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Why Is American International Group (AIG) Up 1.6% Since Last Earnings Report?
ZACKS· 2024-08-30 16:37
A month has gone by since the last earnings report for American International Group (AIG) . Shares have added about 1.6% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is American International Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. AIG Q2 Earnings Mi ...
3 Must-Watch Stocks After a Bullish Goldman Sachs Recommendation
MarketBeat· 2024-08-12 14:33
Investors are shaken up after last week's volatility in the stock market, which rocked indexes from Tokyo to New York. This left all participants with the concern that more could be coming in the following weeks. Knowing that there is a confidence gap to be filled for those who rely on professional advice and information, some banks have stepped forward to help out.Today, Goldman Sachs Group Inc. NYSE: GS analysts shed some light on the potential selection criteria that could help investors navigate today's ...
AIG Q2 Earnings Miss Estimates on High Catastrophe Losses
ZACKS· 2024-08-01 19:30
American International Group, Inc. (AIG) reported second-quarter 2024 adjusted earnings per share of $1.16, which missed the Zacks Consensus Estimate by 16.6%. However, the bottom line improved 9.4% year over year.Operating revenues amounted to $6.6 billion, which declined 11.8% year over year. However, the top line significantly missed the consensus mark.The weaker-than-expected results were caused by an increase in catastrophe losses and higher general operating and other expenses. This was partially offs ...
AIG(AIG) - 2024 Q2 - Earnings Call Presentation
2024-08-01 16:14
Second Quarter 2024 Financial Results Presentation July 31, 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. Q2 2024 Earnings Key Themes • Exceptional second quarter financial and operational performance across all of AIG • Delivered outstanding underwriting results, inclusive of catastrophes, with continued expense discipline • Global Commercial had an excellent quarter with st ...
AIG(AIG) - 2024 Q2 - Earnings Call Transcript
2024-08-01 16:13
Financial Data and Key Metrics Changes - Adjusted after-tax income was $775 million, or $1.16 per diluted share, representing a 38% increase in earnings per share year-over-year [9] - General Insurance net premiums written grew 7%, with underwriting income at $430 million, and an underlying underwriting income improvement of $110 million or 17% year-over-year [10] - Consolidated net investment income on an adjusted pre-tax income basis was $884 million, a 14% increase year-over-year [10] Business Line Data and Key Metrics Changes - Gross premiums written for General Insurance were $9.9 billion, an increase of 7% from the prior year, with net premiums written at $6.9 billion [18] - Global Commercial net premiums written grew 8%, while Global Personal net premiums written increased by 5% year-over-year [19][22] - North America Commercial net premiums written grew 10%, with Lexington achieving a 16% growth [19] Market Data and Key Metrics Changes - International Commercial produced new business of $522 million for the quarter, an increase of 9% year-over-year [21] - The accident year combined ratio for General Insurance, excluding catastrophes, improved by 170 basis points year-over-year to 87.6% [22] - The CAT loss ratio was 5.7%, or $325 million of total catastrophe-related losses [10] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and has announced the sale of its global individual personal travel insurance business [15] - AIG is committed to its high net worth business, having invested over $100 million in infrastructure and digital capabilities [17] - The company aims to achieve a combined ratio of 91.6% or lower for the full year 2025, driven by strong underwriting and expense reduction [73] Management's Comments on Operating Environment and Future Outlook - Management noted that the outlook for natural catastrophes in the second half of 2024 is uncertain, with predictions of above-average hurricane activity [25] - The company has maintained a disciplined approach to capital management, having deployed over $30 billion in cash towards this strategy over the last three years [30] - Management expressed confidence in the portfolio's profitability despite challenges in the property market [66] Other Important Information - The deconsolidation of Corebridge Financial was a significant milestone, impacting AIG's financials and simplifying its income statement [39][57] - AIG's shareholders' equity increased to $44.4 billion at June 30, 2024, reflecting a $1.1 billion net increase in the quarter [48] - The company expects its adjusted tax rate for 2024 to be about 24% before discrete items [57] Q&A Session Summary Question: Impact of the updated combined ratio trajectory guidance for 2025 - Management clarified that the guidance does not contemplate any improvement in the loss ratio, focusing instead on expense ratio reductions [63] Question: General sense of the impact of the sale of the travel insurance on underwriting results - Management indicated that the premium impact would be $750 million, but the overall combined ratio impact would be minimal [68] Question: Favorable development in excess casualty - Management confirmed that favorable development was primarily from older years rather than recent years, with detailed analysis conducted on reserves [72]
