Fourth Quarter 2024:
- General Insurance net premiums written (NPW) of $6.1
billion, an increase of 6% year-over-year on a reported basis, or
7% on a comparable basis*†
- Combined ratio was 92.5%; Accident year combined ratio, as
adjusted* (AYCR) was 88.6%
- Net income per diluted share was $1.43, compared to $0.12 in
the prior year quarter, which included Corebridge Financial, Inc.’s
(Corebridge) consolidated results
- Adjusted after-tax income* (AATI) per diluted share was
$1.30, an increase of 2% year-over-year, or 5% on a comparable
basis†
- Returned approximately $2.1 billion of capital to
shareholders in the fourth quarter through $1.8 billion of share
repurchases and $244 million of dividends
Full Year 2024:
- Strong General Insurance NPW of $23.9 billion, a decrease of
11% year-over-year on a reported basis as a result of divestitures,
or an increase of 6% on a comparable basis†
- Global Commercial NPW of $16.8 billion, a decrease of 14%
year-over-year, or an increase of 7% on a comparable basis†, led by
excellent growth in North America Commercial of 9%†
- Exceptional new business written in Global Commercial of
$4.5 billion, growing 9% year-over-year
- Combined ratio was 91.8%; AYCR was 88.2%
- Net loss per diluted share was $2.17, compared to net income
of $4.98 in the prior year, with the loss reflecting the accounting
impact of the Corebridge deconsolidation
- AATI per diluted share was $4.95, an increase of 12%
year-over-year, or 28% on a comparable basis†
- Executed $9.7 billion of capital management actions,
including $6.6 billion of share repurchases, $1.0 billion of
dividends, $1.6 billion of net debt reduction and $500 million of
preferred stock redemption
American International Group, Inc. (NYSE: AIG) today reported
financial results for the fourth quarter and full year ended
December 31, 2024.
“2024 was an outstanding year of accomplishments for AIG in
which we successfully executed multiple complex strategic and
operational priorities, delivered outstanding financial results and
created exceptional value for our clients and stakeholders. We
strengthened the company’s capital structure, improved our
financial performance, and achieved a historic milestone with the
deconsolidation of Corebridge Financial, which enabled us to
organize our business into three distinct operating segments,” said
Peter Zaffino, AIG Chairman & Chief Executive Officer.
“Against the backdrop of an extremely challenging natural
catastrophe environment, I want to acknowledge the devastating
impact of the recent wildfires in California on the families,
communities and businesses affected. Our local teams remain on the
ground, providing critical expertise and support to our customers
and partners – this is our Purpose. This tragic event serves as a
stark reminder of the escalating risks and evolving complicated
environment that we operate in. Though it is still too early to
determine the full impact of the California wildfires, we estimate
the net loss for AIG to be approximately $500 million, before
reinstatement premiums.
“As a result of our steadfast commitment to prudently managing
risk and volatility, we ended 2024 with excellent fourth quarter
results, generating strong growth across our businesses with
outstanding underwriting profitability.
“For the full year, adjusted after-tax income per diluted share
was $4.95, a 12% increase year-over-year, or 28% on a comparable
basis†. Underwriting income was nearly $2 billion, marking another
year of exceptional underwriting results. This was reflected in a
combined ratio that was below 92% for a third consecutive year and
an accident year combined ratio, as adjusted that was again below
89%. Full year 2024 net premiums written increased 6% on a
comparable basis† from the prior year. We continued to see momentum
in Global Commercial, with net premiums written up 7%†, supported
by very strong retention of 88% and record high new business of
$4.5 billion.
“We made significant progress on our capital management strategy
in 2024, reducing our debt by $1.6 billion while also returning
$8.1 billion of capital to shareholders, including $6.6 billion of
share repurchases, $1.0 billion of dividends and $500 million
preferred stock redemption. We ended the year with a debt to total
capital ratio of 17.0% and parent liquidity of $7.7 billion,
supported by the $3.8 billion of proceeds from the sale of a 21.6%
ownership stake in Corebridge to Nippon Life and other transactions
that have reduced our ownership to 22.7%.
“We successfully launched our reinsurance Syndicate 2478 at
Lloyd's through a multi-year strategic relationship with
Blackstone. The syndicate began underwriting on January 1, 2025,
and now serves as a key component of AIG’s reinsurance strategy,
which includes enhancements to the underlying structures and terms
of many of the reinsurance treaties we placed at January 1.
“While the early days of 2025 reflect increased global
volatility and complexity, AIG has entered a new era, and we are
moving forward with strong momentum on behalf of our colleagues,
customers, partners and stakeholders. With our focus on disciplined
capital management, sustained underwriting excellence and expense
management, we are well on track to deliver 10% plus core operating
return on equity for full year 2025.”
* Refers to financial measure not
calculated in accordance with generally accepted accounting
principles (non-GAAP); definitions of non-GAAP measures and
reconciliations to their closest GAAP measures can be found in this
news release under the heading Comment on Regulation G and Non-GAAP
Financial Measures.
† NPW on a comparable basis reflects
year-over-year comparison on a constant dollar basis adjusted for
the sale of Crop Risk Services (CRS) and the sale of Validus Re in
2023 and the sale of global personal travel and assistance business
(AIG’s Travel business) in 2024, where applicable. AATI, Adjusted
pre-tax income (APTI), underwriting income, net investment income
and ratios on a comparable basis reflect year-over-year comparisons
adjusted for the sale of CRS and the sale of Validus Re in 2023,
where applicable. Refer to pages 19, 22 and 23 for more detail on
selected financial measures.
FINANCIAL SUMMARY
Three Months Ended
December 31,
Twelve Months Ended
December 31,
($ and shares in millions, except per
share amounts)
2023
2024
2023
2024
Income attributable to AIG common
shareholders from continuing operations
$
855
$
947
$
2,712
$
2,678
Net income per diluted share attributable
from continuing operations
$
1.21
$
1.51
$
3.74
$
4.07
Net income (loss) attributable to AIG
common shareholders
$
86
$
898
$
3,614
$
(1,426
)
Net income (loss) per diluted share
attributable to AIG common shareholders
$
0.12
$
1.43
$
4.98
$
(2.17
)
Net investment income
$
909
$
1,313
$
3,446
$
4,255
Net investment income, APTI basis
877
872
3,195
3,484
Adjusted pre-tax income (loss)
$
1,208
$
1,083
$
4,321
$
4,324
General Insurance
1,437
1,233
5,371
4,977
Other Operations
(229
)
(150
)
(1,050
)
(653
)
Adjusted after-tax income attributable to
AIG common shareholders
$
908
$
817
$
3,205
$
3,254
Adjusted after-tax income per diluted
share attributable to AIG common shareholders
$
1.28
$
1.30
$
4.42
$
4.95
Weighted average common shares outstanding
- diluted
708.0
627.2
725.2
657.3
Return on equity
0.8
%
8.2
%
8.6
%
(3.2
)
%
Adjusted return on equity
6.5
%
7.2
%
5.6
%
6.6
%
Return on tangible equity
9.5
%
8.2
%
8.5
%
8.1
%
Core operating return on equity
10.3
%
9.1
%
9.6
%
9.1
%
Book value per share
$
65.14
$
70.16
$
65.14
$
70.16
Adjusted book value per share
$
78.50
$
73.79
$
78.50
$
73.79
Tangible book value per share
$
59.60
$
63.98
$
59.60
$
63.98
Core operating book value per share
$
52.74
$
61.75
$
52.74
$
61.75
Common shares outstanding (in
millions)
688.8
606.1
688.8
606.1
For the fourth quarter of 2024, net income attributable to AIG
common shareholders was $898 million, or $1.43 per diluted common
share, compared to $86 million, or $0.12 per diluted common share,
in the prior year quarter. The increase was mainly driven by higher
net loss from discontinued operations in the prior year
quarter.
AATI was $817 million, or $1.30 per diluted common share, for
the fourth quarter of 2024, compared to $908 million, or $1.28 per
diluted common share, in the prior year quarter, reflecting
improved results in Other Operations, partially offset by the
impact of the prior year divestitures and lower underwriting income
in General Insurance.
