Summary
American International Group, Inc. (AIG) reported a net income attributable to AIG common shareholders of $2.02 billion, or $2.81 per diluted share, for the third quarter of 2023. This represents a decrease from the $2.74 billion, or $3.55 per diluted share, reported in the same period of the prior year. The decline was primarily driven by lower net realized gains in both the General Insurance and Life and Retirement segments, particularly from Fortitude Re funds withheld embedded derivatives and derivative and hedge activities. However, the General Insurance segment saw an increase in underwriting income, supported by favorable prior year reserve development, lower catastrophe losses, and improved accident year loss ratios in North America, while International results were impacted by less favorable prior year development and higher catastrophe losses. For the first nine months of 2023, net income attributable to AIG common shareholders was $3.53 billion, a significant decrease from $9.65 billion in the prior year period. This was largely due to a substantial reduction in net realized gains, particularly from Fortitude Re related activities, and a decrease in net investment income driven by lower returns in alternative investments. Despite these headwinds, the General Insurance segment demonstrated robust growth in adjusted pre-tax income, driven by strong underwriting performance across both North America and International operations, including favorable prior year reserve development and improved accident year loss ratios. The Life and Retirement segment also showed resilience with a significant increase in adjusted pre-tax income, primarily due to higher net investment income and improved base portfolio spread income.
Financial Highlights
33 data points| Revenue | $7.27B |
| SG&A Expenses | $1.31B |
| Interest Expense | $138.00M |
| Net Income | $2.03B |
| EPS (Basic) | $2.83 |
| EPS (Diluted) | $2.81 |
| Shares Outstanding (Basic) | 712.60M |
| Shares Outstanding (Diluted) | 718.73M |
Key Highlights
- 1AIG reported a net income of $2.02 billion for Q3 2023, a decrease from $2.74 billion in Q3 2022.
- 2Diluted EPS for Q3 2023 was $2.81, down from $3.55 in Q3 2022.
- 3Total revenues decreased to $12.77 billion from $13.99 billion in the prior year quarter.
- 4Net investment income increased significantly by 33% to $3.56 billion, driven by higher base portfolio yields and the benefit of higher interest rates.
- 5General Insurance segment's underwriting income improved substantially to $611 million from $168 million in the prior year quarter, aided by favorable prior year reserve development and lower catastrophe losses.
- 6Life and Retirement segment's adjusted pre-tax income increased by 24% to $971 million, primarily driven by higher net investment spread income.
- 7AIG completed the sale of Validus Re and Laya Healthcare during the quarter, generating proceeds and advancing strategic simplification.