10-KPeriod: FY2022

AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2022

Filed February 17, 2023For Securities:AIG

Summary

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 billion 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.

Financial Highlights

38 data points
Beta

Revenue

$30.00B

Net Income

$10.23B

34.1% Net Margin

EPS (Diluted)

$12.94

Total Assets

$522.23B

Cash & Equivalents

$1.48B

Free Cash Flow

$4.13B

Financial Statements
Beta
Revenue$30.00B
SG&A Expenses$6.16B
Interest Expense$603.00M
Net Income$10.23B
EPS (Basic)$13.10
EPS (Diluted)$12.94
Shares Outstanding (Basic)778.62M
Shares Outstanding (Diluted)787.94M

Key Highlights

  • 1Completed the largest U.S. IPO of 2022 with Corebridge Financial, Inc., retaining approximately 77.7% ownership.
  • 2Achieved the $1 billion exit run-rate savings goal for the "AIG 200" modernization program six months ahead of schedule.
  • 3General Insurance segment delivered strong underwriting results with a combined ratio of 91.9, a significant improvement from 95.8 in 2021.
  • 4Underwriting income in General Insurance increased by 94% year-over-year to $2.0 billion.
  • 5Reduced general borrowings by $9.4 billion.
  • 6Repurchased $5.1 billion of AIG's common stock and paid $1.0 billion in dividends.
  • 7Established a strategic partnership with BlackRock to manage a significant portion of AIG and Corebridge's investment portfolios.

Frequently Asked Questions

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.

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.

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.

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.