Summary
For the first quarter ended March 31, 2019, American International Group, Inc. (AIG) reported a net income attributable to AIG of $654 million, a decrease from $938 million in the prior year period. This decline was influenced by several factors, including higher net realized capital losses and a net loss reserve discount charge compared to a benefit in the prior year, which were not fully offset by improvements in accident year losses in General Insurance, higher investment returns, and lower general operating expenses. Total revenues increased by 6% to $12.46 billion, primarily driven by growth in premiums and net investment income. However, policyholder benefits and losses incurred also rose by 18%, impacting profitability. The company's adjusted pre-tax income, a non-GAAP measure that excludes certain items like net realized capital gains/losses, increased by 52% to $1.85 billion, reflecting stronger operational performance in its core segments, particularly General Insurance. Shareholders' equity saw an increase to $60.79 billion from $56.36 billion at the end of 2018, partly due to the issuance of Series A Preferred Stock. The company also maintained a strong liquidity position with $9.67 billion in total liquidity sources as of March 31, 2019.
Financial Highlights
36 data points| Revenue | $12.46B |
| SG&A Expenses | $2.05B |
| Operating Income | $654.00M |
| Interest Expense | $349.00M |
| Net Income | $654.00M |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 875.38M |
| Shares Outstanding (Diluted) | 877.51M |
Key Highlights
- 1Net income attributable to AIG decreased to $654 million in Q1 2019 from $938 million in Q1 2018.
- 2Total revenues increased by 6% to $12.46 billion.
- 3Adjusted pre-tax income (a non-GAAP measure) increased significantly by 52% to $1.85 billion, driven by improved underwriting results in General Insurance and higher investment income.
- 4General Insurance reported an underwriting income of $179 million in Q1 2019, a significant improvement from an underwriting loss of $251 million in Q1 2018.
- 5Life and Retirement segment's adjusted pre-tax income saw a modest increase of 4% to $924 million.
- 6Shareholders' equity increased to $60.79 billion from $56.36 billion.
- 7AIG issued $485 million in Series A Preferred Stock and $600 million in new debt.