AIG Reports Excellent Fourth Quarter and Full Year 2023 Results

Core Insights - AIG reported strong financial results for 2023, with adjusted after-tax income per diluted share increasing by 33% to $6.79, reflecting excellent underwriting performance and strategic initiatives [1][6][5] - The company achieved a 15% year-over-year increase in underwriting income within General Insurance, totaling $2.3 billion, with a combined ratio improvement of 130 basis points to 90.6% [2][3] - Life & Retirement segment saw total premiums and deposits exceed $40 billion, benefiting from spread expansion and strong sales [3][14] General Insurance Performance - General Insurance net premiums written rose by 5% year-over-year, driven by a 17% increase in Lexington and a 10% increase in Global Specialty [3][12] - The accident year combined ratio improved to 87.7%, a 100 basis point improvement year-over-year, indicating effective management of underwriting risks [2][13] - North America Commercial Lines pricing increased by 7%, outpacing loss cost trends, while global commercial pricing rose by 6% [3][12] Life & Retirement Segment - Life & Retirement adjusted pre-tax income increased by 12% to $957 million, with Individual Retirement segment showing a significant 34% growth [14][16] - Total premiums and deposits in the Life & Retirement segment grew by 20% to $10.6 billion, driven by strong pension risk transfer volumes [16][14] - Net investment income for Life & Retirement on an APTI basis increased by 15% to $2.6 billion, reflecting higher income from fixed maturity securities and loans [16][15] Capital Management and Shareholder Returns - AIG reduced financial debt by $1.4 billion and returned approximately $4 billion to shareholders through stock repurchases and dividends, including a 12.5% increase in the common stock dividend [4][5] - The company maintained a strong liquidity position with $7.6 billion as of December 31, 2023, up $4 billion from the previous quarter [8][4] - Book value per common share increased by 16% from the previous quarter to $65.14, driven by a decrease in accumulated other comprehensive loss [8][11] Future Outlook - AIG enters 2024 with significant momentum, focusing on excellent underwriting, operations, and claims service to drive continued growth [5][1] - The company plans to deconsolidate Corebridge in 2024, which is expected to enhance visibility into its business and capital structure [4][5]