American International Group (AIG) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with 28% adjusted EPS growth, robust underwriting income of $1.9B, and significant progress on strategic initiatives, including portfolio simplification and the deconsolidation of Corebridge Financial.

• General Insurance business realigned into three segments: North America Commercial, International Commercial, and Global Personal, enhancing transparency and focus.

• Maintained disciplined capital management, returning $8.1B to shareholders in 2024, including $6.6B in share repurchases and $1.0B in dividends, and reducing shares outstanding by 12%.

• Launched innovative initiatives, including a generative AI underwriting solution and Reinsurance Syndicate 2478 at Lloyd's in partnership with Blackstone.

• Q4 net income per diluted share rose to $1.43 from $0.12 year-over-year; full-year net loss per diluted share was $2.17, reflecting Corebridge deconsolidation accounting.

Financial highlights

• General Insurance net premiums written for Q4 were $6.1B, up 7% year-over-year; net premiums earned were $6B, up 6%.

• Adjusted after-tax income per share for Q4 grew 5% year-over-year to $1.30; full-year adjusted after-tax income was $3.3B, or $4.95 per diluted share, up 28% year-over-year.

• General Insurance net premiums written for the year were $23.9B, up 6%; net premiums earned were $23.5B, up 7%.

• Underwriting income for General Insurance was $1.9B, in line with prior year despite higher catastrophe losses.

• Book value per share at year-end: $70.16; adjusted book value per share: $73.79.

Outlook and guidance

• Management targets 10%+ core operating ROE for full-year 2025, including the $500M wildfire loss.

• Early 2025 forecast indicates strong organic growth, especially in Global Commercial, supported by restructured reinsurance.

• Expect to increase dividend in 2025, subject to board approval.

• Guidance to repurchase $10B of shares in 2024-2025, with $3.4B remaining for 2025.

• Maintains leverage guidance between 15-20%, with total debt to total capital at 17% at year-end.