Summary
American International Group, Inc. (AIG) reported its financial results for the year ended December 31, 2018. The company continued to execute its strategy focused on profitable growth by enhancing underwriting capabilities, optimizing reinsurance structures, and investing in talent. AIG highlighted a diverse mix of businesses, including General Insurance and Life and Retirement segments, with operations spanning over 80 countries. The company experienced a net loss attributable to AIG of $6 million in 2018, a significant improvement from the $6,084 million net loss in 2017. This improvement was primarily driven by lower catastrophe losses and reduced unfavorable prior year loss reserve development in the General Insurance segment, along with lower net realized capital losses. However, lower investment returns and higher general operating expenses, partially due to acquisitions, impacted profitability. The company also completed several strategic acquisitions in 2018, including Validus and Glatfelter Insurance, to strengthen its offerings and market position.
Financial Highlights
41 data points| Revenue | $47.39B |
| SG&A Expenses | $9.30B |
| Operating Income | $36.00M |
| Interest Expense | $1.31B |
| Net Income | -$6.00M |
| EPS (Basic) | $-0.01 |
| EPS (Diluted) | $-0.01 |
| Shares Outstanding (Basic) | 898.41M |
| Shares Outstanding (Diluted) | 910.14M |
Key Highlights
- 1AIG reported a net loss attributable to AIG of $6 million for the year ended December 31, 2018, an improvement from a net loss of $6,084 million in 2017.
- 2General Insurance segment experienced reduced losses, driven by lower catastrophe losses and less unfavorable prior year loss reserve development.
- 3Life and Retirement segment's adjusted pre-tax income decreased due to lower investment returns and unfavorable actuarial assumption updates, partially offset by higher policy fees and other income.
- 4The company completed several strategic acquisitions in 2018, including Validus and Glatfelter Insurance, to enhance its General Insurance business.
- 5AIG's total revenues for 2018 were $47.4 billion, a decrease from $49.5 billion in 2017, largely due to lower net investment income and other income.
- 6The company continued to manage its capital through share repurchases and dividends, authorizing an additional $1.5 billion to its share repurchase program in February 2019.