10-QPeriod: Q3 FY2014

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 3, 2014For Securities:AIG

Summary

American International Group, Inc. (AIG) reported solid financial performance for the quarter and nine months ended September 30, 2014, demonstrating a recovery and focus on core insurance businesses. The company's total revenues increased to $16.65 billion for the quarter and $48.87 billion year-to-date, driven by growth in net investment income and policy fees, although aircraft leasing revenue decreased due to the sale of ILFC. Income from continuing operations was $2.20 billion for the quarter and $6.86 billion year-to-date, with net income attributable to AIG of $2.19 billion and $6.87 billion, respectively. The company also made significant progress on its capital management initiatives, including debt reduction and substantial share repurchases, signaling a commitment to returning value to shareholders. Key highlights include a strong improvement in AIG Property Casualty's pre-tax operating income, driven by better loss experience and higher net investment income, and a notable increase in AIG Life and Retirement's pre-tax operating income due to growth in assets under management and higher alternative investment income. The company's strategic focus on customer value, disciplined underwriting, and operational efficiencies is reflected in these results, positioning AIG for continued growth and profitability.

Financial Highlights

31 data points
Beta

Revenue

$16.70B

Net Income

$2.19B

13.1% Net Margin

EPS (Diluted)

$1.52

Total Assets

$527.19B

Cash & Equivalents

$1.93B

Free Cash Flow

$2.72B

Financial Statements
Beta
Revenue$16.70B
SG&A Expenses$3.15B
Operating Income$6.89B
Interest Expense$430.00M
Net Income$2.19B
EPS (Basic)$1.54
EPS (Diluted)$1.52
Shares Outstanding (Basic)1.42B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1AIG reported a net income attributable to AIG of $2.19 billion for the third quarter of 2014 and $6.87 billion for the nine months ended September 30, 2014.
  • 2Total revenues for the quarter increased to $16.65 billion, driven by higher net investment income and policy fees.
  • 3AIG Property Casualty's pre-tax operating income improved year-over-year due to better loss experience and higher net investment income.
  • 4AIG Life and Retirement's pre-tax operating income increased due to growth in assets under management and higher alternative investment income.
  • 5The company reduced its debt significantly, repurchasing $3.4 billion of common stock in the first nine months of 2014 and increasing its share repurchase authorization.
  • 6The sale of ILFC for approximately $7.6 billion was completed, generating net cash proceeds and contributing to gains.
  • 7The company continued to manage its investments for yield enhancement while maintaining a focus on credit quality and liquidity.

Frequently Asked Questions

AIG reported a net income attributable to AIG of $2.19 billion for the third quarter ended September 30, 2014.

AIG Property Casualty's pre-tax operating income increased year-over-year due to improved loss experience, higher net investment income, and a lower Commercial Insurance current accident year loss ratio, partially offset by higher net adverse prior year loss reserve development and catastrophe losses.

AIG Life and Retirement's pre-tax operating income increased due to higher fee income from growth in assets under management and higher alternative investment income, along with a positive adjustment related to actuarial assumptions.

AIG reduced its debt by $10.4 billion, paid cash dividends on common stock, and repurchased approximately 60 million shares of AIG Common Stock for approximately $3.4 billion. The company also completed the sale of ILFC and received net cash proceeds of $2.4 billion.