AIG(US:AIG) ZACKS·2025-02-12 19:31Core Insights - American International Group, Inc. (AIG) reported fourth-quarter 2024 adjusted earnings per share of $1.30, exceeding the Zacks Consensus Estimate by 3.2% and showing a year-over-year improvement of 1.6% [1] - Adjusted operating revenues were $6.85 billion, a significant decline year over year, but still beating the consensus mark by 1.3% [2] - The fourth-quarter results were bolstered by new business production, strong retention, and reduced expenses, although lower premiums and high catastrophe charges partially offset these positives [2] Financial Performance - Total net investment income increased by 44.4% year over year to $1.3 billion, driven by higher income from alternative investments and dividends from Corebridge Financial, Inc. (CRBG), surpassing the consensus estimate by 50% [4] - Total benefits, losses, and expenses decreased by 6.9% year over year to $5.6 billion, attributed to lower general operating expenses and net gains from divestitures [5] - Adjusted return on equity improved by 70 basis points year over year to 7.2% [5] Segment Performance - General Insurance – North America Commercial segment reported net premiums written of $2.2 billion, a 5% increase year over year, benefiting from new business production and improved rate trends [6] - General Insurance – International Commercial segment saw net premiums written of $2.1 billion, up 9% year over year, aided by new business production [8] - General Insurance – Global Personal segment recorded net premiums written of $1.8 billion, a 2% increase year over year, with underwriting income improving nearly four-fold [10] Investment and Capital Management - AIG repurchased shares worth $1.8 billion and distributed dividends totaling $244 million [14] - As of December 31, 2024, AIG had a cash balance of $1.3 billion, total assets of $161.3 billion, and total equity of $42.6 billion, reflecting declines from the previous year [12] Full-Year Update - For the full year 2024, AIG's total revenues were $27.3 billion, down from $27.9 billion in 2023, while adjusted earnings improved to $4.95 per share from $4.42 [15]