- Strong General Insurance net premiums written of $6.4
billion, a decrease of 1% on a reported basis, or an increase of 6%
on a comparable basis*†
- Global Commercial Lines net premiums written of $4.5
billion, a decrease of 2% on a reported basis, or an increase of 7%
on a comparable basis†, led by excellent growth in North America
Commercial Lines of 11%†
- Outstanding new business written in Global Commercial Lines
of $1.1 billion, growing 9% year-over-year
- Combined ratio was 92.6%; Accident year combined ratio, as
adjusted* (AYCR) was 88.3%
- Net income per diluted share was $0.71, compared to $2.81 in
the prior year quarter, which still included Corebridge’s
consolidated results
- Adjusted after-tax income* (AATI) per diluted share was
$1.23, an increase of 18% from the prior year quarter, or 31% on a
comparable basis†
- Returned approximately $1.8 billion of capital to
shareholders in the third quarter through $1.5 billion of stock
repurchases and $254 million of dividends
American International Group, Inc. (NYSE: AIG) today reported
financial results for the third quarter ended September 30,
2024.
AIG Chairman & Chief Executive Officer Peter Zaffino said:
“AIG delivered excellent third quarter financial results with
strong profitability and growth across our businesses highlighting
the quality of the underwriting portfolio and our ability to
deliver consistent earnings. The adjusted after-tax income per
diluted share was $1.23 for the third quarter, an 18% increase
year-over-year, or 31% on a comparable basis†. These results
demonstrate AIG’s ability to consistently deliver underwriting
excellence and capital management discipline and the successful
execution of our priorities.
“We continued to execute on our capital commitments with
repurchases of $1.5 billion of common shares and dividends of $254
million in the third quarter. Through the first nine months of
2024, we have returned over $6 billion of capital to shareholders,
reflecting our disciplined execution of our balanced capital
management plan. We ended the quarter with an excellent total debt
to capital ratio of 17.9% and parent liquidity of $4.2 billion.
“We achieved meaningful growth this quarter, led by our Global
Commercial business. Third quarter net premiums written grew 6%
year-over-year on a comparable basis†, driven by 7%† growth in
Global Commercial Lines, which maintained very strong retention of
88% while adding $1.1 billion of new business. North America
Commercial Lines achieved 11%† growth with new business growth of
22%, led by Lexington Insurance which grew 24%. Global Commercial
Lines pricing, which includes rate and exposure, increased 6%
excluding Workers’ Compensation and Financial Lines, largely in
line with loss cost trend.
“We marked another quarter of excellent underwriting results,
building on top of outstanding performance over the past few years.
The third quarter accident year combined ratio, as adjusted was
88.3%, demonstrating our underwriting discipline. The total
catastrophe-related charges were $417 million for the quarter,
representing 6.9 loss ratio points, and 4.9 points for the first
nine months of the year. In a challenging catastrophe environment,
this performance is remarkable, with industry insured losses
expected to top the 2023 total of $125 billion.
“Through 2024 and beyond, we remain incredibly focused on
underwriting excellence and executing on AIG Next. We have made
substantial progress over the last several years to improve the
financial strength of AIG. I want to thank our clients, partners
and stakeholders for their trust in us, which is a direct result of
the outstanding risk expertise and claims services provided by our
dedicated colleagues.”
* Refers to financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP
measures can be found in this news release under the heading
Comment on Regulation G and Non-GAAP Financial Measures. † Net
premiums written on a comparable basis reflects year-over-year
comparison on a constant dollar basis adjusted for the sale of
Validus Re in 2023. AATI, Adjusted pre-tax income (APTI),
underwriting income, net investment income and ratios on a
comparable basis reflect year-over-year comparisons adjusted for
the sale of Validus Re in 2023. Refer to pages 17, 20 and 21 for
more detail on selected financial measures.