Total net investment income for the fourth quarter of 2024 was
$1.3 billion, an increase of 44% from $909 million in the prior
year quarter, reflecting dividends received from Corebridge of $29
million and changes in Corebridge’s stock price and gain on sale of
shares of $409 million during the quarter, higher income on
alternative investments and lower investment expenses, partially
offset by lower income from equity and fixed maturity securities
and loans in addition to a reduction in invested assets due to the
sale of Validus Re. Total net investment income on an APTI basis*
was $872 million, mostly flat compared to the prior year quarter.
In General Insurance, net investment income was down 2% from the
prior year quarter, or was flat from the prior year quarter on a
comparable basis.
In the fourth quarter of 2024, AIG returned approximately $2.1
billion to shareholders through $1.8 billion of common stock
repurchases representing approximately 24 million shares, and $244
million of common stock dividends. AIG parent liquidity was $7.7
billion as of December 31, 2024.
For full year 2024, net loss attributable to AIG common
shareholders was $1.4 billion, or $2.17 per diluted common share,
compared to net income of $3.6 billion, or $4.98 per diluted common
share, in the prior year. The decrease was primarily attributable
to a reduction in net income from discontinued operations as a
result of the change in accounting following the deconsolidation of
Corebridge, as described below.
AATI was $3.3 billion, or $4.95 per diluted common share, for
full year 2024, compared to $3.2 billion, or $4.42 per diluted
common share, in the prior year, reflecting higher net investment
income in General Insurance, improved results in Other Operations
and higher General Insurance underlying underwriting income
partially offset by higher catastrophe losses and the impact of
prior year divestitures.
Book value per share was $70.16 as of December 31, 2024, a
decrease of 1.8% from the previous quarter. Adjusted book value per
share* was $73.79, a decrease of 0.1% from the previous quarter.
Total debt to total capital ratio at December 31, 2024 was 17.0%
and total debt to total adjusted capital* ratio was 16.3%.
On February 11, 2025, the AIG Board of Directors declared a
quarterly cash dividend on AIG common stock of $0.40 per share. The
dividend is payable on March 31, 2025 to stockholders of record at
the close of business on March 17, 2025.
Corebridge Financial, Inc. (Corebridge) accounting treatment
after June 9, 2024: (i) AIG elected the fair value option and,
after that date, reflects its retained interest in Corebridge as an
equity method investment in other invested assets in AIG's
Consolidated Balance Sheets using Corebridge’s stock price as its
fair value, (ii) dividends received from Corebridge and changes in
its stock price are recognized in net investment income in AIG’s
Consolidated Financial Statements, and (iii) AIG’s adjusted pre-tax
income includes Corebridge dividends and excludes changes in the
fair value of Corebridge’s stock price and gain on sale of shares.
The historical financial results of Corebridge, for all periods
presented, are reflected in AIG’s Consolidated Financial Statements
as discontinued operations in accordance with generally accepted
accounting principles in the United States of America (U.S. GAAP)
and are included in net income but not in AATI, a non-GAAP
measure.
Realignment of Reportable Segments: In the fourth quarter
2024, AIG realigned its organizational structure and the
composition of its reportable segments to reflect changes in how
AIG manages its operations, specifically the level at which its
chief operating decision makers regularly review operating results
and allocate resources. AIG has three reportable segments: North
America Commercial, International Commercial and Global Personal.
General Insurance consists of our three reportable segments and the
net investment income related to our insurance operations. Prior
years’ presentations have been revised to conform to the new
reportable segments.
GENERAL INSURANCE
Three Months Ended December
31,
Twelve Months Ended December
31,
($ in millions)
2023
2024
Change
2023
2024
Change
Gross premiums written
$
7,631
$
8,022
5
%
$
38,928
$
35,701
(8
)
%
Net premiums written
$
5,755
$
6,077
6
%
$
26,719
$
23,902
(11
)
%
Underwriting income (loss)
$
642
$
454
(29
)
%
$
2,349
$
1,917
(18
)
%
Net investment income
$
795
$
779
(2
)
%
$
3,022
$
3,060
1
%
Adjusted pre-tax income
$
1,437
$
1,233
(14
)
%
$
5,371
$
4,977
(7
)
%
Underwriting ratios:
General Insurance (GI) CR
89.1
92.5
3.4
pts
90.6
91.8
1.2
pts
GI Loss ratio
56.5
59.7
3.2
58.9
59.8
0.9
Less: impact on loss ratio
Catastrophe losses and reinstatement
premiums
(2.1
)
(5.5
)
(3.4
)
(4.3
)
(5.0
)
(0.7
)
Prior year development, net of reinsurance
and prior year premiums
0.9
1.6
0.7
1.4
1.4
—
GI Accident year loss ratio, as
adjusted
55.3
55.8
0.5
56.0
56.2
0.2
GI Expense ratio
32.6
32.8
0.2
31.7
32.0
0.3
GI Accident year combined ratio, as
adjusted
87.9
88.6
0.7
pts
87.7
88.2
0.5
pts
Comparable Basis†:
Net premiums written
$
5,554
$
5,954
7
%
$
21,941
$
23,184
6
%
General Insurance (GI) CR
89.2
92.5
3.3
pts
91.3
91.8
0.5
pts
GI Accident year combined ratio, as
adjusted
88.3
88.6
0.3
pts
88.6
88.2
(0.4
)
pts
- Fourth quarter NPW of $6.1 billion increased 6% from the prior
year quarter on a reported basis, or 7% on a comparable basis†,
which was driven by 8%† growth in Global Commercial and 5%† growth
in Global Personal Insurance.
- Fourth quarter underwriting income was $454 million, a 29%
decrease from the prior year quarter, or 26% on a comparable
basis†, due principally to higher catastrophe charges.
- Fourth quarter total catastrophe-related charges were $325
million, representing 5.5 loss ratio points, of which $301 million
was in North America Commercial including losses from Hurricane
Milton and adjustments for prior quarters events, largely from
Hurricane Helene.
- Fourth quarter favorable PYD, net of reinsurance and prior year
premiums, was $82 million, representing a 1.6 point loss ratio
benefit. The favorable PYD was largely driven by favorable
development on U.S. Property, Canadian Casualty and Global Personal
Insurance along with the amortization benefit related to adverse
development cover.
- Fourth quarter combined ratio was 92.5%, compared to 89.1% in
the prior year quarter, or 89.2% on a comparable basis†. The AYCR
was 88.6%, compared to 87.9% in the prior year quarter, or 88.3% on
a comparable basis†.
- In the fourth quarter, General Insurance APTI* of $1.2 billion
decreased 14% from the prior year quarter, or 12% on a comparable
basis†, primarily driven by lower underwriting income.
- Full year 2024 General Insurance NPW of $23.9 billion decreased
11% from the prior year on a reported basis, but increased 6% on a
comparable basis†, primarily driven by 7%† growth in Global
Commercial.
- Full year combined ratio was 91.8%, compared to 90.6% in the
prior year, or 91.3% on a comparable basis†. The AYCR was 88.2%,
compared to 87.7% in the prior year, or 88.6% on a comparable
basis†.
GENERAL INSURANCE - NORTH AMERICA COMMERCIAL
Three Months Ended December
31,
Twelve Months Ended December
31,
($ in millions)
2023
2024
Change
2023
2024
Change
Net premiums written
$
2,111
$
2,224
5
%
$
11,432
$
8,452
(26
)
%
Underwriting income (loss)
$
329
$
25
(92
)
%
$
1,355
$
548
(60
)
%
Underwriting ratios:
CR
85.1
98.8
13.7
pts
86.8
93.3
6.5
pts
AYCR, as adjusted
84.3
84.6
0.3
pts
84.6
85.1
0.5
pts
Comparable Basis†:
Net premiums written
$
2,039
$
2,224
9
%
$
7,724
$
8,452
9
%
CR
84.4
98.8
14.4
pts
87.1
93.3
6.2
pts
AYCR, as adjusted
84.2
84.6
0.4
pts
85.6
85.1
(0.5
)
pts
- Fourth quarter NPW of $2.2 billion increased 5% from the prior
year quarter, or 9% on a comparable basis†. The growth was led by
Casualty and Lexington Insurance, benefiting from robust new
business production, which increased 17% year-over-year, strong
retention and continued positive rate trends.
