AIG reports exceptional second quarter 2024 results

Second quarter 2024 results reflect the successful Corebridge financial deconsolidation

General Insurance net premiums written (NPW) of $6.9 billion, a decrease of 8% on a reported basis, and an increase of 7% on a comparable basis*† led by North America Commercial with 10%† growth

Produced record Commercial Lines new business of $1.3 billion, an increase of 18% year-over-year coupled with continued strong retention globally

General Insurance combined ratio was 92.5%, an increase of 160 basis points year-over-year, or 10 basis points on a comparable basis

Accident year combined ratio, as adjusted (AYCR) was 87.6%, an improvement of 40 basis points year-over-year, or 170 basis points on a comparable basis

Net loss per diluted share was $5.96, compared to income of $2.03 in the prior year quarter, reflecting the accounting treatment of Corebridge deconsolidation

Adjusted after-tax income (AATI) per diluted share was $1.16, an increase of 9% from the prior year quarter and an increase of 38% on a comparable basis

Returned almost $2.0 billion to shareholders including $1.7 billion of stock repurchases and $261 million of dividends

Expanded capabilities in the non-admitted Ultra and High-Net-Worth market through Private Client Select’s strategic partnership with Ryan Specialty

Completed multi-year strategy to position AIG for the future with deconsolidation of Corebridge

American International Group, Inc. (NYSE: AIG) today reported financial results for the second quarter ended June 30, 2024. AIG Chairman & Chief Executive Officer Peter Zaffino said: “AIG had an outstanding second quarter and delivered terrific underwriting results across all of our businesses. The quarter marked one of the most notable accomplishments in AIG’s history with the deconsolidation of Corebridge, a process which began in 2020 and significantly advanced our multi-year strategy to position AIG for the future.

“The core fundamentals were exceptional in a quarter that included the complex accounting treatment of deconsolidation along with prior year divestitures. We are very pleased with the ongoing improvement in our underwriting income, record Commercial Lines new business of $1.3 billion, and very strong retention. Second quarter adjusted after-tax income per diluted share was $1.16, a 9% increase year-over-year, or 38% on a comparable basis.

“Against the backdrop of an increasingly uncertain global risk environment, AIG delivered sustainable earnings growth driven by our focus on underwriting excellence and continued expense discipline. The second quarter accident year combined ratio, as adjusted, of 87.6% improved 40 basis points year-over-year, or 170 basis points on a comparable basis with 180† basis points of improvement in Global Commercial Lines and 130 basis points in Global Personal Insurance. The catastrophe loss ratio was 5.7 points for the second quarter, or 3.8 points for the first six months of the year, improving 20 basis points year-over-year, an excellent performance in a challenging catastrophe environment.

“The repositioning of our underwriting portfolio has enabled us to deliver high-quality growth in both the admitted and non-admitted markets with multiple points of entry to deploy capital towards the most attractive risk adjusted returns around the world. This quarter, General Insurance net premiums written grew 7% on a comparable basis. North America Commercial Lines achieved 10%† growth with expansion across all major lines of business. Lexington Insurance, our Excess & Surplus platform, achieved over $1 billion of gross premiums written in the second quarter and had its strongest new business quarter since we strategically shifted the business in 2018. International Commercial Lines delivered 6% growth with expansion across all regions. The flight to quality across the industry is driving increased submission activity toward AIG as we deepen our distribution relationships, benefit from lead underwriting positions, continue to expand our product offerings and deliver increased value for clients.

“We also continue to execute our capital management strategy, while maintaining strong insurance subsidiary capital and parent liquidity. We executed nearly $5 billion of capital management actions in the first half of 2024, including $500 million of preferred stock redemption, $459 million of debt repayment, $3.3 billion of share repurchases and $511 million of dividend payments. We ended the quarter with an outstanding total debt to capital ratio of 18.1% along with parent liquidity of $5.3 billion and an exceptionally strong balance sheet.

“We enter the back half of 2024 with significant momentum focused on enhancing our leadership in the market. I want to thank our colleagues around the world for their hard work and dedication on behalf of our clients, distribution partners and stakeholders.”

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