American International Group (AIG) Q3 2024 earnings summary

Executive summary

• Adjusted after-tax income per diluted share was $1.23, up 18% year-over-year and 31% on a comparable basis, reflecting strong core earnings and disciplined capital management.

• Net income attributable to common shareholders was $459 million for Q3 2024, down from $2.0 billion in Q3 2023, mainly due to the deconsolidation of Corebridge and lower underwriting income.

• North America Commercial posted 11% net premiums written growth, driven by robust new business and high retention.

• Realized initial cost savings from the AIG Next program, improving general operating expense ratio.

• Returned $1.8 billion to shareholders in Q3 via $1.5 billion in stock repurchases and $254 million in dividends.

Financial highlights

• General Insurance gross premiums written were $8.6 billion (+3% YoY); net premiums written $6.4 billion (+6% YoY comparable); net premiums earned $5.9 billion (+7% YoY).

• Net investment income (adjusted pre-tax) was $973 million, up 14% year-over-year, driven by higher yields and Corebridge dividends.

• Book value per share at $71.46 (+4% from Q2); adjusted book value per share at $73.90.

• Combined ratio for General Insurance was 92.6%; accident year combined ratio (as adjusted) was 88.3%.

• Adjusted return on equity: 6.8%; core operating ROE: 9.2%.

Outlook and guidance

• Management expects to achieve 10% core operating ROE for full year 2025, with continued focus on underwriting discipline, expense management, and capital allocation.

• Fourth quarter accident-year loss ratio (as adjusted) expected to align with first nine months of 2024.

• Sale of global personal travel insurance business to Zurich expected to close by year-end 2024; sale of 20% stake in Corebridge to Nippon Life expected to close in Q1 2025.