- Fourth quarter combined ratio was 98.8%, compared to 85.1% in
the prior year quarter, or 84.4% on a comparable basis†. The
increase was mainly due to higher catastrophe charges predominantly
from Hurricane Milton and adjustments from prior quarters events,
largely from Hurricane Helene, as well as unfavorable PYD, net of
reinsurance, compared to favorable development in the prior year
quarter. The AYCR was 84.6%, compared to 84.3% in the prior year
quarter, or 84.2% on a comparable basis†.
- Full year North America Commercial NPW of $8.5 billion
decreased 26% from the prior year on a reported basis, but
increased 9% on a comparable basis†, primarily driven by growth in
Casualty and Lexington.
- Full year combined ratio was 93.3%, compared to 86.8% in the
prior year, or 87.1% on a comparable basis†. The increase is
primarily due to higher loss ratio, partially offset by improvement
in expense ratio. The AYCR was 85.1%, compared to 84.6% in the
prior year, or 85.6% on a comparable basis†.
GENERAL INSURANCE - INTERNATIONAL COMMERCIAL
Three Months Ended December
31,
Twelve Months Ended December
31,
($ in millions)
2023
2024
Change
2023
2024
Change
Net premiums written
$
1,911
$
2,089
9
%
$
8,168
$
8,364
2
%
Underwriting income (loss)
$
292
$
347
19
%
$
1,002
$
1,227
22
%
Underwriting ratios:
CR
85.5
83.1
(2.4
)
pts
87.4
84.9
(2.5
)
pts
AYCR, as adjusted
80.3
83.6
3.3
pts
81.7
83.0
1.3
pts
Comparable Basis†:
Net premiums written
$
1,946
$
2,089
7
%
$
8,056
$
8,364
4
%
CR
85.7
83.1
(2.6
)
pts
87.4
84.9
(2.5
)
pts
AYCR, as adjusted
80.7
83.6
2.9
pts
81.9
83.0
1.1
pts
- Fourth quarter NPW of $2.1 billion increased 9% from the prior
year quarter, or 7% on a comparable basis†, attributable to growth
in Global Specialty and Property, primarily driven by strong new
business production and retention.
- Fourth quarter combined ratio was 83.1%, compared to 85.5% in
the prior year quarter. The AYCR was 83.6%, compared to 80.3% in
the prior year quarter.
- Full year International Commercial NPW of $8.4 billion
increased 2% from the prior year, or 4% on a comparable basis†,
primarily attributable to growth in Global Specialty and
Property.
- Full year combined ratio was 84.9%, compared to 87.4% in the
prior year. The improvement was attributable to continued excellent
AYCR underwriting results, lower catastrophe losses and favorable
PYD, compared to unfavorable PYD in the prior year. The AYCR was
83.0%, compared to 81.7% in the prior year, and the increase was
mainly due to higher expense ratio.
GENERAL INSURANCE - GLOBAL PERSONAL
Three Months Ended December
31,
Twelve Months Ended December
31,
($ in millions)
2023
2024
Change
2023
2024
Change
Net premiums written
$
1,733
$
1,764
2
%
$
7,119
$
7,086
—
%
Underwriting income (loss)
$
21
$
82
290
%
$
$ (8
)
$
142
NM
%
Underwriting ratios:
CR
98.8
95.4
(3.4
)
pts
100.1
98.0
(2.1
)
pts
AYCR, as adjusted
101.8
98.7
(3.1
)
pts
99.3
97.6
(1.7
)
pts
Comparable Basis†:
Net premiums written
$
1,569
$
1,641
5
%
$
6,161
$
6,368
3
%
- Fourth quarter NPW of $1.8 billion increased 2% from the prior
year quarter, or 5% on a comparable basis†, driven by growth in
High Net Worth and Auto, partially offset by lower production in
Warranty.
- Fourth quarter combined ratio was 95.4%, compared to 98.8% in
the prior year quarter. The AYCR was 98.7%, compared to 101.8% in
the prior year quarter.
- Full year Global Personal Insurance NPW of $7.1 billion was
almost flat compared to the prior year, but increased 3% on a
comparable basis†.
- Full year combined ratio was 98.0%, compared to 100.1% in the
prior year. The AYCR was 97.6%, compared to 99.3% in the prior
year.
In the fourth quarter of 2024, AIG realigned its organizational
structure and began excluding the net results of run-off businesses
previously reported in Other Operations from APTI. Historical
results have been recast to reflect these changes.
OTHER OPERATIONS
Three Months Ended December
31,
Twelve Months Ended December
31,
($ in millions)
2023
2024
Change
2023
2024
Change
Net investment income and other
$
75
$
99
32
%
$
190
$
434
128
%
Corporate and other general operating
expenses
(179
)
(137
)
23
(698
)
(623
)
11
Amortization of intangible assets
(5
)
(5
)
—
(27
)
(18
)
33
Interest expense
(119
)
(109
)
8
(498
)
(445
)
11
Adjusted pre-tax loss before consolidation
and eliminations
$
(228
)
$
(152
)
33
$
(1,033
)
$
(652
)
37
Total consolidation and eliminations
(1
)
2
NM
(17
)
(1
)
94
Adjusted pre-tax loss
$
(229
)
$
(150
)
34
%
$
(1,050
)
$
(653
)
38
%
- Other Operations has been further simplified and predominantly
consists of Net Investment Income from our AIG Parent liquidity
portfolio, Corebridge dividend income, corporate General operating
expenses (GOE), and Interest expense.
- Net investment income and other in the fourth quarter increased
$24 million from the prior year quarter due to dividend income
received from Corebridge in the fourth quarter of 2024.
- Corporate and other GOE improved $42 million from the prior
year quarter, reflecting portions of benefits from the savings of
AIG Next and incremental GOE expenses being transferred into
General Insurance.
- Interest expense decreased $10 million from the prior year
quarter, primarily driven by debt reduction.
- Net investment income and other for full year increased $244
million from the prior year, due to dividend income received from
Corebridge starting in the second quarter of 2024 and higher income
on parent short-term investments.
- Corporate and other GOE improved $75 million from the prior
year, reflecting portions of the benefits from the savings of AIG
Next and incremental GOE expense being transferred into General
Insurance.
- Interest expense decreased $53 million from the prior year,
primarily driven by interest savings from debt repurchases.
CONFERENCE CALL AIG will host a conference call tomorrow,
Wednesday, February 12, 2025 at 8:30 a.m. ET to review these
results. The call is open to the public and can be accessed via a
live, listen-only webcast in the Investors section of www.aig.com.
A replay will be available after the call at the same location.
# # #
Additional supplementary financial data is available in the
Investors section at www.aig.com.
Cautionary Statement Regarding Forward-Looking Information
and Factors That May Affect Future Results Certain statements
in this press release and other publicly available documents may
include, and members of management may from time to time make and
discuss, statements which, to the extent they are not statements of
historical or present fact, may constitute “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These forward‑looking statements are
intended to provide management’s current expectations or plans for
future operating and financial performance, based on assumptions
currently believed to be valid and accurate. Forward-looking
statements are often preceded by, followed by or include words such
as “will,” “believe,” “anticipate,” “expect,” “expectations,”
“intend,” “plan,” “strategy,” “prospects,” “project,” “anticipate,”
“should,” “guidance,” “outlook,” “confident,” “focused on
achieving,” “view,” “target,” “goal,” “estimate” and other words of
similar meaning in connection with a discussion of future operating
or financial performance. These statements may include, among other
things, projections, goals and assumptions that relate to future
actions, prospective services or products, future performance or
results of current and anticipated services or products, sales
efforts, expense reduction efforts, the outcome of contingencies
such as legal proceedings, anticipated organizational, business or
regulatory changes, the effect of catastrophic events, both natural
and man-made, and macroeconomic and/or geopolitical events,
anticipated dispositions, monetization and/or acquisitions of
businesses or assets, the successful integration of acquired
businesses, management succession and retention plans, exposure to
risk, trends in operations and financial results, and other
statements that are not historical facts.
