Summary
American International Group, Inc. (AIG) in 2015 operated as a diversified global insurance organization with two main segments: Commercial Insurance and Consumer Insurance. The company generated total revenues of $58.3 billion, with a net income attributable to AIG of $2.2 billion. A significant strategic focus for 2016 was announced in January 2016, aiming to create a leaner, more profitable, and focused insurer by reorganizing into modular business units and introducing a new Legacy Portfolio to maximize value from non-strategic assets. Key priorities for 2016 included improving Return on Equity (ROE), reducing general operating expenses, improving the Commercial Insurance Property Casualty accident year loss ratio, and returning excess capital to shareholders. Financially, 2015 saw a decrease in pre-tax operating income for both Commercial Insurance and Consumer Insurance segments compared to 2014. Commercial Insurance was impacted by higher underwriting losses in Property Casualty due to adverse prior year loss reserve development and lower net investment income. Consumer Insurance experienced lower net investment income, less favorable actuarial assumption updates, less favorable mortality in Life, and an underwriting loss in Personal Insurance. The company continued to focus on capital management, with $10.7 billion repurchased in AIG Common Stock during 2015 and an increase in its share repurchase authorization.
Financial Highlights
38 data points| Revenue | $58.33B |
| SG&A Expenses | $12.69B |
| Operating Income | $2.20B |
| Interest Expense | $1.28B |
| Net Income | $2.20B |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.65 |
| Shares Outstanding (Basic) | 1.30B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1AIG reported total revenues of $58.3 billion for the year ended December 31, 2015.
- 2Net income attributable to AIG was $2.2 billion, a significant decrease from $7.5 billion in 2014, impacted by adverse prior year loss reserve development in Commercial Property Casualty and lower net investment income.
- 3Commercial Insurance pre-tax operating income decreased substantially due to a $3.5 billion adverse prior year loss reserve development in Property Casualty.
- 4Consumer Insurance pre-tax operating income also decreased, primarily due to lower net investment income and less favorable actuarial assumptions.
- 5The company repurchased approximately $10.7 billion of AIG Common Stock in 2015 and announced an additional $5.0 billion repurchase authorization in February 2016.
- 6AIG announced a strategic reorganization in January 2016 to create a leaner, more focused insurer, including the introduction of a Legacy Portfolio.
- 7The company's capital and surplus for its insurance subsidiaries remained strong, exceeding minimum regulatory requirements.