FINANCIAL SUMMARY
Three Months Ended
September 30,
($ and shares in millions, except per
share amounts)
2023
2024
Income attributable to AIG common
shareholders from continuing operations
$
694
$
481
Net income per diluted share from
continuing operations
$
0.97
$
0.74
Net income attributable to AIG common
shareholders
$
2,020
$
459
Net income per diluted share attributable
to AIG common shareholders
$
2.81
$
0.71
Net investment income
$
856
$
973
Net investment income, APTI basis
792
897
Adjusted pre-tax income (loss)
$
1,089
$
1,067
General Insurance
1,367
1,210
Other Operations
(278
)
(143
)
Adjusted after-tax income attributable to
AIG common shareholders
$
746
$
798
Adjusted after-tax income per diluted
share attributable to AIG common shareholders
$
1.04
$
1.23
Weighted average common shares outstanding
- diluted
718.7
647.4
Return on equity
19.8
%
4.1
%
Adjusted return on equity
5.3
%
6.8
%
Return on tangible equity
8.1
%
7.8
%
Core operating return on equity
8.6
%
9.2
%
Book value per share
$
56.06
$
71.46
Adjusted book value per share
$
81.32
$
73.90
Tangible book value per share
$
50.69
$
65.37
Core operating book value per share
$
48.92
$
54.68
Common shares outstanding (in
millions)
704.6
630.3
For the third quarter of 2024, net income attributable to AIG
common shareholders was $459 million, or $0.71 per diluted common
share, compared to $2.0 billion, or $2.81 per diluted common share,
in the prior year quarter. 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 $798 million, or $1.23 per diluted common share, for
the third quarter of 2024, compared to $746 million, or $1.04 per
diluted common share, in the prior year quarter, reflecting higher
net investment income and improved results in Other Operations,
partially offset by loss of earnings due to the Validus Re
divestiture and lower underwriting income in General Insurance.
Total net investment income for the third quarter of 2024 was
$973 million, an increase of 14% from $856 million in the prior
year quarter, reflecting dividends received from Corebridge in the
third quarter of 2024, higher income on alternative investments,
equity and fixed maturity securities and lower investment expenses,
partially offset by lower income from 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 $897 million, an
increase of 13% from $792 million in the prior year quarter,
reflecting the same trends. In General Insurance, net investment
income was up 2% from the prior year quarter, which included $38
million in net investment income from Validus Re, which was sold on
November 1, 2023. On a comparable basis†, General Insurance net
investment income was up 8% from the prior year quarter.
In the third quarter of 2024, AIG returned approximately $1.8
billion to AIG shareholders through $1.5 billion of common stock
repurchases representing approximately 20 million shares, and $254
million of common stock dividends. AIG parent liquidity was $4.2
billion as of September 30, 2024.
Book value per share was $71.46 as of September 30, 2024, an
increase of 4.5% from the previous quarter. Adjusted book value per
share* was $73.90, an increase of 1.5% from the previous quarter.
Total debt to total capital ratio at September 30, 2024 was 17.9%
and total debt to total adjusted capital* ratio was 17.5%.
On November 4, 2024, the AIG Board of Directors declared a
quarterly cash dividend on AIG common stock of $0.40 per share. The
dividend is payable on December 30, 2024 to stockholders of record
at the close of business on December 16, 2024.
Corebridge Financial, Inc. (Corebridge) accounting treatment
after June 9, 2024: (i) AIG elected the fair value option and,
after that date, reflects its retained interest in Corebridge as an
equity method investment in other invested assets in AIG's
Condensed Consolidated Balance Sheets using Corebridge’s stock
price as its fair value, (ii) dividends received from Corebridge
and changes in its stock price are recognized in net investment
income in AIG’s Condensed Consolidated Financial Statements, and
(iii) AIG’s adjusted pre-tax income includes Corebridge dividends
and excludes changes in the fair value of Corebridge’s stock price.
The historical financial results of Corebridge, for all periods
presented, are reflected in AIG’s Condensed Consolidated Financial
Statements as discontinued operations in accordance with generally
accepted accounting principles in the United States of America
(U.S. GAAP) and are included in net income but not in AATI, a
non-GAAP measure.