AIG(AIG) - 2024 Q2 - Quarterly Report
2024-08-01 15:04
Financial Position - Total assets decreased from $539,306 million on December 31, 2023, to $167,890 million on June 30, 2024[10]. - Total liabilities decreased from $488,005 million on December 31, 2023, to $123,415 million on June 30, 2024[10]. - Total equity decreased from $51,301 million on December 31, 2023, to $44,475 million on June 30, 2024[10]. - The company reported a decrease in retained earnings from $37,516 million to $34,225 million[10]. - Goodwill decreased slightly from $3,422 million to $3,407 million[10]. - Long-term debt decreased from $10,375 million in December 2023 to $9,861 million in June 2024, a decline of about 4.9%[10]. - AIG's total equity at the end of the period was $44,475 million, a decrease from $51,301 million at the beginning of the year[21]. - AIG's retained earnings decreased to $34,225 million at the end of the period, down from $37,516 million at the beginning of the year[21]. - The balance of treasury stock increased to $(62,255) million at the end of the period, compared to $(59,189) million at the beginning of the year[21]. - The company reported an accumulated other comprehensive loss of $(7,565) million at the end of the period[21]. Revenue and Income - Total revenues for Q2 2024 were $6,560 million, a decrease of 11.8% from $7,436 million in Q2 2023[14]. - Net income attributable to AIG for Q2 2024 was a loss of $3,977 million, compared to a profit of $1,485 million in Q2 2023[14]. - Comprehensive income attributable to AIG for Q2 2024 was $2,717 million, compared to $13 million in Q2 2023[15]. - AIG reported a net loss attributable to the company of $2,761 million for the six months ended June 30, 2024, compared to a net income of $1,523 million for the same period in 2023[21]. - Basic income (loss) per common share attributable to AIG common shareholders was $(6.02) for Q2 2024, compared to $2.05 in Q2 2023[14]. - The company reported total net realized losses of $(180) million in Q2 2024, compared to $(14) million in Q2 2023[14]. - The company experienced a net realized loss of $(267) million for the six months ended June 30, 2024, compared to $(525) million for the same period in 2023[14]. Cash Flow and Investments - Net cash provided by operating activities for continuing operations was $1,553 million for the six months ended June 30, 2024, compared to $1,433 million in the same period of 2023, reflecting a 8.4% increase[23]. - Cash flows from investing activities for continuing operations showed a significant increase, with net cash provided amounting to $2,875 million in the first half of 2024, compared to only $191 million in the same period of 2023[23]. - The company reported a net cash used in financing activities of $4,557 million for continuing operations, compared to $148 million in the previous period, highlighting a substantial increase in cash outflows[24]. - Total cash and restricted cash at the end of the period was $1,402 million, down from $1,560 million at the end of June 2023, indicating a decrease of 10.1%[27]. - Cash flows from discontinued operations showed a net cash used of $104 million, an improvement from $322 million in the previous year[23]. - The company reported a net cash used in investing activities of $1,296 million for the first half of 2024, compared to $641 million in the same period of 2023, indicating an increase in cash outflows[24]. Expenses and Losses - Losses and loss adjustment expenses incurred were $3,467 million in Q2 2024, down from $3,979 million in Q2 2023[14]. - The total benefits, losses, and expenses for Q2 2024 were $5,943 million, a decrease from $6,550 million in Q2 2023, reflecting cost control efforts[14]. - Interest paid during the period was $470 million, a decrease from $636 million in the same period last year, representing a 26.1% reduction[27]. - The company experienced a net loss on divestitures of $102 million in the first half of 2024, compared to a gain of $12 million in the same period of 2023[23]. - Unrealized gains in earnings were reported at $(349) million for the first half of 2024, compared to $(33) million in the same period of 2023, indicating a worsening in unrealized gains[23]. - Depreciation and other amortization expenses decreased to $1,751 million in the first half of 2024 from $2,024 million in the same period of 2023, a reduction of 13.4%[23]. Shareholder Activities - The company declared dividends on common stock of $0.76 per share for the six months ended June 30, 2024, totaling $504 million[21]. - The company purchased common stock worth $3,359 million during the six months ended June 30, 2024[21]. - Contributions from noncontrolling interests amounted to $28 million during the six months ended June 30, 2024[21]. - AIG experienced a net increase due to divestitures and acquisitions of $119 million for the six months ended June 30, 2024[21].
