Summary
American International Group, Inc. (AIG) demonstrated a strong financial performance in its 2021 fiscal year, marked by significant improvements in its General Insurance segment and strategic progress in separating its Life and Retirement business. The company achieved a combined ratio of 95.8 in General Insurance, a notable improvement from 104.3 in the prior year, driven by disciplined underwriting and profitable growth initiatives. Simultaneously, AIG advanced its strategic imperative to separate its Life and Retirement business, including a 9.9% equity stake sale to Blackstone, aiming to establish two market-leading companies. Operationally, AIG continued to execute its multi-year AIG 200 program focused on modernizing its infrastructure and enhancing customer experiences. The company also returned substantial capital to shareholders and creditors, totaling $7.7 billion through dividends, share repurchases, and debt reduction. AIG's priorities for 2022 emphasize continued underwriting excellence, clear risk appetite, progress on the Life and Retirement separation, and a focus on profitable growth across its businesses.
Financial Highlights
39 data points| Revenue | $52.16B |
| SG&A Expenses | $8.73B |
| Operating Income | $9.36B |
| Interest Expense | $1.30B |
| Net Income | $10.37B |
| EPS (Basic) | $12.10 |
| EPS (Diluted) | $11.95 |
| Shares Outstanding (Basic) | 854.32M |
| Shares Outstanding (Diluted) | 864.88M |
Key Highlights
- 1Achieved a combined ratio of 95.8 in General Insurance, a significant improvement from 104.3 in 2020, indicating enhanced underwriting performance.
- 2Life and Retirement segment saw a 18% increase in premiums and deposits (excluding retail mutual funds) to $31.0 billion, driven by strong sales across product lines.
- 3Returned $7.7 billion to shareholders and creditors through dividends, share repurchases ($2.6 billion), and debt reduction ($4.0 billion).
- 4Completed the sale of a 9.9% equity stake in its Life and Retirement business (SAFG) to Blackstone for $2.2 billion, a key step in the separation strategy.
- 5The company announced and progressed on strategic initiatives including the separation of its Life and Retirement business and the AIG 200 program for operational modernization.
- 6Reported a 13% increase in Net Premiums Written for General Insurance, signaling top-line growth.
- 7Maintained balance sheet strength with $15.2 billion in AIG Parent liquidity sources and over $65 billion in shareholders' equity as of December 31, 2021.