American International Group, Inc. (AIG) is set to report its second-quarter 2024 results on Jul 31, after the closing bell.The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.39 per share, implying a decrease of 20.6% from the year-ago reported number. The estimate was revised downward by four analysts in the past month against one movement in the opposite direction, resulting in a decrease of 21.9% from $1.78 per share. The Zacks Consensus Estimate for second-quarter revenue ...

Core Insights - Analysts project that American International Group (AIG) will report quarterly earnings of $1.39 per share, a decline of 20.6% year over year, with revenues expected to reach $12.23 billion, down 6.9% from the same quarter last year [1] Earnings Estimates - There has been a 4% downward revision in the consensus EPS estimate over the last 30 days, indicating a collective reconsideration by analysts [1] - The consensus estimate for 'Adjusted Revenue- Life and Retirement- Net investment income' is projected at $2.74 billion, reflecting a year-over-year increase of 10.6% [2] - 'General Insurance- Net premiums earned' is estimated at $5.76 billion, indicating a decline of 11.4% year over year [2] - 'Adjusted Revenue- Group Retirement' is expected to reach $689.52 million, showing a slight decrease of 0.1% year over year [2] Additional Revenue Metrics - The consensus for 'Adjusted Revenue- Life Insurance' stands at $1.29 billion, suggesting a year-over-year increase of 0.5% [3] - 'Adjusted Revenue- Institutional Markets' is projected at $2.00 billion, indicating a decline of 15.5% from the prior-year quarter [3] Insurance Ratios - Analysts predict a 'Combined Ratio - Total General Insurance' of 92.0%, compared to 90.9% from the previous year [3] - The 'Expense Ratio - Total General Insurance' is expected to be 32.0%, up from 31.6% year over year [3] - The 'Loss Ratio - Total General Insurance' is forecasted to be 58.8%, slightly improved from 59.3% in the same quarter last year [3] Regional Combined Ratios - 'Combined Ratio - International - Commercial Lines' is estimated at 87.1%, compared to 89% from the previous year [4] - 'Combined Ratio - North America - Personal Insurance' is projected at 100.2%, down from 112.9% in the same quarter last year [4] - 'Combined Ratio - International - Personal Insurance' is expected to be 98.3%, slightly up from 98% year over year [4] - 'Combined Ratio - North America - Commercial Lines' is forecasted at 90.5%, compared to 85.6% from the previous year [4] Stock Performance - Over the past month, AIG shares have recorded a return of +0.4%, contrasting with the S&P 500 composite's -1.2% change [5] - AIG holds a Zacks Rank 3 (Hold), suggesting that its performance is likely to align with the overall market in the upcoming period [5]

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Group 1 - American International Group, Inc. (AIG) has entered into a definitive agreement to divest its global individual personal travel insurance and assistance business for $600 million in cash, with additional earn-out consideration to Zurich Insurance Group, expected to be completed by the end of 2024 [1] - The sale includes AIG's Travel Guard line and servicing capabilities, excluding Japan and its joint venture in India, as well as travel insurance offered through its Accident & Health line, which will simplify operations and free up capital for AIG [1] - AIG is focusing on its General Insurance business to improve profitability, bolster liquidity, and reduce portfolio volatility, as evidenced by recent divestments from global insurance organizations [2] Group 2 - AIG aims to become a pure-play Property and Casualty insurer, with improving underwriting results indicated by a 210 basis point improvement in the combined ratio in the first quarter [3] - AIG shares have gained 32.6% over the past year, outperforming the industry growth of 26% [4] - The company has repurchased shares worth $1.7 billion in Q1 2024 and $613 million in April, while also increasing its dividend by 11% in Q1 2024, indicating a commitment to enhancing shareholder value [2]

