AIG sees spike in attributable net income
AIG sees spike in attributable net income | Insurance Business New Zealand
Insurance News
AIG sees spike in attributable net income
Cash dividend for first quarter up 11%
Insurance News
By
Terry Gangcuangco
American International Group (AIG) has published its earnings report for the first quarter of 2024 – a period in which the insurer saw a massive climb in net income attributable to common shareholders.
Here’s how AIG performed in the three months ended March 31:
Metric
Q1 2024
Q1 2023
Gross written premium – general insurance (GI)
US$9.2 billion
US$12 billion
Underwriting income – GI
US$596 million
US$502 million
Adjusted pre-tax income – GI
US$1.4 billion
US$1.2 billion
Adjusted pre-tax income – life and retirement
US$991 million
US$886 million
Adjusted pre-tax income – group
US$1.9 billion
US$1.6 billion
Net investment income
US$3.9 billion
US$3.5 billion
Net income attributable to AIG common shareholders
US$1.2 billion
US$23 million
According to the insurance group, the surge in its attributable net income was mainly due to net realised gains on Fortitude Re funds withheld embedded derivative, versus net realised losses in the same quarter in 2023.
Commenting on the numbers, AIG chair and chief executive Peter Zaffino (pictured) said: “AIG began 2024 with very strong momentum in delivering on our strategic and operational progress while achieving exceptional financial results, reflecting the foundational capabilities we have cultivated over the last several years.
“In addition to outstanding profitability, this quarter was highlighted by the significant capital management actions we completed, placing AIG in a position of strength ahead of Corebridge Financial’s deconsolidation from AIG.”
The CEO added: “While reducing our ownership stake in Corebridge remains a top priority in 2024, we continue to diligently execute on our capital management strategy. In the first quarter, we executed nearly US$3 billion of capital management actions, including returning US$2.4 billion to AIG shareholders through US$1.7 billion of common stock repurchases, US$250 million of common and preferred dividends, and redeeming US$500 million of preferred stock, as well as retiring US$459 million in maturing debt.”
The AIG board, meanwhile, approved an 11% increase in the company’s quarterly common stock dividend to US$0.40 per share. The cash dividend is payable on June 28.
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