GENERAL INSURANCE
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Gross premiums written
$
8,870
$
8,635
(3
)%
Net premiums written
$
6,462
$
6,380
(1
)%
Underwriting income (loss)
$
611
$
437
(28
)%
Net investment income, APTI basis
$
756
$
773
2
%
Adjusted pre-tax income
$
1,367
$
1,210
(11
)%
Underwriting ratios:
General Insurance (GI) CR
90.5
92.6
2.1
pts
GI Loss ratio
59.6
60.7
1.1
Less: impact on loss ratio
Catastrophe losses and reinstatement
premiums
(6.9
)
(6.9
)
—
Prior year development, net of reinsurance
and prior year premiums
2.7
2.6
(0.1
)
GI Accident year loss ratio, as
adjusted
55.4
56.4
1.0
GI Expense ratio
30.9
31.9
1.0
GI Accident year combined ratio, as
adjusted
86.3
88.3
2.0
pts
Comparable Basis†:
Net premiums written
$
6,018
$
6,380
6
%
General Insurance (GI) CR
90.2
92.6
2.4
pts
GI Accident year combined ratio, as
adjusted
86.9
88.3
1.4
pts
- General Insurance APTI of $1.2 billion decreased 11% from the
prior year quarter, largely due to the Validus Re divestiture in
2023, or 5% on a comparable basis†, driven by lower underwriting
income, partially offset by higher net investment income.
- Third quarter 2024 net premiums written (NPW) of $6.4 billion
declined 1% from the prior year quarter on a reported basis
primarily as a result of the Validus Re divestiture, but increased
6% on a comparable basis†, driven by 7% growth in Global Commercial
and 3% growth in Global Personal Insurance.
- Underwriting income was $437 million, a 28% decrease
year-over-year including Validus Re, or a 21% decrease on a
comparable basis†, due principally to higher catastrophe charges
and lower favorable prior year development (PYD), net of
reinsurance and prior year premiums.
- Total catastrophe-related charges were $417 million,
representing 6.9 loss ratio points, of which $324 million was in
North America with losses predominantly from windstorms and
hailstorms, and $93 million was in International.
- Favorable PYD, net of reinsurance and prior year premiums, was
$165 million, representing a 2.6 point loss ratio benefit. The
favorable PYD was largely driven by favorable development on
short-tail lines in Global Specialty and U.S. Property and
Specialty Risks which have performed extremely well and the
amortization benefit related to adverse development cover. The
strong level of favorable development in those lines was partially
offset by unfavorable development in U.S. Excess Casualty and
UK/Europe Casualty and Financial Lines.
- The combined ratio was 92.6%, compared to 90.2% in the prior
year quarter on a comparable basis†. The AYCR was 88.3%, compared
to 86.9% in the prior year quarter on a comparable basis†.
GENERAL INSURANCE - NORTH AMERICA COMMERCIAL LINES
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Net premiums written
$
2,544
$
2,445
(4
)%
Underwriting income (loss)
$
292
$
96
(67
)%
Underwriting ratios:
North America Commercial Lines CR
88.9
95.5
6.6
pts
North America Commercial Lines AYCR, as
adjusted
83.0
85.1
2.1
pts
Comparable Basis†:
Net premiums written
$
2,198
$
2,445
11
%
North America Commercial Lines CR
88.0
95.5
7.5
pts
North America Commercial Lines AYCR, as
adjusted
83.4
85.1
1.7
pts
- North America Commercial Lines NPW declined 4% from the prior
year quarter as a result of the 2023 divestitures, but increased
11% on a comparable basis†. The growth was led by Retail Casualty
and Lexington Insurance, benefiting from robust new business
production, which increased 22% year-over-year, strong retention
and continued positive rate trends.
- The combined ratio was 95.5% and the AYCR was 85.1% in the
third quarter. On a comparable basis†, the accident year loss
ratio, as adjusted* of 61.8% increased 250 basis points from the
prior year quarter. This was driven by a large closeout
transaction, which benefitted the overall combined ratio but
created a 70 basis point headwind within the loss ratio, as well as
a favorable actual vs. expected loss experience in the prior year
quarter driven by strong property rate increases that resulted in a
headwind of approximately 180 basis points in the year-over-year
comparison.
GENERAL INSURANCE - NORTH AMERICA PERSONAL INSURANCE
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Net premiums written
$
607
$
632
4
%
Underwriting income (loss)
$
(57
)
$
(59
)
(4
)%
Underwriting ratios:
North America Personal Insurance CR
113.0
111.5
(1.5
) pts
North America Personal Insurance AYCR, as
adjusted
108.4
103.9
(4.5
) pts
- North America Personal Insurance NPW grew 4% from the prior
year quarter, primarily driven by growth in High Net Worth,
resulting from positive rate change and new business
production.
