AIG sees surge in attributable net income

AIG sees surge in attributable net income | Insurance Business America

Insurance News

AIG sees surge in attributable net income

Quarterly cash dividend 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)

$9.2 billion

$12 billion

Underwriting income – GI

$596 million

$502 million

Adjusted pre-tax income – GI

$1.4 billion

$1.2 billion

Adjusted pre-tax income – life and retirement

$991 million

$886 million

Adjusted pre-tax income – group

$1.9 billion

$1.6 billion

Net investment income

$3.9 billion

$3.5 billion

Net income attributable to AIG common shareholders

$1.2 billion

$23 million

According to the insurance group, the surge in its attributable net income was mainly due to net realized gains on Fortitude Re funds withheld embedded derivative, versus net realized 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 $3 billion of capital management actions, including returning $2.4 billion to AIG shareholders through $1.7 billion of common stock repurchases, $250 million of common and preferred dividends, and redeeming $500 million of preferred stock, as well as retiring $459 million in maturing debt.”

The AIG board, meanwhile, approved an 11% increase in the company’s quarterly common stock dividend to $0.40 per share. The cash dividend is payable on June 28.

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