All forward-looking statements involve risks, uncertainties and
other factors that may cause actual results and financial condition
to differ, possibly materially, from the results and financial
condition expressed or implied in the forward-looking statements.
Factors that could cause actual results to differ, possibly
materially, from those in specific projections, targets, goals,
plans, assumptions and other forward-looking statements include,
without limitation:
- the impact of adverse developments affecting economic
conditions in the markets in which we operate in the U.S. and
globally, including financial market conditions, macroeconomic
trends, fluctuations in interest rates and foreign currency
exchange rates, inflationary pressures, including social inflation,
pressures on the commercial real estate market, and an economic
slowdown or recession and geopolitical events or conflicts;
- the occurrence of catastrophic events, both natural and
man-made, which may be exacerbated by the effects of climate
change;
- disruptions in the availability or accessibility of our or a
third party’s information technology systems, including hardware
and software, infrastructure or networks, and the inability to
safeguard the confidentiality and integrity of customer, employee
or company data due to cyberattacks, data security breaches or
infrastructure vulnerabilities;
- our ability to effectively implement technological
advancements, including the use of artificial intelligence (AI),
and respond to competitors' AI and other technology
initiatives;
- the effects of changes in laws and regulations, including those
relating to privacy, data protection, cybersecurity and AI, and the
regulation of insurance, in the U.S. and other countries in which
we operate;
- our ability to successfully dispose of, monetize and/or acquire
businesses or assets or successfully integrate acquired businesses,
and the anticipated benefits thereof;
- concentrations in our investment portfolios, including our
continuing equity market exposure to Corebridge Financial, Inc.
(Corebridge);
- our reliance on third-party investment managers;
- changes in the valuation of our investments;
- our reliance on third parties to provide certain business and
administrative services;
- availability of adequate reinsurance or access to reinsurance
on acceptable terms;
- our ability to adequately assess risk and estimate related
losses as well as the effectiveness of our enterprise risk
management policies and procedures;
- changes in judgments or assumptions concerning insurance
underwriting and insurance liabilities;
- concentrations of our insurance, reinsurance and other risk
exposures;
- nonperformance or defaults by counterparties;
- the effectiveness of strategies to retain and recruit key
personnel and to implement effective succession plans;
- difficulty in marketing and distributing products through
current and future distribution channels;
- actions by rating agencies with respect to our credit and
financial strength ratings as well as those of its businesses and
subsidiaries;
- changes in judgments concerning the recognition of deferred tax
assets and the impairment of goodwill;
- our ability to address evolving global stakeholder expectations
and regulatory requirements with respect to environmental, social
and governance matters;
- the effects of sanctions and the failure to comply with those
sanctions;
- our ability to effectively implement restructuring initiatives
and potential cost-savings opportunities;
- changes to sources of or access to liquidity;
- changes in accounting principles and financial reporting
requirements or their applicability to us;
- changes to tax laws in the U.S. and other countries in which we
operate;
- the outcome of significant legal, regulatory or governmental
proceedings;
- our ability to effectively execute on sustainability targets
and standards;
- the impact of epidemics, pandemics and other public health
crises and responses thereto; and
- such other factors discussed in:
- Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) in AIG’s Annual Report on Form 10-K for the
year ended December 31, 2024 (which will be filed with the
Securities and Exchange Commission (SEC)); and
- our other filings with the SEC.
Forward-looking statements speak only as of the date of this
press release, or in the case of any document incorporated by
reference, the date of that document. AIG is not under any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law. Additional
information as to factors that may cause actual results to differ
materially from those expressed or implied in any forward-looking
statements is disclosed from time to time in our filings with the
SEC.
# # #
COMMENT ON REGULATION G AND NON-GAAP FINANCIAL
MEASURES
Throughout this press release, including the financial
highlights, AIG presents its financial condition and results of
operations in the way it believes will be most meaningful and
representative of its business results. Some of the measurements
AIG uses are “Non-GAAP financial measures” under SEC rules and
regulations. GAAP is the acronym for generally accepted accounting
principles in the United States. The non-GAAP financial measures
AIG presents are listed below and may not be comparable to
similarly-named measures reported by other companies. The
reconciliations of such measures to the most comparable GAAP
measures in accordance with Regulation G are included within the
relevant tables attached to this news release or in the Fourth
Quarter 2024 Financial Supplement available in the Investors
section of AIG’s website, www.aig.com.
Unless otherwise mentioned or unless the context indicates
otherwise, we use the terms “AIG,” “we,” “us” and “our” to refer to
American International Group, Inc., a Delaware corporation, and its
consolidated subsidiaries.
AIG uses the following operating performance measures because
AIG believes they enhance the understanding of the underlying
profitability of continuing operations and trends of AIG’s
segments. AIG believes they also allow for more meaningful
comparisons with AIG’s insurance competitors. When AIG uses these
measures, reconciliations to the most comparable GAAP measure are
provided on a consolidated basis.
Book value per share, excluding investments related
cumulative unrealized gains and losses recorded in Accumulated
other comprehensive income (loss) (AOCI) adjusted for the
cumulative unrealized gains and losses related to Fortitude Re
funds withheld assets (collectively, Investments AOCI) (Adjusted
book value per share) is used to show the amount of our net
worth on a per share basis after eliminating the fair value of
investments that can fluctuate significantly from period to period
due to changes in market conditions. In addition, we adjust for the
cumulative unrealized gains and losses related to Fortitude Re
funds withheld assets held by AIG in support of Fortitude Re’s
reinsurance obligations to AIG (Fortitude Re funds withheld assets)
since these fair value movements are economically transferred to
Fortitude Re. Adjusted book value per share is derived by dividing
total AIG common shareholders’ equity, excluding Investments AOCI
(AIG adjusted common shareholders' equity) by total common
shares outstanding.
Book Value per share, excluding Goodwill, Value of business
acquired (VOBA), Value of distribution channel acquired (VODA) and
Other intangible assets (Tangible book value per share) is used
to provide a useful measure of the realizable shareholder value on
a per share basis. Tangible book value per share is derived by
dividing Total AIG common shareholders’ equity, excluding
intangible assets (AIG tangible common shareholders’ equity)
by total common shares outstanding.
Book value per share, excluding Investments AOCI, deferred
tax assets (DTA) and AIG’s ownership interest in Corebridge (Core
operating book value per share) is used to show the amount of
our net worth on a per share basis after eliminating Investments
AOCI, DTA and AIG’s ownership interest in Corebridge. We believe
this measure is useful to investors because it eliminates the fair
value of investments that can fluctuate significantly from period
to period due to changes in market conditions. We also exclude the
portion of DTA representing U.S. tax attributes related to net
operating loss carryforwards (NOLs), corporate alternative minimum
tax credits (CAMTCs) and foreign tax credits (FTCs) that have not
yet been utilized. Amounts for interim periods are estimates based
on projections of full-year attribute utilization. As NOLs, CAMTCs
and FTCs are utilized, the corresponding portion of the DTA
utilized is included. We exclude AIG’s ownership interest in
Corebridge since it is not a core long-term investment for AIG.
Core operating book value per share is derived by dividing total
AIG common shareholders’ equity, excluding Investments AOCI, DTA
and AIG’s ownership interest in Corebridge (AIG core operating
shareholders’ equity) by total common shares outstanding.
Total debt and preferred stock to total adjusted capital
ratio is used to show the AIG’s debt leverage adjusted for
Investments AOCI and is derived by dividing total debt and
preferred stock by total capital excluding Investments AOCI (Total
adjusted capital). We believe this measure is useful to
investors because it eliminates items that can fluctuate
significantly from period to period due to changes in market
conditions. In addition, we adjust for the cumulative unrealized
gains and losses related to Fortitude Re funds withheld assets
since these fair value movements are economically transferred to
Fortitude Re.
