AIG(AIG) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2024 were $6,751 million, a decrease of 7.1$7,267 million in Q3 2023[6]. - Net income attributable to AIG for Q3 2024 was $459 million, compared to$2,027 million in Q3 2023, reflecting a decline of 77.3%[6]. - Basic earnings per share (EPS) for continuing operations was $0.75 in Q3 2024, down from$0.97 in Q3 2023, a decrease of 22.7%[6]. - Comprehensive income attributable to AIG for Q3 2024 was $2,302 million, compared to a loss of$1,459 million in Q3 2023[8]. - AIG reported a net loss attributable to the company of $1,518 million for the three months ended September 30, 2024, compared to a net income of$2,027 million for the same period in 2023[9]. - For the nine months ended September 30, 2024, AIG reported a net loss attributable to the company of $2,302 million, compared to a net income of$3,550 million for the same period in 2023[11]. Investment Income - Net investment income for Q3 2024 was $973 million, an increase of 13.7$856 million in Q3 2023[6]. - Net investment income for Q3 2024 was $773 million, compared to$756 million in Q3 2023, representing a growth of 2.3%[28]. - The company reported a net investment income of $2,281 million for the nine months ended September 30, 2024, compared to$2,227 million in the same period of 2023[30]. Expenses and Losses - Losses and loss adjustment expenses incurred in Q3 2024 were $3,773 million, slightly down from$3,876 million in Q3 2023[6]. - Total benefits, losses, and expenses for Q3 2024 were $6,102 million, a decrease of 1.1$6,167 million in Q3 2023[6]. - The company reported net realized losses of $167 million in Q3 2024, compared to losses of$135 million in Q3 2023[6]. - The company reported a net realized loss of $232 million for the nine months ended September 30, 2024, compared to a loss of$577 million in the same period of 2023[30]. Shareholder Equity and Dividends - Total AIG shareholders' equity at the end of the period was $45,039 million, a decrease from$46,491 million at the end of September 30, 2023[9]. - The company declared dividends on common stock of $0.40 per share, totaling$254 million for the quarter[9]. - AIG's additional paid-in capital increased to $75,310 million as of September 30, 2024, compared to$77,677 million a year earlier[9]. - AIG's retained earnings stood at $34,429 million at the end of the period, compared to$34,893 million at the end of September 30, 2023[11]. Cash Flow and Liquidity - Net cash provided by operating activities for continuing operations was $3,252 million for the nine months ended September 30, 2024, compared to$4,743 million in the same period of 2023, reflecting a decrease of approximately 31.4%[12]. - Total cash and restricted cash at the end of the period was $1,559 million, an increase from$1,451 million at the end of September 30, 2023[14]. - Cash paid for interest during the period was $581 million, a decrease from$745 million in the same period of 2023[14]. Insurance Operations - Total adjusted revenues for General Insurance in Q3 2024 were $6,720 million, a decrease of 7.7$7,178 million in Q3 2023[28]. - North America underwriting income was $2,638 million in Q3 2024, down from$3,079 million in Q3 2023, reflecting a decline of 14.3%[28]. - International underwriting income was $3,309 million in Q3 2024, slightly down from$3,343 million in Q3 2023, a decrease of 1.0%[28]. - Total adjusted pre-tax income for General Insurance was $1,210 million in Q3 2024, down from$1,367 million in Q3 2023, a decline of 11.5%[28]. Discontinued Operations - The company experienced a significant decline in income from discontinued operations, reporting a loss of $24 million in Q3 2024 compared to income of$2,046 million in Q3 2023[6]. - AIG's net income from discontinued operations attributable to AIG for the nine months ended September 30, 2024, was a loss of $4.1 billion, compared to a profit of$1.7 billion for the same period in 2023[39]. - AIG announced the sale of its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million in cash, expected to close by the end of 2024[17]. Corebridge Financial - AIG entered into a stock purchase agreement to sell 20$3.8 billion, expected to close in Q1 2025[32]. - AIG recognized a loss of $4.7 billion in Q2 2024 due to the deconsolidation of Corebridge, primarily from an accumulated comprehensive loss of$7.2 billion[35]. - As of September 30, 2024, AIG held 48.6% of Corebridge's outstanding common stock after a secondary offering of 30 million shares that generated gross proceeds of $876 million[34]. - Corebridge's pre-tax income for the three months ended September 30, 2024, was a loss of$1.6 billion, while for the nine months, it was a loss of $122 million[36]. Asset Management - Total assets held for sale from discontinued operations amounted to$378.7 billion as of September 30, 2024, compared to $366.1 billion as of December 31, 2023[37]. - The total fair value of assets measured at fair value on a recurring basis as of September 30, 2024, is$84.993 billion, with $14.033 billion classified as Level 1,$67.308 billion as Level 2, and $4.169 billion as Level 3[43]. - The total gross unrealized losses on available-for-sale securities amount to$2,767 million as of September 30, 2024[67]. Derivative and Risk Management - The company uses interest rate derivatives to manage interest rate risk associated with various financial instruments, including insurance contract liabilities[109]. - The company employs foreign exchange derivatives to mitigate risks associated with non-U.S. dollar denominated debt and foreign currency transactions[109]. - The total gross derivative notional amount as of September 30, 2024, was $6,417 million, with a fair value of derivative assets at$619 million[110]. Legal and Regulatory Matters - Legal proceedings may result in significant future losses, but management does not believe these will materially affect the financial position[134]. - The company is subject to various legal proceedings that could lead to fines, penalties, or reputational damage[134].