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Dec 31, 2019
AIG Q4 2019 Earnings Report
AIG reported net income attributable to AIG common shareholders of $922 million, or $1.03 per diluted common share, for the fourth quarter of 2019.
Key Takeaways
AIG's Q4 2019 results showed significant improvement compared to the prior-year quarter, driven by favorable underwriting in General Insurance, reduced catastrophe losses, and increased net investment income. Net income attributable to AIG common shareholders was $922 million, or $1.03 per diluted common share.
Net income attributable to AIG common shareholders was $922 million, or $1.03 per diluted common share.
Adjusted after-tax income attributable to AIG common shareholders was $919 million, or $1.03 per diluted common share.
General Insurance underwriting income was $12 million with a combined ratio of 99.8.
Life and Retirement adjusted pre-tax income increased 35% to $839 million compared to the prior-year quarter.
AIG
AIG
Forward Guidance
AIG is focused on executing its strategy to become a leading insurance franchise and top-performing company, aiming for a 10% Adjusted ROCE by the end of 2021.
Positive Outlook
- Continued work as part of the turnaround of General Insurance.
- AIG 200 will be a top priority, focusing on long-term strategic positioning and operational excellence.
- Confidence in the path AIG is on and excitement about the future.
- Entered 2020 with great momentum.
- Agreement to sell a majority stake in Fortitude Re, scheduled to close mid-year, subject to regulatory approvals.
Challenges Ahead
- Continued headwinds from low interest rates.
- Tightening credit spreads.
- Slightly higher general operating expenses from investments in the business.
- Lower Fixed Annuity sales.
- Slightly higher group surrenders.