Return on equity – Adjusted after-tax income excluding
Investments AOCI (Adjusted return on equity) is used to show
the rate of return on common shareholders’ equity excluding
Investments AOCI. We believe this measure is useful to investors
because it eliminates the fair value of investments which can
fluctuate significantly from period to period due to changes in
market conditions. Adjusted return on equity is derived by dividing
actual or, for interim periods, annualized adjusted after-tax
income attributable to AIG common shareholders by average AIG
adjusted common shareholders’ equity.
Return on Equity – Adjusted After-tax Income, Excluding
Goodwill, VOBA, VODA and Other Intangible assets (Return on
tangible equity) is used to show the return on AIG tangible
common shareholder’s equity, which we believe is a useful measure
of realizable shareholder value. We exclude Goodwill, VOBA, VODA
and Other intangible assets from AIG common shareholders’ equity to
derive AIG tangible common shareholders’ equity. Return on AIG
tangible common equity is derived by dividing actual or, for
interim periods, annualized adjusted after-tax income attributable
to AIG common shareholders by average AIG tangible common
shareholders' equity.
Return on equity – Adjusted after-tax income excluding
Investments AOCI, DTA and AIG’s ownership interest in Corebridge
(Core operating return on equity) is used to show the rate of
return on common shareholders’ equity excluding Investments AOCI,
DTA and AIG’s ownership interest in Corebridge. We believe this
measure is useful to investors because it eliminates the fair value
of investments that can fluctuate significantly from period to
period due to changes in market conditions. We also exclude the
portion of DTA representing U.S. tax attributes related to NOLs,
CAMTCs and FTCs that have not yet been utilized. Amounts for
interim periods are estimates based on projections of full-year
attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the
corresponding portion of the DTA utilized is included. We exclude
AIG’s ownership interest in Corebridge since it is not a core
long-term investment for AIG. We believe this metric will provide
investors with greater insight as to the underlying profitability
of our property and casualty business. Core operating return on
equity is derived by dividing actual or, for interim periods,
annualized adjusted after-tax income attributable to AIG common
shareholders by average AIG core operating shareholders’
equity.
Adjusted Pre-tax Income (APTI) is derived by excluding
the items set forth below from income from continuing operations
before income tax:
- changes in the fair values of equity securities, AIG's
investment in Corebridge and gain on sale of shares;
- net investment income on Fortitude Re funds withheld
assets;
- net realized gains and losses on Fortitude Re funds withheld
assets;
- loss (gain) on extinguishment of debt;
- all net realized gains and losses except earned income
(periodic settlements and changes in settlement accruals) on
derivative instruments used for non-qualifying (economic) hedging
or for asset replication. Earned income on such economic hedges is
reclassified from net realized gains and losses to specific APTI
line items based on the economic risk being hedged (e.g. net
investment income);
- income or loss from discontinued operations;
- net loss reserve discount benefit (charge);
- net results of businesses in run-off;
- pension expense related to lump sum payments to former
employees;
- net gain or loss on divestitures and other;
- non-operating litigation reserves and settlements;
- restructuring and other costs related to initiatives designed
to reduce operating expenses, improve efficiency and simplify our
organization;
- the portion of favorable or unfavorable prior year reserve
development for which we have ceded the risk under retroactive
reinsurance agreements and related changes in amortization of the
deferred gain;
- integration and transaction costs associated with acquiring or
divesting businesses;
- losses from the impairment of goodwill;
- non-recurring costs associated with the implementation of
non-ordinary course legal or regulatory changes or changes to
accounting principles; and
- income from elimination of the international reporting
lag.
Adjusted After-tax Income attributable to AIG common
shareholders (AATI) is derived by excluding the tax effected
APTI adjustments described above, dividends on preferred stock and
preferred stock redemption premiums, noncontrolling interest on net
realized gains (losses), other non-operating expenses and the
following tax items from net income attributable to AIG:
- deferred income tax valuation allowance releases and
charges;
- changes in uncertain tax positions and other tax items related
to legacy matters having no relevance to our current businesses or
operating performance; and
- net tax charge related to the enactment of the Tax Cuts and
Jobs Act.
See page 15 for the reconciliation of Net income attributable to
AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: We, along with most property and casualty
insurance companies, use the loss ratio, the expense ratio and the
combined ratio as measures of underwriting performance. These
ratios are relative measurements that describe, for every $100 of
net premiums earned, the amount of losses and loss adjustment
expenses (which for General Insurance excludes net loss reserve
discount), and the amount of other underwriting expenses that would
be incurred. A combined ratio of less than 100 indicates
underwriting income and a combined ratio of over 100 indicates an
underwriting loss. Our ratios are calculated using the relevant
segment information calculated under GAAP, and thus may not be
comparable to similar ratios calculated for regulatory reporting
purposes. The underwriting environment varies across countries and
products, as does the degree of litigation activity, all of which
affect such ratios. In addition, investment returns, local taxes,
cost of capital, regulation, product type and competition can have
an effect on pricing and consequently on profitability as reflected
in underwriting income and associated ratios.
Accident year loss and Accident year combined ratios, as
adjusted (Accident year loss ratio, ex-CAT and Accident year
combined ratio, ex-CAT): both the accident year loss and
accident year combined ratios, as adjusted, exclude catastrophe
losses (CATs) and related reinstatement premiums, prior year
development, net of premium adjustments, and the impact of reserve
discounting. Natural catastrophe losses are generally weather or
seismic events, in each case, having a net impact on AIG in excess
of $10 million and man-made catastrophe losses, such as terrorism
and civil disorders that exceed the $10 million threshold. We
believe that as adjusted ratios are meaningful measures of our
underwriting results on an ongoing basis as they exclude
catastrophes and the impact of reserve discounting which are
outside of management’s control. We also exclude prior year
development to provide transparency related to current accident
year results.
Underwriting ratios
are computed as follows:
a.
Loss ratio = Loss and loss adjustment
expenses incurred ÷ Net premiums earned (NPE)
b.
Acquisition ratio = Total acquisition
expenses ÷ NPE
c.
General operating expense ratio = General
operating expenses ÷ NPE
d.
Expense ratio = Acquisition ratio +
General operating expense ratio
e.
Combined ratio = Loss ratio + Expense
ratio
f.
CATs and reinstatement premiums ratio =
[Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-)
Reinstatement premiums related to catastrophes] – Loss ratio
g.
Accident year loss ratio, as adjusted
(AYLR ex-CAT) = [Loss and loss adjustment expenses incurred – CATs
– PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes
+/(-) Prior year premiums + Adjustment for ceded premium under
reinsurance contracts related to prior accident years]
h.
Accident year combined ratio, as adjusted
(AYCR ex-CAT) = AYLR ex-CAT + Expense ratio
i.
Prior year development net of reinsurance
and prior year premiums ratio = [Loss and loss adjustment expenses
incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related
to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs and
reinstatement premiums ratio.
Results from discontinued operations, including Corebridge, are
excluded from all of these measures.
# # #
American International Group, Inc. (NYSE: AIG) is a leading
global insurance organization. AIG provides insurance solutions
that help businesses and individuals in more than 200 countries and
jurisdictions protect their assets and manage risks through AIG
operations, licenses and authorizations as well as network
partners.