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Core Insights - The Zacks Multiline Insurance industry is benefiting from product diversification, which lowers concentration risk and enhances revenue generation and retention ratios. Companies like MetLife, AIG, Prudential, The Hartford, and Old Republic are expected to gain from improved pricing, prudent underwriting, and economic recovery [1] - The industry is experiencing a solid capital level that is likely to fuel merger and acquisition activities, with an improving rate environment expected to drive higher investment income for insurers [1] Industry Overview - The Zacks Multiline Insurance industry includes companies that provide bundled insurance coverage for various needs, improving customer retention and offering lower premium payments compared to individual policies [2] - The diversified portfolios of multiline insurers help lower concentration risk, with increased demand for protection products expected to boost sales and premiums, particularly in life insurance [3] Trends Impacting the Industry - Continued consolidation is anticipated as companies seek to diversify operations and gain market share, with a resurgence in M&A activities expected in 2024 [4] - The adoption of advanced technologies such as AI, blockchain, and cloud computing is transforming operations, enhancing efficiency, and enabling online policy sales [5] Industry Performance - The Zacks Multiline Insurance industry ranks 87, placing it in the top 35% of 249 Zacks industries, indicating a positive earnings outlook [6][7] - Over the past year, the industry has outperformed the Finance sector with a gain of 5.3%, while underperforming the S&P 500, which rose by 7% [8] Current Valuation - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 2.48X, lower than the S&P 500's 6.14X and the sector's 3.06X [10] Notable Companies - **Old Republic International (ORI)**: Zacks Rank 2, with a projected earnings increase of 3.8% for 2024 and 4.4% for 2025, supported by a strong capital position [11] - **American International Group (AIG)**: Zacks Rank 3, expected earnings growth of 4.4% in 2024 and 16% in 2025, driven by strategic derisking and acquisitions [13] - **MetLife (MET)**: Zacks Rank 3, with anticipated earnings growth of 17.6% for 2024 and 13.7% for 2025, focusing on cost control and efficiency [14] - **Prudential Financial (PRU)**: Zacks Rank 3, expected earnings growth of 15.4% in 2024 and 8.3% in 2025, with a strong asset management business [15] - **The Hartford Financial Services Group (HIG)**: Zacks Rank 3, projected earnings growth of 11.9% for 2024 and 14.3% for 2025, benefiting from improved mortgage insurance quality [16]

American International Group, Inc. (AIG) has recently marked a major milestone with the deconsolidation of Corebridge Financial, Inc. (CRBG) for accounting purposes. It gave up majority control over Corebridge's board of directors, signified by the resignation of Chris Schaper, AIG's executive vice president and global chief underwriting officer, from Corebridge's board, which now has 12 members.This action finalizes the long-awaited separation of the two companies. For several years, AIG meticulously plann ...

Core Viewpoint - Genesis AI Corp. has launched a wildfire prevention tool called Wildfire Defence Solutions, utilizing custom GPT and machine learning to help communities prepare for and mitigate the impact of wildfires [1][3]. Group 1: Product Overview - Wildfire Defence Solutions is designed for cities, towns, resorts, developers, and governments to estimate the costs of building resilient communities by classifying fuel types and mapping critical infrastructure [1]. - The software automates Community Wildfire Protection Plans, providing real-time updates on wildfire risks and costs associated with "FireSmart" protection techniques [3]. - It integrates various public data sources, including historical fire data, weather information, and land ownership analysis, allowing clients to choose service resolutions based on their risk levels [4]. Group 2: Market Context - CNN estimates the annual cost of wildfires in the US to be between $87.4 billion and $427.8 billion, highlighting the financial impact of wildfires on communities [2]. - The software aims to address critical prevention efforts needed to reduce the financial burden and impact of wildfires [2]. Group 3: Company Developments - CEO Devinder Randhawa emphasizes the company's commitment to providing real solutions for wildfire issues in North America, drawing from personal experiences with past wildfires [5]. - The company has appointed Mr. Jordan Potts to the Board of Directors, who brings extensive experience in public markets and fundraising for junior exploration companies [5]. - Mr. Jeremy Wiebe has transitioned to the Advisory Board, allowing him to continue contributing his expertise [6]. Group 4: Future Directions - Genesis AI Corp. is exploring opportunities in precision geospatial, forestry analytics, and carbon sectors through AI, with ongoing development of a generative AI model called Woodlands.ai [7].

