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AIG(AIG) - 2024 Q3 - Quarterly Results
AIGAIG(AIG)2024-11-04 21:23

General Insurance Performance - General Insurance net premiums written of 6.4billion,adecreaseof16.4 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 437millioninQ32024[72]−Netpremiumswrittenonacomparablebasisincreasedby6.0437 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]−ThecombinedratioforTotalGeneralInsuranceincreasedfrom90.5(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)millionimpact[73]CommercialLinesPerformance−GlobalCommercialLinesnetpremiumswrittenof(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 2.445billion,butincreased112.445 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 632million,drivenbyHighNetWorthsegmentgrowth,withcombinedratioimprovingto111.5632 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 973million,anincreaseof14973 million, an increase of 14% from 856 million in the prior year quarter[9] - Returned approximately 1.8billionofcapitaltoshareholdersinthethirdquarterthrough1.8 billion of capital to shareholders in the third quarter through 1.5 billion of stock repurchases and 254millionofdividends[1]−Netinvestmentincomeincreasedby254 million of dividends[1] - Net investment income increased by 80 million YoY to 125million,primarilyduetodividendincomefromCorebridgeandhigheryieldsonshort−terminvestments[25]−GeneralInsuranceNetInvestmentIncomeonacomparablebasiswas125 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 792millioninQ32023[65]FinancialMetricsandRatios−Adjustedafter−taxincome(AATI)perdilutedsharewas792 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 71.46asofSeptember30,2024,anincreaseof4.571.46 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 1,089million,withanadjustedafter−taxincomeof1,089 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 2,020million[60]−Adjustedpre−taxincomefortheninemonthsendedSeptember30,2024,was2,020 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 791millionattributabletoAIGcommonshareholders[62]−Netincome(loss)attributabletoAIGcommonshareholdersfortheninemonthsendedSeptember30,2024,was791 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 0.75inQ32024comparedto0.75 in Q3 2024 compared to 0.97 in Q3 2023[64] - Net income attributable to AIG common shareholders dropped by 74.6% to 0.72inQ32024from0.72 in Q3 2024 from 2.83 in Q3 2023[64] - Adjusted after-tax income per diluted share increased by 18.3% to 1.23inQ32024from1.23 in Q3 2024 from 1.04 in Q3 2023[64] Costs and Expenses - Restructuring and other costs for Q3 2023 amounted to 49million[60]−RestructuringandothercostsfortheninemonthsendedSeptember30,2024,totaled49 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 64million[62]−NetlossreservediscountchargefortheninemonthsendedSeptember30,2024,was64 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 10million[62]−Non−recurringcostsrelatedtoregulatoryoraccountingchangesfortheninemonthsendedSeptember30,2024,were10 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 29millionYoYto29 million YoY to 150 million, reflecting benefits from AIG Next initiatives[25] - Interest expense decreased by 22millionYoYto22 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 44,742millioninQ32024from44,742 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]