- The combined ratio was 111.5%, compared to 113.0% in the prior
year quarter. The AYCR was 103.9%, compared to 108.4% in the prior
year. The improvement was driven by a lower AYLR, partially offset
by higher expense ratio.
GENERAL INSURANCE - INTERNATIONAL COMMERCIAL LINES
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Net premiums written
$
2,038
$
2,052
1
%
Underwriting income (loss)
$
339
$
320
(6
)%
Underwriting ratios:
International Commercial Lines CR
83.4
84.3
0.9
pts
International Commercial Lines AYCR, as
adjusted
79.7
83.4
3.7
pts
Comparable Basis†:
Net premiums written
$
1,996
$
2,052
3
%
International Commercial Lines CR
83.0
84.3
1.3
pts
International Commercial Lines AYCR, as
adjusted
79.7
83.4
3.7
pts
- International Commercial Lines NPW increased 1% from the prior
year quarter, or 3% on a comparable basis†, attributable to growth
in Global Specialty, Property and Talbot, primarily driven by
strong new business production and retention, partially offset by a
decrease in Financial Lines due to continued pricing pressure.
- The combined ratio was 84.3%, compared to 83.4% in the prior
year quarter. The AYCR was 83.4%, compared to 79.7% in the prior
year quarter.
GENERAL INSURANCE - INTERNATIONAL PERSONAL INSURANCE
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Net premiums written
$
1,273
$
1,251
(2
)%
Underwriting income (loss)
$
37
$
80
116
%
Underwriting ratios:
International Personal Insurance CR
97.2
93.7
(3.5
) pts
International Personal Insurance AYCR, as
adjusted
95.9
95.4
(0.5
) pts
Comparable Basis†:
Net premiums written
$
1,217
1,251
3
%
- International Personal Insurance NPW declined 2% from the prior
year quarter, but grew 3% on a comparable basis†, largely driven by
growth in Personal Auto.
- The combined ratio was 93.7%, compared to 97.2% in the prior
year quarter. The AYCR was 95.4%, compared to 95.9% in the prior
year quarter.
OTHER OPERATIONS
Three Months Ended
September 30,
($ in millions)
2023
2024
Change
Net investment income
$
45
$
125
178
%
General operating expenses
(179
)
(150
)
16
Interest expense
(133
)
(111
)
17
All other income (expenses)
(4
)
(5
)
(25
)
Adjusted pre-tax loss before consolidation
and eliminations
$
(271
)
$
(141
)
48
Total consolidation and eliminations
(7
)
(2
)
71
Adjusted pre-tax loss
$
(278
)
$
(143
)
49
%
- Other Operations adjusted pre-tax loss improved $135 million
from the prior year quarter, primarily due to higher net investment
income, lower general operating expenses (GOE) and lower interest
expenses.
- Net investment income increased $80 million from the prior year
quarter due to dividend income received from Corebridge in the
third quarter of 2024 and higher income on parent short-term
investments due to higher yields and higher balances.
- GOE improved $29 million from the prior year quarter or $40
million sequentially from the second quarter, reflecting the
benefits from AIG Next.
- AIG interest expense decreased $22 million, primarily driven by
debt reductions over the last year.
CONFERENCE CALL AIG will host a conference call tomorrow,
Tuesday, November 5, 2024 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 adverse developments related to 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, an economic slowdown or recession, any potential U.S.