American International Group (AIG) Reports Q2 Earnings: What Key Metrics Have to Say
ZACKS· 2024-08-01 02:02
Core Insights - American International Group (AIG) reported a significant decline in revenue for the quarter ended June 2024, with total revenue at $6.64 billion, down 49.5% year-over-year and missing the Zacks Consensus Estimate by 45.73% [1] - Earnings per share (EPS) for the quarter was $1.16, a decrease from $1.75 in the same quarter last year, and also fell short of the consensus estimate of $1.39 by 16.55% [1] Financial Performance Metrics - Combined Ratio for Total General Insurance was reported at 92.5%, slightly above the average estimate of 92% from four analysts [3] - Expense Ratio for Total General Insurance was 31.5%, better than the average estimate of 32% [4] - Loss Ratio for Total General Insurance was 61%, higher than the estimated 58.8% [4] - Combined Ratio for International - Commercial Lines was 88.6%, compared to the average estimate of 87.1% [4] - Combined Ratio for North America - Personal Insurance was 105.3%, exceeding the estimate of 100.2% [4] Premiums and Investment Income - Net premiums earned in General Insurance were $5.75 billion, slightly below the estimate of $5.76 billion, representing an 11.5% decline year-over-year [5] - Net premiums written in General Insurance were $6.93 billion, surpassing the estimate of $6.53 billion, but reflecting an 8% decrease from the previous year [7] - Adjusted Revenue from Other Operations showed a significant drop in other income at $4 million, compared to the estimate of $12.33 million, marking a 55.6% decline year-over-year [6] - Adjusted Revenue from Other Operations for net investment income was $141 million, exceeding the estimate of $71.56 million, with a year-over-year increase of 64% [8] - General Insurance's net investment income was reported at $746 million, below the estimate of $791.62 million, but showing a 2.9% increase from the previous year [10] Stock Performance - AIG shares have returned +4.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.4% change [11] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [11]
American International Group (AIG) Q2 Earnings and Revenues Lag Estimates
ZACKS· 2024-07-31 23:15
Company Performance - American International Group (AIG) reported quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.39 per share, and down from $1.75 per share a year ago, representing an earnings surprise of -16.55% [1] - The company posted revenues of $6.64 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 45.73%, and down from $13.14 billion year-over-year [1] - Over the last four quarters, AIG has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Stock Performance - AIG shares have increased approximately 16.6% since the beginning of the year, outperforming the S&P 500's gain of 14% [2] - The current consensus EPS estimate for the upcoming quarter is $1.56 on revenues of $12.15 billion, and for the current fiscal year, it is $6.40 on revenues of $49.29 billion [4] Industry Outlook - The Zacks Industry Rank for Insurance - Multi line is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [5] - Another company in the same industry, Kemper, is expected to report quarterly earnings of $1.19 per share, reflecting a year-over-year change of +557.7%, with revenues expected to be $1.08 billion, down 15% from the year-ago quarter [5][6]
AIG(AIG) - 2024 Q2 - Quarterly Results
2024-07-31 20:21
Financial Performance - General Insurance net premiums written (NPW) were $6.9 billion, a decrease of 8% on a reported basis, but an increase of 7% on a comparable basis, driven by 10% growth in North America Commercial[1]. - Adjusted after-tax income per diluted share was $1.16, a 9% increase from the prior year quarter, and a 38% increase on a comparable basis[2]. - AIG returned almost $2.0 billion to shareholders, including $1.7 billion in stock repurchases and $261 million in dividends[1][11]. - Total net investment income for the second quarter was $990 million, an 18% increase from $837 million in the prior year quarter[10]. - AIG reported adjusted pre-tax income of $1,041 million for the three months ended June 30, 2023, compared to $1,288 million for the same period in 2022, reflecting a decrease of approximately 19.2%[55]. - The net income attributable to AIG common shareholders for the six months ended June 30, 2023, was $1,508 million, down from $2,010 million in the same period last year, representing a decline of about 25%[58]. - AIG's adjusted after-tax income attributable to common shareholders excludes various non-operating items, providing a clearer view of profitability[46]. - Income from continuing operations for the three months ended June 30, 2024, was $1.15 per share, a decrease of 37.4% compared to $0.72 in the same period of 2023[61]. - Net income attributable to AIG common shareholders for the three months ended June 30, 2024, was $2.05 per share, compared to a loss of $6.02 per share in the same period of 2023[61]. - Adjusted after-tax income attributable to AIG common shareholders per diluted share for the three months ended June 30, 2024, was $1.06, an increase of 9.4% from $1.16 in the same period of 2023[61]. Insurance Operations - Record Commercial Lines new business reached $1.3 billion, an 18% year-over-year increase, with strong global retention[1]. - General Insurance combined ratio was 92.5%, an increase of 160 basis points year-over-year, while the accident year combined ratio improved by 40 