Summary
American International Group, Inc. (AIG) reported its second quarter 2017 financial results, showing a net income attributable to AIG of $1.13 billion, or $1.19 per diluted share. This represents a decrease from the prior year's quarter, primarily due to net realized capital losses in the current period compared to gains in the prior year, along with a loss on the sale of divested businesses and lower net investment income. The company also saw a decrease in total revenues, driven by lower premiums and net realized capital losses. Operationally, Pre-Tax Operating Income (PTOI) increased to $2.13 billion, an improvement driven by lower general operating and other expenses, stronger performance in the Consumer Insurance segment (particularly Personal Insurance and Individual Retirement), and higher fair value gains in the Legacy Portfolio. Commercial Insurance PTOI saw a slight decline due to higher property losses and an increase in loss estimates from the prior year. The company continues to execute on its expense reduction initiatives, resulting in lower general operating expenses across segments. Capital management remained a focus, with AIG returning $6.0 billion to shareholders through share repurchases in the six months ended June 30, 2017, alongside dividends paid. The company ended the quarter with total assets of $499.8 billion and total liabilities of $425.4 billion, resulting in AIG shareholders' equity of $73.7 billion.
Financial Highlights
36 data points| Revenue | $12.50B |
| SG&A Expenses | $2.18B |
| Operating Income | $2.31B |
| Interest Expense | $292.00M |
| Net Income | $1.13B |
| EPS (Basic) | $1.22 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 925.75M |
| Shares Outstanding (Diluted) | 948.25M |
Key Highlights
- 1Net income attributable to AIG was $1.13 billion ($1.19 per diluted share) for the second quarter of 2017, a decrease from $1.91 billion ($1.68 per diluted share) in the prior year's quarter.
- 2Pre-Tax Operating Income (PTOI) increased to $2.13 billion for the quarter, up from $1.92 billion in the prior year's quarter, driven by expense reductions and improved Consumer Insurance results.
- 3Total revenues decreased by 15% to $12.50 billion for the quarter, primarily due to lower premiums and net realized capital losses, compared to gains in the prior year.
- 4Commercial Insurance PTOI decreased by 24% to $716 million, impacted by higher property losses and increased loss estimates.
- 5Consumer Insurance PTOI increased by 33% to $1.26 billion, benefiting from lower expenses, improved investment spreads, and favorable underwriting results.
- 6AIG returned $6.0 billion to shareholders through share repurchases and paid $0.32 per share in dividends during the first six months of 2017.
- 7The company ended the quarter with total assets of $499.8 billion and AIG shareholders' equity of $73.7 billion.