federal government shutdown and geopolitical events or conflicts,
including the conflict between Russia and Ukraine and the conflict
in Israel and the surrounding areas;
- the occurrence of catastrophic events, both natural and
man-made, including the effects of climate change, geopolitical
events and conflicts and civil unrest;
- 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 restructuring initiatives
and potential cost-savings opportunities;
- our ability to effectively implement technological
advancements, including the use of artificial intelligence (AI),
and respond to competitors' AI and other technology
initiatives;
- the effectiveness of strategies to retain and recruit key
personnel and to implement effective succession plans;
- 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, including
Corebridge common stock;
- our reliance on third parties to provide certain business and
administrative services;
- availability of adequate reinsurance or access to reinsurance
on acceptable terms;
- 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;
- our ability to adequately assess risk and estimate related
losses as well as the effectiveness of our enterprise risk
management policies and procedures, including with respect to
business continuity and disaster recovery 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;
- the effects of sanctions, including those related to the
conflict in the Middle East and between Russia and Ukraine, and the
failure to comply with those sanctions;
- our ability to address evolving stakeholder expectations and
regulatory requirements with respect to environmental, social and
governance matters;
- changes to sources of or access to liquidity;
- changes in accounting principles and financial reporting
requirements or their applicability to us;
- the effects of changes in laws and regulations, including those
relating to cybersecurity and data privacy, and the regulation of
insurance in the U.S. and other countries in which we operate;
- 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 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations (MD&A) in our
Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2024 (which will be filed with the Securities and
Exchange Commission) (SEC) and Part II, Item 1A, Risk Factors in
our Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2024;
- Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A of
the 2023 Annual Report; 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 Third
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 business
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 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 adjusted 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 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 fair
value of investments that can fluctuate significantly from period
to period due to changes in market conditions. We also exclude only
the portion of DTA representing U.S. tax attributes related to net
operating loss carryforwards (NOLs) and 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 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 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
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 fair value of
investments that can fluctuate significantly from period to period
due to changes in market conditions. We also exclude only the
portion of DTA representing U.S. tax attributes related to NOLs and
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
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. This metric will provide 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 revenues exclude Net realized gains (losses),
income from non-operating litigation settlements (included in Other
income for GAAP purposes) and income from elimination of the
International reporting lag. Adjusted revenues is a GAAP measure
for our segments.
Adjusted Pre-tax Income (APTI) is derived by excluding
the items set forth below from income from continuing operations
before income tax. This definition is consistent across our
segments. These items generally fall into one or more of the
following broad categories: legacy matters having no relevance to
our current businesses or operating performance; adjustments to
enhance transparency to the underlying economics of transactions;
and measures that we believe to be common to the industry. APTI is
a GAAP measure for our segments. Excluded items include the
following:
- changes in the fair values of equity securities and AIG's
ownership interest in Corebridge;
- 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);
- 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:
- Loss ratio = Loss and loss adjustment expenses incurred ÷ Net
premiums earned (NPE)
- Acquisition ratio = Total acquisition expenses ÷ NPE
- General operating expense ratio = General operating expenses ÷
NPE
- Expense ratio = Acquisition ratio + General operating expense
ratio
- Combined ratio = Loss ratio + Expense ratio
- CATs and reinstatement premiums ratio = [Loss and loss
adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement
premiums related to catastrophes] – Loss ratio
- 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]
- Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR
ex-CAT + Expense ratio
- 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 approximately 190 countries
and jurisdictions protect their assets and manage risks through AIG
operations and 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 September
30,
2023
2024
Total Tax
Non-
Total Tax
Non-
(Benefit)
controlling
After
(Benefits)
controlling
After
Pre-tax
Charge
Interests(c)
Tax
Pre-tax
Charge
Interests(c)
Tax
Pre-tax income/net income, including
noncontrolling interests
$
1,100
$
399
$
—
$
2,747
$
649
$
168
$
—
$
457
Noncontrolling interests
—
—
(720
)
(720
)
—
—
2
2
Pre-tax income/net income attributable
to AIG
1,100
399
(720
)
2,027
649
168
2
459
Dividends on preferred stock and preferred
stock redemption premiums
7
—
Net income attributable to AIG common
shareholders
2,020
459
Adjustments:
Changes in uncertain tax positions and
other tax adjustments
(57
)
—
57
3
—
(3
)
Deferred income tax valuation allowance
(releases) charges
(5
)
—
5
9
—
(9
)
Changes in the fair values of equity
securities and AIG's investment in Corebridge
(31
)
(6
)
—
(25
)
(25
)
(5
)
—
(20
)
Loss on extinguishment of debt and
preferred stock redemption premiums
21
4
—
17
—
—
—
—
Net investment income on Fortitude Re
funds withheld assets
(29
)
(6
)
—
(23
)
(51
)
(11
)
—
(40
)
Net realized losses on Fortitude Re funds
withheld assets
3
—
—
3
18
4
—
14
Net realized gains on Fortitude Re funds
withheld embedded derivative
(57
)
(12
)
—
(45
)
157
33
—
124
Net realized (gains) losses(a)
190
42
—
148
(7
)
(27
)
—
20
(Income) loss from discontinued
operations
(2,046
)
24
Net (gain) loss on divestitures and
other
(101
)
(21
)
—
(80
)
8
28
—
(20
)
Non-operating litigation reserves and
settlements
—
—
—
—
—
—
—
—
Unfavorable (favorable) prior year
development and related amortization changes ceded under
retroactive reinsurance agreements
(75
)
(16
)
—
(59
)
126
27
—
99
Net loss reserve discount charge
5
1
—
4
29
6
—
23
Pension expense related to lump sum
payments to former employees
8
2
—
6
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
2
—
—
2
22
5
—
17
Restructuring and other costs(d)
49
10
—
39
137
28
—
109
Non-recurring costs related to regulatory
or accounting changes
4
1
—
3
4
1
—
3
Noncontrolling interests(c)
720
720
(2
)
(2
)
Adjusted pre-tax income/Adjusted
after-tax income attributable to AIG common shareholders
$
1,089
$
336
$
—
$
746
$
1,067
$
269
$
—
$
798
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
Nine Months Ended September
30,
2023
2024
Total Tax
Non-
Total Tax
Non-
(Benefits)
controlling
After
(Benefits)
controlling
After
Pre-tax
Charge
Interests(c)
Tax
Pre-tax
Charge
Interests(c)
Tax
Pre-tax income/net income (loss),
including noncontrolling interests
$
2,388
$
509
$
—
$
4,351
$
2,324
$
571
$
—
$
(1,827
)
Noncontrolling interests
—
—
(801
)
(801
)
—
—
(475
)
(475
)
Pre-tax income/net income (loss)
attributable to AIG
2,388
509
(801
)
3,550
2,324
571
(475
)
(2,302
)
Dividends on preferred stock and preferred
stock redemption premiums
22
22
Net income (loss) attributable to AIG
common shareholders
3,528
(2,324
)
Adjustments:
Changes in uncertain tax positions and
other tax adjustments
—
175
—
(175
)
—
8
—
(8
)
Deferred income tax valuation allowance
(releases) charges
—
(51
)
—
51
—
15
—
(15
)
Changes in the fair values of equity
securities and AIG's investment in Corebridge
(93
)
(19
)
—
(74
)
(172
)
(36
)
—
(136
)
Loss on extinguishment of debt and
preferred stock redemption premiums
21
4
—
17
1
—
—
16
Net investment income on Fortitude Re
funds withheld assets
(106
)
(22
)
—
(84
)
(123
)
(26
)
—
(97
)
Net realized losses on Fortitude Re funds
withheld assets
64
13
—
51
38
8
—
30
Net realized (gains) losses on Fortitude
Re funds withheld embedded derivative
25
5
—
20
158
33
—
125
Net realized losses(a)
573
131
—
442
234
28
—
206
(Income) loss from discontinued
operations
(2,472
)
3,580
Net gain on divestitures and other
(89
)
(19
)
—
(70
)
(94
)
12
—
(106
)
Non-operating litigation reserves and
settlements
—
—
—
—
—
—
—
—
Unfavorable (favorable) prior year
development and related amortization changes ceded under
retroactive reinsurance agreements
(112
)
(24
)
—
(88
)
66
14
—
52
Net loss reserve discount charge
85
18
—
67
131
27
—
104
Pension expense related to lump sum
payments to former employees
62
13
—
49
—
—
—
—
Integration and transaction costs
associated with acquiring or divesting businesses
10
2
—
8
37
8
—
29
Restructuring and other costs(d)
264
55
—
209
630
132
—
498
Non-recurring costs related to regulatory
or accounting changes
19
4
—
15
15
3
—
12
Net impact from elimination of
international reporting lag(b)
(12
)
(3
)
—
(9
)
—
—
—
—
Noncontrolling interests(c)
801
801
475
475
Adjusted pre-tax income/Adjusted
after-tax income attributable to AIG common shareholders
$
3,099
$
791
$
—
$
2,286
$
3,245
$
797
$
—
$
2,441
(a)
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.