AIG is the marketing name for the worldwide operations of
American International Group, Inc. All products and services are
written or provided by subsidiaries or affiliates of American
International Group, Inc. Products or services may not be available
in all countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation
($ in millions, except per
common share data)
Reconciliations of Adjusted Pre-tax and
After-tax Income
Three Months Ended December
31,
2023
2024
Pre-tax
Total Tax (Benefit) Charge
Non- controlling Interests(a)
After Tax
Pre-tax
Total Tax
(Benefits) Charge
Non- controlling
Interests(a)
After Tax
Pre-tax income/net income (loss),
including noncontrolling interests
$
479
$
(383
)
$
—
$
(473
)
$
1,546
$
599
$
—
$
901
Noncontrolling interests(a)
—
—
566
566
—
—
(3
)
(3
)
Pre-tax income/net income attributable
to AIG
479
(383
)
566
93
1,546
599
(3
)
898
Dividends on preferred stock and preferred
stock redemption premiums
7
—
Net income attributable to AIG common
shareholders
86
898
Adjustments:
Changes in uncertain tax positions and
other tax adjustments
1
—
(1
)
(247
)
—
247
Deferred income tax valuation allowance
releases(b)
416
—
(416
)
15
—
(15
)
Changes in the fair values of equity
securities, AIG's investment in Corebridge and gain on sale of
shares
40
8
—
32
(414
)
(87
)
—
(327
)
(Gain) loss on extinguishment of debt and
preferred stock redemption premiums
(58
)
(12
)
—
(46
)
13
3
—
10
Net investment income on Fortitude Re
funds withheld assets
(74
)
(16
)
—
(58
)
(21
)
(4
)
—
(17
)
Net realized losses on Fortitude Re funds
withheld assets
7
2
—
5
1
—
—
1
Net realized gains on Fortitude Re funds
withheld embedded derivative
248
52
—
196
(83
)
(17
)
—
(66
)
Net realized losses(c)
170
(3
)
—
173
194
67
—
127
Loss from discontinued operations
1,335
46
Net (gain) loss on divestitures and
other
118
168
—
(50
)
(522
)
(140
)
—
(382
)
Non-operating litigation reserves and
settlements
1
—
—
1
—
—
—
—
Unfavorable prior year development and
related amortization changes ceded under retroactive reinsurance
agreements
50
11
—
39
39
8
—
31
Net loss reserve discount charge
110
23
—
87
95
20
—
75
Net results of businesses in
run-off(d)
17
4
—
13
115
24
—
91
Pension expense related to lump sum
payments to former employees
9
2
—
7
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
(4
)
(1
)
—
(3
)
2
—
—
2
Restructuring and other costs
92
20
—
72
115
24
—
91
Non-recurring costs related to regulatory
or accounting changes
3
1
—
2
3
1
—
2
Noncontrolling interests(a)
(566
)
(566
)
3
3
Adjusted pre-tax income/Adjusted
after-tax income attributable to AIG common shareholders
$
1,208
$
293
$
—
$
908
$
1,083
$
266
$
—
$
817
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliations of Adjusted Pre-tax and
After-tax Income
Twelve Months Ended December
31,
2023
2024
Pre-tax
Total Tax (Benefits) Charge
Non- controlling Interests(a)
After Tax
Pre-tax
Total Tax
(Benefits) Charge
Non- controlling
Interests(a)
After Tax
Pre-tax income/net income (loss),
including noncontrolling interests
$
2,867
$
126
$
—
$
3,878
$
3,870
$
1,170
$
—
$
(926
)
Noncontrolling interests(a)
—
—
(235
)
(235
)
—
—
(478
)
(478
)
Pre-tax income/net income (loss)
attributable to AIG
2,867
126
(235
)
3,643
3,870
1,170
(478
)
(1,404
)
Dividends on preferred stock and preferred
stock redemption premiums
29
22
Net income (loss) attributable to AIG
common shareholders
3,614
(1,426
)
Adjustments:
Changes in uncertain tax positions and
other tax adjustments
—
176
—
(176
)
—
(239
)
—
239
Deferred income tax valuation allowance
releases(b)
—
365
—
(365
)
—
30
—
(30
)
Changes in the fair values of equity
securities, AIG's investment in Corebridge and gain on sale of
shares
(53
)
(11
)
—
(42
)
(586
)
(123
)
—
(463
)
(Gain) loss on extinguishment of debt and
preferred stock redemption premiums
(37
)
(8
)
—
(29
)
14
3
—
26
Net investment income on Fortitude Re
funds withheld assets
(180
)
(38
)
—
(142
)
(144
)
(30
)
—
(114
)
Net realized losses on Fortitude Re funds
withheld assets
71
15
—
56
39
8
—
31
Net realized (gains) losses on Fortitude
Re funds withheld embedded derivative
273
57
—
216
75
16
—
59
Net realized losses(c)
743
128
—
615
428
95
—
333
(Income) loss from discontinued
operations
(1,137
)
3,626
Net (gain) loss on divestitures and
other
29
149
—
(120
)
(616
)
(128
)
—
(488
)
Non-operating litigation reserves and
settlements
1
—
—
1
—
—
—
—
Unfavorable (favorable) prior year
development and related amortization changes ceded under
retroactive reinsurance agreements
(62
)
(13
)
—
(49
)
105
22
—
83
Net loss reserve discount charge
195
41
—
154
226
47
—
179
Net results of businesses in
run-off(d)
31
7
—
24
111
24
—
87
Pension expense related to lump sum
payments to former employees
71
15
—
56
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
6
1
—
5
39
8
—
31
Restructuring and other costs(e)
356
75
—
281
745
156
—
589
Non-recurring costs related to regulatory
or accounting changes
22
5
—
17
18
4
—
14
Net impact from elimination of
international reporting lag(f)
(12
)
(3
)
—
(9
)
—
—
—
—
Noncontrolling interests(a)
235
235
478
478
Adjusted pre-tax income/Adjusted
after-tax income attributable to AIG common shareholders
$
4,321
$
1,087
$
—
$
3,205
$
4,324
$
1,063
$
—
$
3,254
(a)
Noncontrolling interest primarily relates
to Corebridge and is the portion of Corebridge earnings that AIG
did not own. Corebridge is consolidated until June 9, 2024. The
historical results of Corebridge owned by AIG are reflected in the
Income (loss) from discontinued operations, net of income
taxes.
(b)
The year ended December 31, 2023 includes
a valuation allowance release related to a portion of certain tax
attribute carryforwards of AIG's U.S. federal consolidated income
tax group, as well as valuation allowance changes in certain
foreign jurisdictions.
(c)
Includes all Net realized gains and losses
except earned income (periodic settlements and changes in
settlement accruals) on derivative instruments used for
non-qualifying (economic) hedging or for asset replication and net
realized gains and losses on Fortitude Re funds withheld
assets.
(d)
In the fourth quarter of 2024, AIG
realigned and began excluding the net results of run-off businesses
previously reported in Other Operations from Adjusted pre-tax
income. Historical results have been recast to reflect these
changes.
(e)
In the twelve months ended December 31,
2024, restructuring and other costs increased primarily as a result
of employee-related costs, including severance, and real estate
impairment charges.
(f)
Effective in the quarter ended December
31, 2022, the foreign property and casualty subsidiaries report on
a calendar year ending December 31. We determined that the effect
of not retroactively applying this change was immaterial to our
Consolidated Financial Statements for the current and prior
periods. Therefore, we reported the cumulative effect of the change
in accounting principle within the Consolidated Statements of
Income (Loss) for the year ended December 31, 2022 and did not
retrospectively apply the effects of this change to prior
periods.
