01—Abstract
Summary
Summary of the 10-K filed February 17, 2023. Cited figures are marked; the original filing is the authoritative source.
American International Group, Inc. (AIG) reported a strong year in 2022, marked by significant strategic advancements and improved financial performance.
The company successfully executed its capital management plan, including the landmark initial public offering (IPO) of Corebridge Financial, Inc., which was the largest U.S. IPO of 2022. AIG also achieved its "AIG 200" cost savings goal ahead of schedule. The General Insurance segment demonstrated robust underwriting results, achieving a combined ratio of 91.9, a significant improvement from 95.8 in 2021, and consistently maintaining a sub-100 combined ratio throughout all quarters of 2022.
Financially, AIG highlighted strong shareholder equity and liquidity sources. The company reduced its general borrowings by $9.4 billiona and repurchased $5.1 billion of its common stock, alongside paying $1.0 billion in dividends. The strategic partnership with BlackRock Inc. to manage substantial assets for both AIG and Corebridge further underscores AIG's focus on optimizing its financial operations and positioning for future value creation.
02—Key points
Key Highlights
- Completed the largest U.S. IPO of 2022 with Corebridge Financial, Inc., retaining approximately 77.7% ownership.
- Achieved the $1 billion exit run-rate savings goal for the "AIG 200" modernization program six months ahead of schedule.
- General Insurance segment delivered strong underwriting results with a combined ratio of 91.9, a significant improvement from 95.8 in 2021.
- Underwriting income in General Insurance increased by 94% year-over-year to $2.0 billion.
- Reduced general borrowings by $9.4 billion.
- Repurchased $5.1 billion of AIG's common stock and paid $1.0 billion in dividends.
- Established a strategic partnership with BlackRock to manage a significant portion of AIG and Corebridge's investment portfolios.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 17, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $30.00B$52.16B | −42.5% |
| SG&A Expenses | $6.16B$8.73B | −29.4% |
| Interest Expense | $603.00M$1.30B | −53.8% |
| Net Income | $10.23B$10.37B | −1.4% |
| EPS (Basic) | $13.10$12.10 | +8.3% |
| EPS (Diluted) | $12.94$11.95 | +8.3% |
| Shares Outstanding (Basic) | 778.62M854.32M | −8.9% |
| Shares Outstanding (Diluted) | 787.94M864.88M | −8.9% |
05—Questions
Frequently Asked Questions
What was the significance of the Corebridge Financial, Inc. IPO for AIG?
The IPO of Corebridge Financial, Inc. (Corebridge), which is AIG's Life and Retirement business, was the largest U.S. IPO in 2022. It provided AIG with approximately $1.7 billion in gross proceeds, increased AIG's shareholder equity by $608 million, and created two standalone, market-leading companies. AIG retains a significant ownership stake of approximately 77.7% in Corebridge, allowing continued participation in its future growth.
How did the General Insurance segment perform in 2022?
The General Insurance segment demonstrated strong performance, with underwriting income increasing by 94% year-over-year to $2.0 billion. This was driven by a combined ratio of 91.9, a notable improvement from 95.8 in 2021, reflecting disciplined underwriting, improved retention, and effective new business development. The segment achieved a sub-100 combined ratio in every quarter of 2022.
What were AIG's capital management activities in 2022?
AIG actively managed its capital in 2022 by reducing general borrowings by $9.4 billion. The company also returned capital to shareholders through the repurchase of approximately $5.1 billion of AIG Common Stock and the payment of $1.0 billion in dividends. These actions reflect AIG's commitment to enhancing shareholder value and optimizing its capital structure.
How is AIG managing its investment portfolio and what role does BlackRock play?
AIG is strategically managing its investment portfolio through a partnership with BlackRock, Inc. Under this agreement, BlackRock manages a substantial portion of AIG's and Corebridge's investments, totaling approximately $162 billion as of December 31, 2022. This partnership aims to optimize asset management for AIG and Corebridge, leveraging BlackRock's expertise to enhance investment returns and efficiency.
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