10-QPeriod: Q3 FY2024

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 7, 2024For Securities:AIG

Summary

American International Group, Inc. (AIG) reported a net income attributable to common shareholders of $459 million, or $0.71 per diluted share, for the third quarter of 2024. This represents a significant decrease compared to the $2.02 billion, or $2.81 per diluted share, reported in the same period of the prior year. The decline is largely attributed to a substantial reduction in income from discontinued operations, primarily due to the deconsolidation of Corebridge in the prior year, which positively impacted that period's results. On a continuing operations basis, AIG's income from continuing operations was $481 million, or $0.74 per diluted share, down from $701 million, or $0.97 per diluted share, in Q3 2023. This decrease was driven by lower underwriting income in the General Insurance segment, particularly in North America, impacted by prior year loss reserve development and the sale of AIG Re. However, net investment income saw a notable increase of 14% to $973 million, driven by higher dividends from Corebridge, improved equity security valuations, and favorable interest rate environments impacting fair-valued securities. The company also continued its share repurchase program, repurchasing approximately $4.8 billion of common stock year-to-date.

Financial Highlights

32 data points
Beta

Revenue

$6.75B

Net Income

$459.00M

6.8% Net Margin

EPS (Diluted)

$0.71

Total Assets

$169.45B

Cash & Equivalents

$1.47B

Free Cash Flow

$1.70B

Financial Statements
Beta
Revenue$6.75B
SG&A Expenses$1.35B
Interest Expense$112.00M
Net Income$459.00M
EPS (Basic)$0.72
EPS (Diluted)$0.71
Shares Outstanding (Basic)641.62M
Shares Outstanding (Diluted)647.37M

Key Highlights

  • 1Net income attributable to common shareholders decreased to $459 million ($0.71/diluted share) from $2.02 billion ($2.81/diluted share) in the prior year quarter, largely due to a significant decrease in income from discontinued operations.
  • 2Income from continuing operations declined to $481 million ($0.74/diluted share) from $701 million ($0.97/diluted share) in the prior year quarter.
  • 3Net investment income increased by 14% to $973 million, driven by dividends from Corebridge, improved equity security valuations, and favorable impact from higher interest rates on fair-valued securities.
  • 4General Insurance underwriting income decreased by 28% in the quarter, primarily due to unfavorable prior year loss reserve development and the sale of AIG Re.
  • 5The company repurchased approximately 65 million shares of common stock for $4.8 billion during the first nine months of 2024, and announced a new $10 billion share repurchase authorization.
  • 6AIG's total assets decreased significantly to $169.5 billion from $539.3 billion at year-end 2023, primarily due to the deconsolidation of Corebridge and asset sales.
  • 7Total AIG shareholders' equity remained relatively stable at $45.0 billion, but book value per share increased to $71.46 from $65.14 at year-end 2023.

Frequently Asked Questions

The substantial decrease in net income attributable to common shareholders from $2.02 billion in Q3 2023 to $459 million in Q3 2024 was primarily driven by a significant reduction in income from discontinued operations. This was mainly due to the deconsolidation of Corebridge in Q2 2024, which had a positive impact on the prior year's results but no longer contributes to current income.

The General Insurance segment's underwriting income decreased by 28% in the quarter. This was primarily due to unfavorable prior year loss reserve development, particularly in U.S. Excess Casualty due to a large mass tort claim settlement, and the impact of the sale of AIG Re. While portfolio growth and favorable development in other areas partially offset these factors, the overall underwriting results were negatively impacted.

AIG has demonstrated a commitment to returning capital to shareholders. The company repurchased approximately $4.8 billion of common stock in the first nine months of 2024 and has an authorized $10 billion repurchase program. Additionally, the Board of Directors declared a cash dividend of $0.40 per share, payable in December 2024, indicating a continued focus on shareholder returns, though future actions will depend on market conditions and strategic priorities.

The deconsolidation of Corebridge in the second quarter of 2024 significantly impacted AIG's financial statements. It led to a substantial decrease in total assets and revenues compared to the prior year, as Corebridge's results are now reflected as discontinued operations. While this change reduced reported income in the current quarter due to the absence of Corebridge's prior year contribution, it also simplified AIG's operational structure and financial reporting.