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation
($ in millions, except per
common share data)
Reconciliations of General Insurance
and Other Operations Net Investment Income and Other and Adjusted
Pre-tax Income
Three Months Ended December
31,
2023
2024
General Insurance
Other Operations
General Insurance
Other Operations
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net investment income and other/Pre-tax
income (loss)
$
796
$
854
$
117
$
(375
)
$
815
$
1,469
$
503
$
77
Consolidation and Eliminations
—
—
(7
)
—
—
—
(1
)
—
Other income (expense) - net
(11
)
—
5
—
—
—
2
—
Changes in the fair values of equity
securities, AIG's investment in Corebridge and gain on sale of
shares
9
9
31
31
(35
)
(35
)
(379
)
(379
)
(Gain) loss on extinguishment of debt
—
—
—
(58
)
—
—
—
13
Net investment income on Fortitude Re
funds withheld assets
—
—
(74
)
(74
)
(1
)
(1
)
(20
)
(20
)
Net realized losses on Fortitude Re funds
withheld assets
—
(1
)
—
8
—
7
—
(6
)
Net realized (gains) losses on Fortitude
Re funds withheld embedded derivative
—
—
—
248
—
—
—
(83
)
Net realized (gains) losses
1
205
5
(35
)
—
113
(2
)
81
Net loss (gain) on divestitures and
other
—
118
—
—
—
(517
)
—
(5
)
Non-operating litigation reserves and
settlements
—
—
—
1
—
—
—
—
Unfavorable (favorable) prior year
development and related amortization changes ceded under
retroactive reinsurance agreements
—
48
—
2
—
(11
)
—
50
Net loss reserve discount (benefit)
charge
—
110
—
—
—
95
—
—
Net results of businesses in run-off
—
—
(2
)
17
—
—
(4
)
115
Pension expense related to lump sum
payments to former employees
—
6
—
3
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
—
1
—
(5
)
—
—
—
2
Restructuring and other costs
—
84
—
8
—
110
—
5
Non-recurring costs related to regulatory
or accounting changes
—
3
—
—
—
3
—
—
Net investment income and other, APTI
basis/Adjusted pre-tax income (loss)
$
795
$
1,437
$
75
$
(229
)
$
779
$
1,233
$
99
$
(150
)
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliations of General Insurance
and Other Operations Net Investment Income and Other and Adjusted
Pre-tax Income
Twelve Months Ended December
31,
2023
2024
General Insurance
Other Operations
General Insurance
Other Operations
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net
Investment
Income
and Other
Pre-tax
Income
(Loss)
Net investment income and other/Pre-tax
income (loss)
$
3,150
$
4,308
$
302
$
(1,441
)
$
3,215
$
4,474
$
1,047
$
(604
)
Consolidation and Eliminations
—
—
13
—
—
—
—
—
Other income (expense) - net
(49
)
—
39
—
(31
)
—
18
—
Changes in the fair values of equity
securities, AIG's investment in Corebridge and gain on sale of
shares
(84
)
(84
)
31
31
(73
)
(73
)
(513
)
(513
)
(Gain) loss on extinguishment of debt
—
—
—
(37
)
—
—
—
14
Net investment income on Fortitude Re
funds withheld assets
(4
)
(4
)
(176
)
(176
)
(44
)
(44
)
(100
)
(100
)
Net realized losses on Fortitude Re funds
withheld assets
—
1
—
70
—
8
—
31
Net realized (gains) losses on Fortitude
Re funds withheld embedded derivative
—
(18
)
—
291
—
—
—
75
Net realized (gains) losses
10
731
2
12
(7
)
330
(1
)
98
Net loss (gain) on divestitures and
other
—
18
—
11
—
(522
)
—
(94
)
Non-operating litigation reserves and
settlements
—
—
—
1
—
—
—
—
Unfavorable (favorable) prior year
development and related amortization changes ceded under
retroactive reinsurance agreements
—
(42
)
—
(20
)
—
101
—
4
Net loss reserve discount (benefit)
charge
—
195
—
—
—
226
—
—
Net results of businesses in run-off
—
—
(21
)
31
—
—
(17
)
111
Pension expense related to lump sum
payments to former employees
—
60
—
11
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
—
1
—
5
—
—
—
39
Restructuring and other costs
—
195
—
161
—
459
—
286
Non-recurring costs related to regulatory
or accounting changes
—
22
—
—
—
18
—
—
Net impact from elimination of
international reporting lag
(1
)
(12
)
—
—
—
—
—
—
Net investment income and other, APTI
basis/Adjusted pre-tax income (loss)
$
3,022
$
5,371
$
190
$
(1,050
)
$
3,060
$
4,977
$
434
$
(653
)
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Summary of Key Financial
Metrics
Three Months Ended December
31,
Twelve Months Ended December
31,
Earnings per common share:
2023
2024
% Inc. (Dec.)
2023
2024
% Inc. (Dec.)
Basic
Income from continuing operations
$
1.22
$
1.53
25.4
%
$
3.77
$
4.11
9.0
%
Income (loss) from discontinued
operations
(1.10
)
(0.08
)
92.7
1.25
(6.30
)
NM
Net income (loss) attributable to AIG
common shareholders
$
0.12
$
1.45
NM
$
5.02
$
(2.19
)
NM
Diluted
Income from continuing operations
$
1.21
$
1.51
24.8
$
3.74
$
4.07
8.8
Income (loss) from discontinued
operations
(1.09
)
(0.08
)
92.7
1.24
(6.24
)
NM
Net income (loss) attributable to AIG
common shareholders
$
0.12
$
1.43
NM
$
4.98
$
(2.17
)
NM
Adjusted after-tax income attributable
to AIG common shareholders per diluted share
$
1.28
$
1.30
1.6
%
$
4.42
$
4.95
12.0
%
Weighted average shares
outstanding:
Basic
701.5
620.9
719.5
651.4
Diluted
708.0
627.2
725.2
657.3
Reconciliation of Adjusted After-tax
Income, Comparable Basis
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2024
2023
2024
Adjusted after-tax income attributable
to AIG common shareholders, as reported
$
908
$
817
$
3,205
$
3,254
Validus Re and Crop Risk Services
(33
)
—
(404
)
—
Adjusted after-tax income attributable
to AIG common shareholders, comparable basis
875
817
2,801
3,254
Adjusted after-tax income attributable
to AIG common shareholders per diluted share, comparable
basis
1.24
1.30
3.86
4.95
Reconciliation of Net Investment
Income
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2024
2023
2024
Net Investment Income per Consolidated
Statements of Operations
$
909
$
1,313
$
3,446
$
4,255
Changes in the fair values of equity
securities and AIG's investment in Corebridge
40
(414
)
(53
)
(586
)
Net investment income on Fortitude Re
funds withheld assets
(74
)
(21
)
(180
)
(144
)
Net realized gains (losses) related to
economic hedges and other
4
(2
)
4
(24
)
Net investment income of businesses in
run-off
(2
)
(4
)
(21
)
(17
)
Net impact from elimination of
International reporting lag
—
—
(1
)
—
Total Net Investment Income - APTI
Basis
$
877
$
872
$
3,195
$
3,484
General Insurance Net Investment
Income, APTI basis
$
795
$
779
Validus Re
(11
)
—
General Insurance Net Investment
Income, APTI basis, comparable basis
$
784
$
779
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliation of Book Value per
Share
As of period
end:
December 31, 2023
September 30, 2024
December 31,
2024
Total AIG shareholders' equity
$
45,351
$
45,039
$
42,521
Less: Preferred equity
485
—
—
Total AIG common shareholders' equity
(a)
44,866
45,039
42,521
Less: Investments AOCI
(10,994
)
(2,074
)
(2,872
)
Add: Cumulative unrealized gains and
losses related to Fortitude Re Funds withheld assets
(1,791
)
(531
)
(667
)
Subtotal Investments AOCI
(9,203
)
(1,543
)
(2,205
)
Total adjusted common shareholders'
equity (b)
$
54,069
$
46,582
$
44,726
Less: Intangible assets:
Goodwill
3,422
3,453
3,373
Value of distribution channel acquired
145
132
127
Other intangibles
249
249
243
Total intangible assets
3,816
3,834
3,743
AIG tangible common shareholders'
equity (c)
$
41,050
$
41,205
$
38,778
Less: AIG's ownership interest in
Corebridge
6,738
8,143
3,810
Less: Investments related AOCI - AIG
(3,084
)
(2,074
)
(2,872
)
Add: Cumulative unrealized gains and
losses related to Fortitude Re funds withheld assets - AIG
(573
)
(531
)
(667
)
Subtotal Investments AOCI - AIG
(2,511
)
(1,543
)
(2,205
)
Less: Deferred tax assets
4,313
3,975
3,489
AIG core operating shareholders' equity
(d)
$
36,326
$
34,464
$
37,427
Total common shares outstanding
(e)
688.8
630.3
606.1
As of period
end:
December 31, 2023
% Inc. (Dec.)
September 30, 2024
% Inc. (Dec.)
