10-QPeriod: Q1 FY2023

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 5, 2023For Securities:AIG

Summary

American International Group, Inc. (AIG) reported a net loss attributable to common shareholders of $23 million for the first quarter of 2023, a significant decrease from the $4.17 billion net income reported in the same period of the previous year. This shift was largely driven by substantial decreases in net realized gains, particularly from Fortitude Re related transactions and derivative activities. Total revenues declined by 26% year-over-year, primarily impacted by a sharp drop in net realized gains, while premiums written in the General Insurance segment saw a modest increase. Despite the overall reported net loss, the company highlighted improved underwriting income in its General Insurance segment, driven by positive rate changes and disciplined underwriting. Adjusted pre-tax income, a non-GAAP measure that excludes volatile items like net realized gains and losses, remained relatively stable at $1.64 billion compared to $1.72 billion in the prior year. This stability was supported by growth in net investment income and improved underwriting results in the General Insurance segment, which were partially offset by declines in the Life and Retirement segment, particularly in policy fees and advisory income. The company also announced a 12.5% increase in its common stock dividend, signaling confidence in its ongoing financial performance.

Financial Highlights

33 data points
Beta

Revenue

$6.71B

Net Income

$30.00M

0.4% Net Margin

EPS (Diluted)

$0.03

Total Assets

$536.63B

Cash & Equivalents

$1.92B

Free Cash Flow

$497.00M

Financial Statements
Beta
Revenue$6.71B
SG&A Expenses$1.98B
Interest Expense$307.00M
Net Income$30.00M
EPS (Basic)$0.03
EPS (Diluted)$0.03
Shares Outstanding (Basic)738.66M
Shares Outstanding (Diluted)744.10M

Key Highlights

  • 1Reported a net loss attributable to AIG common shareholders of $23 million for Q1 2023, a significant decrease from a net income of $4.17 billion in Q1 2022.
  • 2Total revenues decreased by 26% to $10.98 billion, primarily due to a substantial decline in net realized gains.
  • 3General Insurance segment's underwriting income increased by 13% to $502 million, driven by higher net premiums written and improved loss ratios.
  • 4Life and Retirement segment's adjusted pre-tax income decreased by 5% to $886 million, impacted by lower policy and advisory fee income and net investment income.
  • 5The company declared a cash dividend of $0.36 per share on AIG Common Stock, a 12.5% increase from the prior quarter.
  • 6Total assets increased to $536.6 billion as of March 31, 2023, from $522.2 billion as of December 31, 2022.
  • 7Adjusted book value per common share remained stable at $75.87 as of March 31, 2023, compared to $75.90 as of December 31, 2022.

Frequently Asked Questions

AIG reported a net loss attributable to common shareholders of $23 million for the first quarter of 2023.

The General Insurance segment showed improved performance, with underwriting income increasing by 13% to $502 million. This was driven by a 5% increase in net premiums written and a 1.0% decrease in the combined ratio to 91.9%, reflecting disciplined underwriting and positive rate changes.

Total revenues decreased by 26% year-over-year, primarily due to a substantial decline in net realized gains, which fell from $3.58 billion in Q1 2022 to a net loss of $1.91 billion in Q1 2023. This was significantly impacted by the Fortitude Re funds withheld embedded derivative results.

The Life and Retirement segment's adjusted pre-tax income decreased by 5% to $886 million. While fixed annuity sales benefited from higher interest rates, increased surrenders and lower separate account values impacted fee income. The segment continues to focus on product innovation and operational efficiency.