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Jun 30, 2024

AIG Q2 2024 Earnings Report

AIG reported exceptional results, marked by the successful Corebridge Financial deconsolidation.

Key Takeaways

AIG reported an outstanding second quarter with terrific underwriting results. The deconsolidation of Corebridge was completed. Adjusted after-tax income per diluted share was $1.16, a 9% increase year-over-year, or 38% on a comparable basis.

General Insurance net premiums written (NPW) of $6.9 billion, an increase of 7% on a comparable basis, led by North America Commercial with 10% growth.

Produced record Commercial Lines new business of $1.3 billion, an increase of 18% year-over-year coupled with continued strong retention globally.

General Insurance combined ratio was 92.5%, an increase of 160 basis points year-over-year, or 10 basis points on a comparable basis.

Accident year combined ratio, as adjusted was 87.6%, an improvement of 40 basis points year-over-year, or 170 basis points on a comparable basis.

Total Revenue
$990M
Previous year: $13.2B
-92.5%
EPS
$1.16
Previous year: $1.75
-33.7%
Underwriting Income
$430M
Previous year: $594M
-27.6%
Combined Ratio
92.5%
Previous year: 90.9%
+1.8%
Accident Year Combined Ratio
87.6%
Previous year: 88%
-0.5%
Gross Profit
$4.95B
Previous year: $13.3B
-62.9%
Cash and Equivalents
$5.3B
Previous year: $1.56B
+239.7%
Total Assets
$168B
Previous year: $537B
-68.7%

AIG

AIG

Forward Guidance

AIG enters the back half of 2024 with significant momentum focused on enhancing its leadership in the market.

Positive Outlook

  • Sustainable earnings growth driven by focus on underwriting excellence.
  • Continued expense discipline.
  • Repositioning of underwriting portfolio enables high-quality growth.
  • Deepening distribution relationships.
  • Benefit from lead underwriting positions.

Challenges Ahead

  • Increasingly uncertain global risk environment.
  • Complex accounting treatment of deconsolidation.
  • Prior year divestitures.
  • Increase in catastrophe losses year-over-year.
  • Lower underwriting income in General Insurance due to business divestitures.