December 31,
2024
Book value per share (a÷e)
$
65.14
7.7
%
$
71.46
(1.8
)%
$
70.16
Adjusted book value per share (b÷e)
78.50
(6.0
)
73.90
(0.1
)
73.79
Tangible book value per share (c÷e)
59.60
7.3
65.37
(2.1
)
63.98
Core operating book value per share
(d÷e)
52.74
17.1
54.68
12.9
61.75
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliation of Return On
Equity
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2024
2023
2024
Actual or annualized net income (loss)
attributable to AIG common shareholders (a)
$
344
$
3,592
$
3,614
$
(1,426
)
Actual or annualized adjusted after-tax
income attributable to AIG common shareholders (b)
$
3,632
$
3,268
$
3,205
$
3,254
Average AIG adjusted common
shareholders' equity
Average AIG Common Shareholders' equity
(c)
$
42,183
$
43,780
$
41,930
$
44,051
Less: Average investments AOCI
(13,501
)
(1,874
)
(14,836
)
(5,132
)
Average adjusted common shareholders'
equity (d)
$
55,684
$
45,654
$
56,766
$
49,183
Average AIG tangible common
shareholders' equity
Average AIG Common Shareholders'
equity
$
42,183
$
43,780
$
41,930
$
44,051
Less: Average intangibles
3,800
3,789
4,070
3,797
Average AIG tangible common shareholders'
equity (e)
$
38,383
$
39,991
$
37,860
$
40,254
Average AIG core operating
shareholders' equity
Average AIG common shareholders'
equity
$
42,183
$
43,780
$
41,930
$
44,051
Less: Average AIG's ownership interest in
Corebridge
6,284
5,977
7,376
6,770
Less: Average investments AOCI - AIG
(3,642
)
(1,874
)
(3,254
)
(2,351
)
Less: Average deferred tax assets
4,144
3,732
4,322
3,998
Average AIG core operating shareholders'
equity (f)
$
35,397
$
35,945
$
33,486
$
35,634
ROE (a÷c)
0.8
%
8.2
%
8.6
%
(3.2
)
%
Adjusted return on equity (b÷d)
6.5
%
7.2
%
5.6
%
6.6
%
Return on tangible equity (b÷e)
9.5
%
8.2
%
8.5
%
8.1
%
Core operating ROE (b÷f)
10.3
%
9.1
%
9.6
%
9.1
%
Reconciliation of Total Debt to Total
Capital
Three Months Ended
December 31, 2024
Total financial and hybrid debt
$
8,726
Total capital
$
51,276
Less non-redeemable noncontrolling
interests
29
Less Investments AOCI
(2,205
)
Total adjusted capital
$
53,452
Hybrid - debt securities / Total
capital
1.2
%
Financial debt / Total capital
15.8
Total debt / Total capital
17.0
%
Total debt / Total adjusted capital
16.3
%
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliation of General Insurance
Underwriting Income
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2024
2023
2024
Underwriting income, as
reported
$
642
$
454
$
2,349
$
1,917
Validus Re and CRS impact
(32
)
—
(411
)
—
Underwriting income, comparable
basis
$
610
$
454
$
1,938
$
1,917
Reconciliation of General Insurance
Adjusted Pre-tax Income
Three Months Ended December
31,
2023
2024
Adjusted Pre-tax income, as
reported
$
1,437
$
1,233
Validus Re
(43
)
—
Adjusted Pre-tax income, comparable
basis
$
1,394
$
1,233
Reconciliation of Net Premiums Written
- Comparable Basis
Three Months Ended December
31,
North
General
America
International
Global
Global
2024
Insurance
Commercial
Commercial
Personal
Commercial
Net premiums written as reported in
U.S. dollars
$
6,077
$
2,224
$
2,089
$
1,764
$
4,313
Validus Re, CRS and AIG's Travel business
impact
(123
)
—
—
(123
)
—
Net premiums written on comparable
basis
$
5,954
$
2,224
$
2,089
$
1,641
$
4,313
2023
Net premiums written as reported in
U.S. dollars
$
5,755
$
2,111
$
1,911
$
1,733
$
4,022
Foreign exchange effect
35
—
25
10
25
Validus Re, CRS and AIG's Travel business
impact
(236
)
(72
)
10
(174
)
(62
)
Net premiums written on comparable
basis
$
5,554
$
2,039
$
1,946
$
1,569
$
3,985
Twelve Months Ended December
31,
North
General
America
International
Global
Global
2024
Insurance
Commercial
Commercial
Personal
Commercial
Net premiums written as reported in
U.S. dollars
$
23,902
$
8,452
$
8,364
$
7,086
$
16,816
Validus Re, CRS and AIG's Travel business
impact
(718
)
—
—
(718
)
—
Net premiums written on comparable
basis
$
23,184
$
8,452
$
8,364
$
6,368
$
16,816
2023
Net premiums written as reported in
U.S. dollars
$
26,719
$
11,432
$
8,168
$
7,119
$
19,600
Foreign exchange effect
(216
)
—
(17
)
(199
)
(17
)
Validus Re, CRS and AIG's Travel business
impact
(4,562
)
(3,708
)
(95
)
(759
)
(3,803
)
Net premiums written on comparable
basis
$
21,941
$
7,724
$
8,056
$
6,161
$
15,780
American International Group,
Inc.
Selected Financial Data and
Non-GAAP Reconciliation (continued)
($ in millions, except per
common share data)
Reconciliations of Accident Year Loss
and Accident Year Combined Ratios, as Adjusted
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2024
2023
2024
Total General
Insurance
Combined ratio
89.1
92.5
90.6
91.8
Catastrophe losses and reinstatement
premiums
(2.1
)
(5.5
)
(4.3
)
(5.0
)
Prior year development, net of reinsurance
and prior year premiums
0.9
1.6
1.4
1.4
Accident year combined ratio, as
adjusted
87.9
88.6
87.7
88.2
Validus Re and CRS impact
0.4
—
0.9
—
Accident year combined ratio, as adjusted,
comparable basis
88.3
88.6
88.6
88.2
Combined ratio
89.1
92.5
90.6
91.8
Validus Re and CRS impact
0.1
—
0.7
—
Combined ratio, comparable basis
89.2
92.5
91.3
91.8
North America
Commercial
Combined ratio
85.1
98.8
86.8
93.3
Catastrophe losses and reinstatement
premiums
(1.7
)
(14.1
)
(5.9
)
(9.7
)
Prior year development, net of reinsurance
and prior year premiums
0.9
(0.1
)
3.7
1.5
Accident year combined ratio, as
adjusted
84.3
84.6
84.6
85.1
Validus Re and CRS impact
(0.1
)
—
1.0
—
Accident year combined ratio, as adjusted,
comparable basis
84.2
84.6
85.6
85.1
Combined ratio
85.1
98.8
86.8
93.3
Validus Re and CRS impact
(0.7
)
—
0.3
—
Combined ratio, comparable basis
84.4
98.8
87.1
93.3
International
Commercial
Combined ratio
85.5
83.1
87.4
84.9
Catastrophe losses and reinstatement
premiums
(3.0
)
(0.1
)
(3.9
)
(2.9
)
Prior year development, net of reinsurance
and prior year premiums
(2.2
)
0.6
(1.8
)
1.0
Accident year combined ratio, as
adjusted
80.3
83.6
81.7
83.0
Validus Re impact
0.4
—
0.2
—
Accident year combined ratio, as adjusted,
comparable basis
80.7
83.6
81.9
83.0
Combined ratio
85.5
83.1
87.4
84.9
Validus Re impact
0.2
—
—
—
Combined ratio, comparable basis
85.7
83.1
87.4
84.9
Global
Personal
Combined ratio
98.8
95.4
100.1
98.0
Catastrophe losses and reinstatement
premiums
(1.5
)
(1.2
)
(2.6
)
(2.0
)
Prior year development, net of reinsurance
and prior year premiums
4.5
4.5
1.8
1.6
Accident year combined ratio, as
adjusted
101.8
98.7
99.3
97.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250211326237/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
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