AIG Q2 2023 Earnings Report
Key Takeaways
AIG reported a net income of $1.5 billion and adjusted after-tax income of $1.3 billion for Q2 2023. The company saw growth in General Insurance net premiums written and Life and Retirement adjusted pre-tax income. AIG also executed several strategic transactions, including the sale of Validus Re and a secondary offering of Corebridge Financial common stock.
Adjusted after-tax income per diluted common share was $1.75, the highest since 2007.
General Insurance net premiums written grew by 10%, with Commercial Lines up 14%.
Life and Retirement adjusted pre-tax income increased by 33%, driven by strong growth in base investment yield.
AIG repurchased $554 million of common stock and increased the quarterly common stock dividend by 12.5%.
AIG
AIG
Forward Guidance
AIG is focused on continuing its journey to become a top-performing company, delivering excellence, and creating sustainable long-term value for stakeholders. The company aims to simplify AIG, reduce volatility, and generate liquidity and capital efficiencies.
Positive Outlook
- Continued accident year underwriting margin improvement.
- Strong growth in net premiums written, driven by Commercial Lines.
- Excellent financial results in General Insurance.
- Very good results in Life & Retirement, with increased premiums and deposits.
- Continued execution of a balanced capital management strategy.
Challenges Ahead
- Challenging quarter for the industry.
- Higher catastrophe losses.
- Lower favorable prior year development.
- Decline in pre-tax income primarily driven by decrease in net realized gains.
- Higher interest crediting rates at Life and Retirement.