Summary
American International Group, Inc. (AIG) reported a strong first quarter in 2021, with net income attributable to common shareholders increasing significantly to $3.87 billion, or $4.41 per diluted share, compared to $1.74 billion, or $1.98 per diluted share, in the prior year period. This improvement was driven by higher investment portfolio returns, particularly in alternative investments and fair value option equity securities, benefiting from positive equity market performance. The General Insurance segment also contributed positively with improved underwriting results, characterized by lower accident year loss ratios, disciplined underwriting, and strong premium rate increases. Life and Retirement also showed strength with lower amortization expenses related to deferred acquisition costs and reserves, aided by favorable equity market performance, although partially offset by increased mortality due to COVID-19. The company continued to execute on its strategic priorities, including the potential separation of its Life and Retirement business and the sale of certain retail mutual funds within that segment. Liquidity remains strong, with significant cash and unencumbered assets available, and the company continued its share repurchase program and paid dividends. Overall, AIG demonstrated a robust financial performance in the first quarter of 2021, signaling a positive trend driven by market recovery and strategic execution.
Financial Highlights
35 data points| Revenue | $14.45B |
| SG&A Expenses | $2.09B |
| Operating Income | $3.87B |
| Interest Expense | $342.00M |
| Net Income | $3.88B |
| EPS (Basic) | $4.45 |
| EPS (Diluted) | $4.41 |
| Shares Outstanding (Basic) | 868.11M |
| Shares Outstanding (Diluted) | 876.27M |
Key Highlights
- 1Net income attributable to AIG common shareholders increased to $3.87 billion ($4.41/diluted share) from $1.74 billion ($1.98/diluted share) in the prior year quarter.
- 2Total revenues remained stable at $14.45 billion, with a significant increase in Net Investment Income (up 46%) driven by alternative investments and equity markets, offset by lower Net Realized Capital Gains (down 8%).
- 3General Insurance underwriting income improved significantly to $73 million from a loss of $87 million, with a combined ratio of 98.8%, down from 101.5%.
- 4Life and Retirement Adjusted Pre-Tax Income (APTI) increased by 57% to $941 million, driven by higher investment income and lower amortization expenses.
- 5Share repurchases continued, with approximately 8 million shares repurchased for $362 million in the first quarter.
- 6AIG declared a quarterly dividend of $0.32 per common share.
- 7The company continues to plan for the separation of its Life and Retirement business and has agreed to sell certain assets of its Retail Mutual Funds business.