American International Group (AIG) Reports Q2 Earnings: What Key Metrics Have to Say

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]