604 million for the six months ended June 30, 2023, compared to $3,079 million for the same period in 2022, reflecting a decrease of approximately 47.9%[18] - Net income for the six months ended June 30, 2023, was $1,604 million, a decrease of 79% compared to $7,639 million in 2022[21] Cash Flow and Investments - Net cash provided by operating activities increased to $1,111 million from $598 million year-over-year[21] - Total cash and restricted cash at the end of the period was $2,352 million, down from $2,728 million in the previous year[23] - Policyholder contract deposits rose to $15,920 million, compared to $12,491 million in the same period last year[21] - Net cash used in investing activities was $(641) million, a decrease from $2,534 million in 2022[21] - The company reported net losses on sales of securities available for sale and other assets of $786 million, compared to $749 million in 2022[21] - Interest paid during the period increased to $636 million from $574 million in the prior year[23] - The company experienced a net change in short-term investments of $743 million, down from $3,787 million in the prior year[21] - Total adjustments to reconcile net income to net cash provided by operating activities were $(493) million, compared to $(7,042) million in 2022[21] Shareholder Equity and Dividends - AIG's common stock dividends for the second quarter were $0.36 per share, totaling $260 million, compared to $0.32 per share and $248 million in the same quarter of the previous year, representing a 9.7% increase in dividends paid[16] - AIG's total shareholders' equity decreased from $58,666 million at the end of June 30, 2022, to $46,491 million at the end of June 30, 2023, reflecting a decline of approximately 20.7%[19] - The total equity at the end of the period was $46,491 million, an increase from $47,225 million at the end of June 30, 2022, indicating a decrease of about 1.6% year-over-year[18] - AIG's retained earnings at the end of the period were $35,916 million, compared to $32,092 million at the end of June 30, 2022, indicating an increase of approximately 12.5%[18] - The balance of preferred stock remained constant at $485 million throughout the reporting period[19] - AIG's additional paid-in capital was $4,766 million, consistent with the previous year, indicating stability in this area[18] Other Comprehensive Income - Other comprehensive loss for the second quarter was $1,738 million, compared to a loss of $12,617 million in the same quarter of the previous year, showing a significant improvement[16] - AIG's total comprehensive income for the six months ended June 30, 2023, was $2,175 million, compared to a total comprehensive loss of $12,617 million for the same period in 2022, marking a significant turnaround[18] - The company reported a change in the fair value of market risk benefits, net of $(262) million for Q2 2023, compared to $(45) million in Q2 2022[11] - The company experienced a change in unrealized depreciation of fixed maturity securities of $84 million in Q2 2023, compared to $36 million in Q2 2022[13]