AIG(US:AIG)2024-05-02 16:07Financial Data and Key Metrics Changes - Adjusted after-tax income was $1.2 billion or $1.77 per diluted common share, representing a 9% increase in earnings per share year-over-year [9] - Consolidated net investment income on an adjusted pretax income basis was $3.5 billion, a 13% increase year-over-year [9] - General insurance underwriting income was $596 million, a 19% increase year-over-year [9] - The accident year combined ratio excluding catastrophes improved by 30 basis points to 88.4% [10] Business Line Data and Key Metrics Changes - Life & Retirement segment reported premiums and deposits of $10.7 billion, the highest quarterly result in the last decade, with strong APTI growth of 12% [10] - General Insurance net premiums written were $4.5 billion, reflecting the impact of divestitures [14] - North America Commercial net premiums written grew 4%, with Lexington growing 24% [14] - International Commercial net premiums written were flat, with International Property growing 23% [16] Market Data and Key Metrics Changes - Global Commercial net premiums written growth was 1% year-over-year when excluding divestitures [14] - North America Financial Lines declined 4% year-over-year, indicating a challenging market environment [15] - International Financial Lines experienced a 5% decline [16] Company Strategy and Development Direction - The company aims for a 10% plus ROCE post-deconsolidation of Corebridge, with a focus on underwriting excellence and disciplined capital management [32] - AIG Next initiative is expected to generate approximately $500 million in annual run rate savings by the end of 2025 [33] - The company is committed to reducing its ownership stake in Corebridge and exploring strategic alternatives for maximizing long-term value [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustained profitability and improve combined ratios [32] - The competitive environment is conducive for growth, particularly in excess and surplus lines, despite challenges in financial lines [54] - The company anticipates continued financial improvement driven by higher earned premiums and lower loss ratios [19] Other Important Information - The AIG Board approved an 11% increase in the quarterly common stock dividend to $0.40 per share [11] - The company returned over $2.4 billion to shareholders through stock repurchases and dividends [11] - AIG's total debt was reduced to $9.8 billion, a decrease of over $12 billion since the end of 2021 [29] Q&A Session Summary Question: Regarding inorganic opportunities and capital management expectations - Management confirmed commitment to the outlined capital management structure, indicating that while inorganic opportunities are not a priority, they are not ruled out if compelling [52] Question: Competitive environment relative to growth - Management noted that while the market is challenging, there are still opportunities for growth, particularly in specialty and casualty lines, despite some noise in premium written [54] Question: Timeline for Corebridge deconsolidation - Management expects to finalize the Corebridge deconsolidation by the end of the second quarter, subject to market conditions [58] Question: Share count target and Corebridge impact - The share count target of 550 million to 600 million includes expectations for future sell-downs of Corebridge shares [60] Question: Reinsurance strategy and capital usage - Management is comfortable taking more net risk but emphasizes a strategic approach to reinsurance to control volatility and improve underwriting results [66]