Core Insights - AIG has successfully repositioned its underwriting standards and results, moving from a highly unprofitable portfolio to delivering strong underwriting results, with 2023 being highlighted as the best year yet [2][4] - The company is focused on its strategic priorities, including the deconsolidation of Corebridge and the continued sell-down of AIG shares, which are essential for future growth and financial flexibility [2][7] - AIG Next is an initiative aimed at reducing expenses and streamlining operations, which is expected to save $500 million by the end of 2025 [3][46] Underwriting Performance - From 2018 to 2023, AIG's Commercial Lines combined ratio improved by 2,600 basis points, indicating significant progress in underwriting performance [6] - The company has reduced its catastrophe (CAT) ratio from 16% in 2017 to 4.7% in 2023, showcasing a dramatic decrease in volatility [4][5] - AIG has divested from high-volatility businesses, such as reinsurance and crop risk services, to focus on core areas with better growth potential [6] Financial Flexibility and Capital Management - AIG has generated $2.9 billion from three secondary offerings and $3.8 billion from a 20% sale to Nippon Life, enhancing its financial flexibility [7][9] - The company has significantly reduced its debt, projecting a debt-to-capital ratio of 15% to 20% upon deconsolidation [8] - AIG has a $10 billion share authorization program, reflecting its strong liquidity and plans for capital return to shareholders [9] Growth Strategy - AIG is pivoting towards growth while maintaining underwriting discipline, emphasizing a culture of underwriting excellence [11][12] - The company is focusing on high-growth areas such as Lexington and global specialties, which have shown strong performance [17][18] - AIG aims to increase its non-admitted personal lines business, particularly in high net worth segments, to capture more market share [61] Market Dynamics - The excess and surplus (E&S) market has grown from $34 billion in 2003 to $114 billion today, indicating a significant shift in market dynamics [24] - AIG's wholesale division has experienced a compound annual growth rate of 20% from 2017 to 2023, reflecting successful strategic changes [29] - The company is well-positioned to navigate market cycles, with a focus on maintaining strong underwriting terms and pricing [52][53] International Opportunities - AIG sees substantial growth potential in Japan and India, with plans for significant organic growth in these markets [63][67] - The joint venture with Tata in India is expected to double the size of the business to between $3.5 billion and $4 billion in top line revenue over the next five years [67] Financial Lines and Risk Management - AIG is one of the lead markets in financial lines, setting terms and pricing in a market that has been challenging in recent years [70] - The company has adjusted its risk appetite, particularly in casualty lines, to mitigate exposure to volatility and ensure profitability [42]

Group 1: AIG's Divestment and Strategic Moves - AIG has agreed to divest approximately 120 million common stocks of its Corebridge Financial subsidiary to Nippon Life Insurance for $3.8 billion, equating to a 20% ownership stake in CRBG [1] - The divestment is expected to be finalized by Q1 2025, with AIG retaining a 9.9% stake in CRBG for two years post-transaction [1] - This move is aimed at enhancing Corebridge's investor base and expanding Nippon Life's presence in the U.S. market [1] Group 2: Financial Performance and Strategic Focus - AIG closed the IPO of Corebridge in September 2022 and has been reducing its ownership through secondary offerings to generate cash [2] - The company is streamlining operations to focus on its General Insurance business, which is expected to improve profitability and reduce portfolio volatility [2] - Recent divestments from global insurance organizations highlight AIG's commitment to refocusing on core operations [2] Group 3: Stock Performance - AIG shares have increased by 50.8% over the past year, outperforming the industry growth of 28.7% [4]