AIG Delivers Q3 Earnings Surprise on Investment Income Growth

Core Insights - American International Group, Inc. (AIG) reported third-quarter 2024 adjusted earnings per share of $1.23, exceeding the Zacks Consensus Estimate by 8.9% and showing an 18.3% year-over-year improvement [1] - Adjusted operating revenues were $6.84 billion, a decline of 5.9% year over year, but still beating the consensus mark by 3.3% [1][2] Financial Performance - Premiums for the quarter totaled $5.9 billion, down 9.1% year over year, yet surpassing the Zacks Consensus Estimate by 3.9% [3] - Total net investment income increased by 13.7% year over year to $973 million, driven by higher income from fixed maturity securities and dividends from Corebridge Financial, Inc. [3] - Total benefits, losses, and expenses decreased by 1.1% year over year to $6.1 billion, attributed to lower policyholder benefits and losses [4] Segment Analysis - In the General Insurance segment, net premiums written were $6.38 billion, a 1% decline year over year, but a 6% increase on a comparable basis [5] - Underwriting income fell by 28% on a reported basis to $437 million, impacted by increased catastrophe charges [6] Investment and Capital Management - AIG repurchased shares worth $1.5 billion and distributed dividends totaling $254 million [10] - The company ended the quarter with a cash balance of $1.47 billion, down from $1.54 billion at the end of 2023 [8] Financial Position - Total assets decreased to $169.45 billion from $539.31 billion at the end of 2023 [8] - Total equity fell to $45.1 billion from $51.3 billion at the end of 2023, with adjusted book value per share declining by 9.1% year over year to $73.90 [9]