AIG(US:AIG)2023-11-02 14:21Financial Data and Key Metrics Changes - Adjusted after-tax income was $1.2 billion or $1.61 per diluted common share, representing a 92% increase year-over-year [8][38] - Consolidated net investment income on an adjusted pre-tax income basis was $3.3 billion, a 29% increase year-over-year [8] - General Insurance underwriting income improved over 250% from the prior year quarter to $611 million [8] Business Line Data and Key Metrics Changes - In General Insurance, net premiums written grew 9% year-over-year to $6.5 billion [14] - Life and Retirement's adjusted pre-tax income was $971 million, up 24% year-over-year, with premiums and deposits growing 4% to $9.2 billion [9][46] - The accident year combined ratio for General Insurance, excluding catastrophes, improved by 210 basis points to 86.3% [8][23] Market Data and Key Metrics Changes - North America commercial net premiums written increased 5% in the third quarter [14] - International Commercial net premiums written grew 7%, primarily driven by property, which was up 13% [18] - Personal Insurance net premiums written increased 16% year-over-year, primarily driven by North America [22] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and reducing volatility through strategic divestitures, including the sale of Validus Re [11][36] - AIG aims for a 10% plus return on common equity (ROCE) post deconsolidation of Corebridge [34][50] - The company is committed to maintaining a balanced capital management strategy, focusing on share repurchases and debt reduction [33][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting results and the strategic repositioning of the company [35][36] - The company is well-positioned to take advantage of opportunities in the current marketplace despite challenges from social inflation [32][66] - Management highlighted the importance of maintaining strong underwriting standards and risk management practices [27][41] Other Important Information - AIG returned over $1 billion to shareholders through stock repurchases and dividends during the quarter [11] - The company expects continued improvement in financial performance from its Personal Insurance segment [23] - Corebridge Financial is on track for operational separation, with significant returns to shareholders since its IPO [10][39] Q&A Session Summary Question: What is the process for ensuring that the adverse development in international commercial doesn't reflect social inflation problems? - Management explained that the DVR process involves a deep dive into reserves annually, with adjustments made quarterly based on actual versus expected analysis [54][56] Question: Can you provide insight into the underlying underwriting results and path to profitability in North America Personal? - Management acknowledged that the segment is in transition and expects significant benefits from premium earnings in the coming quarters [58][59] Question: How is the company managing through the cycle in financial lines given the current market conditions? - Management indicated a cautious approach to the large account public company D&O business, focusing on maintaining margins and reducing limits in excess layers [61][66]