01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
American International Group, Inc. (AIG) demonstrated a resilient financial performance in 2024, marked by strong underwriting results and strategic portfolio management.
The company achieved a combined ratio of 91.8 and an adjusted accident year combined ratio of 88.2, contributing to $1.9 billiona in underwriting income and over $7 billion cumulatively from 2021-2024. Net premiums written reached $23.9 billion, supported by growth, retention, and disciplined pricing. AIG made significant progress in completing multi-year strategic initiatives, notably the deconsolidation of Corebridge Financial, Inc., reducing AIG's ownership to 22.7% for $6.0 billion in proceeds.
The company also divested its global individual personal travel insurance and assistance business for $600 millionb, further enhancing financial flexibility. AIG continued its balanced capital management by reducing general borrowings by $1.6 billion, lowering its debt-to-capital ratio to 17.0%, repurchasing $6.6 billion of its own stock, and increasing common stock dividends. These actions underscore AIG's focus on profitable growth, operational efficiency, and shareholder returns while maintaining a strong balance sheet.
02—Key points
Key Highlights
- Achieved a combined ratio of 91.8 and an adjusted accident year combined ratio of 88.2 in 2024, reflecting strong underwriting performance.
- Generated $1.9 billion in underwriting income in 2024, contributing to over $7 billion in cumulative underwriting income from 2021-2024.
- Completed the deconsolidation of Corebridge Financial, Inc., reducing ownership to 22.7% and realizing $6.0 billion in aggregate gross proceeds.
- Divested the global individual personal travel insurance and assistance business for $600 million, enhancing financial flexibility.
- Reduced general borrowings by $1.6 billion, leading to a debt-to-capital ratio of 17.0%.
- Repurchased $6.6 billion of AIG common stock, reducing outstanding shares by 12%.
- Increased net investment income by 23% year-over-year, driven by higher yields and strategic asset allocation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $27.25B$27.94B | −2.5% |
| SG&A Expenses | $5.53B$5.40B | +2.4% |
| Interest Expense | $462.00M$516.00M | −10.5% |
| Net Income | -$1.40B$3.64B | −138.5% |
| EPS (Basic) | $-2.19$5.02 | −143.6% |
| EPS (Diluted) | $-2.17$4.98 | −143.6% |
| Shares Outstanding (Basic) | 651.45M719.51M | −9.5% |
| Shares Outstanding (Diluted) | 657.28M725.23M | −9.4% |
05—Questions
Frequently Asked Questions
What was AIG's underwriting performance in 2024?
AIG reported strong underwriting performance in 2024 with a combined ratio of 91.8 and an adjusted accident year combined ratio of 88.2. This resulted in $1.9 billion of underwriting income for the year.
What significant strategic actions did AIG complete in 2024?
AIG completed the deconsolidation of Corebridge Financial, Inc., reducing its ownership stake and realizing substantial proceeds. Additionally, the company divested its global individual personal travel insurance and assistance business, which further strengthened its financial position and refined its business portfolio.
How did AIG manage its capital and return value to shareholders in 2024?
AIG actively managed its capital by reducing general borrowings by $1.6 billion and repurchasing $6.6 billion of its common stock. The company also demonstrated a commitment to shareholder returns by increasing its common stock dividend by a double-digit percentage for the second consecutive year.
06—Continue