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Jun 30, 2022
AIG Q2 2022 Earnings Report
AIG had an excellent quarter with General Insurance reporting outstanding results and Life and Retirement delivering a solid performance amidst market headwinds.
Key Takeaways
AIG reported strong Q2 2022 results, driven by outstanding performance in General Insurance and solid results in Life and Retirement, despite market headwinds. The company deferred the Corebridge Financial IPO due to market volatility but made progress on separation initiatives. AIG accelerated capital management priorities, including debt redemption and share repurchases.
General Insurance reported outstanding results, driven by underwriting excellence.
Life and Retirement delivered a solid performance despite significant market headwinds.
The Corebridge Financial IPO was deferred due to equity market volatility.
Capital management priorities were accelerated, including debt redemption and share repurchases.
AIG
AIG
Forward Guidance
AIG is focused on driving excellence across the company to create long-term value for all stakeholders.
Positive Outlook
- AIG continues to drive excellence across the company.
- The company is focused on creating long-term value for all stakeholders.
- Life and Retirement is starting to see a positive impact in its base portfolio net investment income from higher interest rates and credit spreads.
- AIG and AIG’s Life and Retirement business will gain access to BlackRock’s world-class asset management capabilities as well as its investment management technology, Aladdin.
- General Insurance’s culture of underwriting excellence continues to be evidenced in our financial results.
Challenges Ahead
- Due to the high degree of equity market volatility in May and June, we decided to defer the launch of the Corebridge Financial initial public offering (IPO).
- Lower alternative investment income
- Lower call and tender income
- Lower returns from fair value option equity securities.
- Book value per common share was $58.16 as of June 30, 2022, a decrease of 16% from March 31, 2022 and 27% from December 31, 2021, reflecting a reduction in accumulated other comprehensive income (AOCI) as a result of higher market interest rates.