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Sep 30, 2023
AIG Q3 2023 Earnings Report
AIG delivered exceptional results driven by continued improvement in underwriting profitability.
Key Takeaways
AIG reported a strong Q3 2023, with adjusted after-tax income per diluted share increasing by 92% year-over-year. The General Insurance combined ratio improved, and Life and Retirement also delivered solid results. AIG is streamlining its business model and simplifying its portfolio through strategic sales.
Net income per diluted share was $2.81, and adjusted after-tax income per diluted share was $1.61, an increase of 92% from the prior year quarter
General Insurance combined ratio was 90.5%, an improvement of 680 basis points from the prior year quarter, including 6.9 points of catastrophe losses and 2.7 points of favorable prior year development (PYD), net of reinsurance and prior year premiums
General Insurance accident year combined ratio, as adjusted was 86.3%, an improvement of 210 basis points from the prior year quarter, driven by the outstanding performance of the Commercial Lines AYCR of 81.7%
Life and Retirement adjusted pre-tax income was $971 million, up 24% from the prior year quarter, benefiting from continued growth in net investment spread
Forward Guidance
AIG is focused on underwriting excellence and portfolio optimization, which is expected to lead to continued improvement in financial results.
Positive Outlook
- Continued improvement in underwriting profitability
- Outstanding quarter in Commercial Lines business
- Relentless focus on strategic priorities
- Streamlining of business model
- Simplification of portfolio
Challenges Ahead
- Potential impact of adverse developments affecting economic conditions
- Occurrence of catastrophic events
- Disruptions in the availability or accessibility of information technology systems
- Inability to safeguard the confidentiality and integrity of data due to cyberattacks
- AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof
Historical Earnings Impact
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Avg. Return Before/After Earnings
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