10-QPeriod: Q2 FY2024

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 1, 2024For Securities:AIG

Summary

American International Group, Inc. (AIG) reported a net loss attributable to common shareholders of $3,977 million, or $(6.02) per diluted share, for the second quarter of 2024. This loss was primarily driven by a significant loss from discontinued operations, largely due to the deconsolidation of Corebridge, which resulted in a $4.7 billion loss on disposition. Despite the net loss, the General Insurance segment demonstrated resilience, with underwriting income of $430 million and a combined ratio of 92.5% for the quarter. This performance was supported by strong net investment income of $990 million and continued pricing discipline and risk selection in Commercial Lines, although offset by lower favorable prior year reserve development and higher catastrophe losses. The company continues to manage its portfolio and execute strategic initiatives, including the announced sale of its global individual personal travel insurance and assistance business.

Financial Highlights

33 data points
Beta

Revenue

$6.56B

Net Income

-$3.98B

-60.6% Net Margin

EPS (Diluted)

$-5.96

Total Assets

$167.89B

Cash & Equivalents

$1.38B

Free Cash Flow

$928.00M

Financial Statements
Beta
Revenue$6.56B
SG&A Expenses$1.61B
Interest Expense$125.00M
Net Income-$3.98B
EPS (Basic)$-6.02
EPS (Diluted)$-5.96
Shares Outstanding (Basic)661.09M
Shares Outstanding (Diluted)666.96M

Key Highlights

  • 1Net loss attributable to AIG common shareholders of $3,977 million for Q2 2024, largely impacted by a $4.7 billion loss on deconsolidation of Corebridge.
  • 2General Insurance segment reported underwriting income of $430 million and a combined ratio of 92.5% for Q2 2024.
  • 3Total revenues for Q2 2024 decreased by 12% to $6,560 million, primarily due to lower premiums written.
  • 4Net investment income increased by 18% to $990 million for Q2 2024, driven by Corebridge dividends, stock price changes, and higher interest rates on fixed maturity securities.
  • 5AIG announced the sale of its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million plus earn-out consideration.
  • 6The company repurchased approximately 22 million shares of AIG common stock for $1.7 billion in Q2 2024, and its Board authorized an additional $10.0 billion in share repurchases.
  • 7AIG Parent's liquidity sources include a $4.5 billion revolving credit facility, with $4.5 billion available as of June 30, 2024.

Frequently Asked Questions

The primary reason for the net loss attributable to AIG common shareholders of $3,977 million in the second quarter of 2024 was the deconsolidation of Corebridge, which resulted in a $4.7 billion loss on disposition. This significantly outweighed the positive performance in the General Insurance segment.

The General Insurance segment showed resilience, with underwriting income of $430 million and a combined ratio of 92.5% for the second quarter of 2024. This was supported by strong net investment income and disciplined underwriting in Commercial Lines, although it was impacted by lower favorable prior year reserve development and higher catastrophe losses.

AIG announced its definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million plus earn-out consideration. Additionally, AIG completed the deconsolidation of Corebridge as of June 9, 2024.

AIG's Board of Directors authorized a $10.0 billion share repurchase program, and the company repurchased approximately $1.7 billion of common stock during the second quarter. AIG also declared a cash dividend of $0.40 per share for the third quarter of 2024, indicating a continued focus on returning capital to shareholders.