basis points to 87.6%[1][2]. - North America Commercial Lines net premiums written decreased by 19% year-over-year to $3,410 million, but increased by 10% on a comparable basis[15]. - The combined ratio for North America Commercial Lines increased by 460 basis points to 90.2%, driven by a higher loss ratio and changes in business mix[15]. - North America Personal Insurance net premiums written grew by 8% year-over-year to $563 million, primarily due to positive rate changes in High Net Worth[17]. - The combined ratio for North America Personal Insurance improved by 760 basis points to 105.3%, driven by favorable development in prior year loss reserves[17]. - International Commercial Lines net premiums written increased by 3% year-over-year to $2,223 million, or 6% on a comparable basis, attributed to growth in Global Specialty and Property[19]. - The combined ratio for International Commercial Lines improved by 40 basis points to 88.6%, primarily due to favorable development in prior year loss reserves[19]. - International Personal Insurance net premiums written declined by 4% year-over-year to $1,341 million, but grew by 3% on a comparable basis[20]. - The combined ratio for International Personal Insurance improved by 100 basis points to 97.0%, driven by lower catastrophe loss ratio and expense ratio[20]. Investment and Capital Management - The company executed nearly $5 billion in capital management actions in the first half of 2024, including $3.3 billion in share repurchases[4]. - Book value per share increased to $68.40 as of June 30, 2024, while adjusted book value per share was $72.78[11]. - AIG's total debt to total capital ratio was 18.1% as of June 30, 2024, indicating a strong balance sheet[11]. - Total AIG shareholders' equity increased from $42,454 million as of June 30, 2023, to $44,445 million as of June 30, 2024[65]. - Book value per share increased by 16.9% from $58.49 as of June 30, 2023, to $68.40 as of June 30, 2024[65]. - Average adjusted common shareholders' equity for the three months ended June 30, 2024, was $50,270 million, compared to $57,016 million in the same period of 2023[68]. - General Insurance Net Investment Income on an APTI basis was $725 million for the three months ended June 30, 2023, compared to $746 million for the same period in 2024[62]. - The company reported total net investment income of $775 million for the three months ended June 30, 2023, compared to $884 million for the same period in 2024[62]. - Net investment income on Fortitude Re funds withheld was reported at $383 million for the six months ended June 30, 2023, compared to $294 million in the same period of 2022, marking an increase of approximately 30.2%[58]. Risk Management and Regulatory Environment - AIG's reliance on third-party investment managers and the concentration in investment portfolios pose potential risks to financial performance[30]. - The effectiveness of AIG's enterprise risk management policies is crucial for adequately assessing risk and estimating related losses[30]. - The impact of regulatory changes and sanctions, particularly related to the Russia-Ukraine conflict, could significantly affect AIG's operations[30]. - AIG's total tax charge for the three months ended June 30, 2023, was $256 million, compared to $110 million for the same period in 2022, indicating an increase of approximately 132.7%[55]. - AIG's total tax benefits for the three months ended June 30, 2023, were $403 million, compared to $110 million for the same period in 2022, indicating an increase of approximately 267.3%[58]. Operational Efficiency - Other Operations adjusted pre-tax loss improved by $120 million year-over-year, primarily due to higher net investment income and lower interest expenses[22]. - Total net investment income increased by $89 million from the prior year quarter, driven by dividend income from Corebridge and higher yields on short-term investments[23]. - The general operating expense ratio on a comparable basis remained stable at 12.4% for both periods[73]. - Adjusted pre-tax income, excluding Crop Risk Services and Validus Re, was $430 million for the three months ended June 30, 2024, compared to $420 million in the same period last year[78]. - The accident year combined ratio, as adjusted, for North America - Personal Insurance improved to 101.8% from 107.1% year-over-year[76]. - Catastrophe losses and reinstatement premiums for the total general insurance segment increased to $(5.7) million for the three months ended June 30, 2024, compared to $(3.9) million in the prior year[73]. - The loss ratio for North America - Commercial Lines increased to 67.4% from 61.0% year-over-year[73]. - The combined ratio for International - Personal Insurance improved to 97.0% from 98.0% year-over-year[76]. - Adjusted pre-tax income, as reported, was $1,176 million for the three months ended June 30, 2024, down from $1,319 million in the prior year[79].
Will American International's (AIG) Q2 Earnings Hit a Pothole?
ZACKS· 2024-07-29 17:00
American International Group, Inc. (AIG) is set to report its second-quarter 2024 results on Jul 31, after the closing bell.The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.39 per share, implying a decrease of 20.6% from the year-ago reported number. The estimate was revised downward by four analysts in the past month against one movement in the opposite direction, resulting in a decrease of 21.9% from $1.78 per share. The Zacks Consensus Estimate for second-quarter revenue ...