American International Group (AIG) Q4 2023 earnings summary

Executive summary

• FY23 adjusted after-tax income rose 22% to $4.9B and adjusted diluted EPS increased 33% to a record $6.79; reported net income was $3.6B, primarily reflecting Fortitude Re-related realized losses.

• General Insurance underwriting strengthened, while Life and Retirement adjusted pre-tax income rose 15% to $3.8B.

Financial highlights

• FY23 net income attributable to common shareholders was $3.6B versus $10.2B; adjusted after-tax income was $4.9B versus $4.0B.

• Q4 net income was $86M versus $545M; adjusted after-tax income rose to $1.3B from $1.1B, and adjusted EPS increased 29% to $1.79.

• Q4 total net investment income rose 21% YoY to $3.9B; APTI-basis investment income increased $499M to $3.5B.

• FY23 General Insurance adjusted pre-tax income rose 21% to $5.4B; Life and Retirement adjusted pre-tax income rose 15% to $3.8B.

• FY23 adjusted after-tax income growth reflected higher General Insurance underwriting and investment income; Corebridge earnings included in the measure declined 20% as ownership fell to 52.2%.

Outlook and guidance

• Targeting 10%+ adjusted return on common equity, supported by underwriting improvement, expense savings, share repurchases and higher reinvestment income.

• Expected Corebridge deconsolidation in 2024 is intended to provide greater visibility into operations, capital structure and business performance.

• Priorities include underwriting discipline, operational execution, claims service and agility; capital plans target leverage in the low 20s while balancing repurchases, debt reduction and potential dividend increases.