10-QPeriod: Q1 FY2024

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 2, 2024For Securities:AIG

Summary

American International Group, Inc. (AIG) reported a significant turnaround in its financial performance for the first quarter of 2024, demonstrating a net income of $1.216 billion attributable to AIG common shareholders, a substantial increase from the $30 million reported in the same period of the previous year. This improvement was driven by a strong recovery in net investment income, which rose by 11% to $3.9 billion, and a considerable reduction in net realized losses, which decreased by 78% to $424 million. The General Insurance segment saw its adjusted pre-tax income grow by 9% to $1.36 billion, supported by improved underwriting results in its International operations and a lower combined ratio. The Life and Retirement segment also showed robust growth, with adjusted pre-tax income increasing by 12% to $991 million, benefiting from higher net investment income and increased annuity sales. The company also announced a 11% increase in its quarterly common stock dividend, signaling confidence in its ongoing performance and financial strength.

Financial Highlights

31 data points
Beta

Revenue

$6.76B

Net Income

$1.22B

18.0% Net Margin

EPS (Diluted)

$1.74

Total Assets

$544.12B

Cash & Equivalents

$1.41B

Free Cash Flow

$521.00M

Financial Statements
Beta
Revenue$6.76B
SG&A Expenses$1.24B
Interest Expense$116.00M
Net Income$1.22B
EPS (Basic)$1.75
EPS (Diluted)$1.74
Shares Outstanding (Basic)682.58M
Shares Outstanding (Diluted)687.96M

Key Highlights

  • 1Net income attributable to AIG common shareholders surged to $1.216 billion, a significant increase from $30 million in the prior year quarter.
  • 2Total net investment income increased by 11% to $3.9 billion, driven by higher returns on fixed maturity securities and loans.
  • 3General Insurance segment's adjusted pre-tax income grew by 9% to $1.36 billion, with strong underwriting results in International operations.
  • 4Life and Retirement segment's adjusted pre-tax income increased by 12% to $991 million, boosted by higher net investment income and annuity sales.
  • 5The company announced a quarterly cash dividend of $0.40 per share, an 11% increase from the prior quarter, reflecting enhanced financial stability.
  • 6Share repurchases continued, with approximately $1.7 billion of AIG Common Stock repurchased during the quarter.
  • 7Total revenues increased by 15% to $12.58 billion, reflecting broad-based growth across segments.

Frequently Asked Questions

AIG reported a net income of $1.216 billion attributable to AIG common shareholders for the first quarter of 2024, a substantial increase compared to $30 million in the same period of 2023.

The General Insurance segment reported an adjusted pre-tax income of $1.358 billion, an increase of 9% compared to the prior year quarter. This improvement was driven by strong underwriting income in its International operations and a lower combined ratio of 88.7%.

Net investment income increased by 11% to $3.9 billion, primarily due to higher income from available-for-sale fixed maturity securities and an increase in interest income from mortgages and other loans. The rising interest rate environment contributed positively to the yields on new investments.

Yes, AIG returned capital through dividends and share repurchases. The company declared a quarterly cash dividend of $0.40 per share, an 11% increase, and repurchased approximately $1.7 billion of AIG Common Stock during the quarter.