(b)
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.
(c)
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.
(d)
In the three and nine months
ended September 30, 2024, restructuring and other costs increased
primarily as a result of employee-related costs, including
severance, and real estate impairment charges.
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
September 30,
Nine Months Ended
September 30,
Earnings per common share:
2023
2024
% Inc. (Dec.)
2023
2024
% Inc. (Dec.)
Basic
Income from continuing operations
$
0.97
$
0.75
(22.7
)%
$
2.56
$
2.62
2.3
%
Income (loss) from discontinued
operations
1.86
(0.03
)
NM
2.30
(6.13
)
NM
Net income (loss) attributable to AIG
common shareholders
$
2.83
$
0.72
(74.6
)
$
4.86
$
(3.51
)
NM
Diluted
Income from continuing operations
$
0.97
$
0.74
(23.7
)
$
2.54
$
2.59
2.0
Income (loss) from discontinued
operations
1.84
(0.03
)
NM
2.29
(6.07
)
NM
Net income (loss) attributable to AIG
common shareholders
$
2.81
$
0.71
(74.7
)
$
4.83
$
(3.48
)
NM
Adjusted after-tax income attributable
to AIG common shareholders per diluted share
$
1.04
$
1.23
18.3
%
$
3.13
$
3.66
16.9
%
Weighted average shares
outstanding:
Basic
712.6
641.6
725.6
661.7
Diluted
718.7
647.4
731.0
667.4
Reconciliation of Adjusted After-tax
Income, Comparable Basis
Three Months Ended
September 30,
2023
2024
Adjusted after-tax income attributable
to AIG common shareholders, as reported
$
746
$
798
Validus Re
(68
)
—
Adjusted after-tax income attributable
to AIG common shareholders, comparable basis
678
798
Adjusted after-tax income attributable
to AIG common shareholders per diluted share, comparable
basis
0.94
1.23
Reconciliation of Net Investment
Income
Three Months Ended
September 30,
2023
2024
Net Investment Income per Consolidated
Statements of Operations
$
856
$
973
Changes in the fair values of equity
securities and AIG's investment in Corebridge
(31
)
(25
)
Net investment income on Fortitude Re
funds withheld assets
(29
)
(51
)
Net realized gains (losses) related to
economic hedges and other
(4
)
—
Total Net Investment Income - APTI
Basis
$
792
$
897
General Insurance Net Investment
Income, APTI basis
$
756
$
773
Validus Re
(38
)
—
General Insurance Net Investment
Income, APTI basis, comparable basis
$
718
$
773
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:
September 30,
2023
June 30,
2024
September 30,
2024
Total AIG shareholders' equity
$
39,984
$
44,445
$
45,039
Less: Preferred equity
485
—
—
Total AIG common shareholders' equity
(a)
39,499
44,445
45,039
Less: Investments AOCI
(20,771
)
(3,460
)
(2,074
)
Add: Cumulative unrealized gains and
losses related to Fortitude Re Funds withheld assets
(2,973
)
(615
)
(531
)
Subtotal Investments AOCI
(17,798
)
(2,845
)
(1,543
)
Total adjusted common shareholders' equity
(b)
$
57,297
$
47,290
$
46,582
Less: Intangible assets:
Goodwill
3,385
3,407
3,453
Value of distribution channel acquired
149
136
132
Other intangibles
249
249
249
Total intangible assets
3,783
3,792
3,834
Total adjusted tangible common
shareholders' equity (c)
$
35,716
$
40,653
$
41,205
Less: AIG's ownership interest in
Corebridge
5,829
8,567
8,143
Less: Investments related AOCI - AIG
(5,490
)
(3,460
)
(2,074
)
Add: Cumulative unrealized gains and
losses related to Fortitude Re funds withheld assets - AIG
(717
)
(615
)
(531
)
Subtotal Investments AOCI - AIG
(4,773
)
(2,845
)
(1,543
)
Less: Deferred tax assets
3,974
4,059
3,975
AIG core operating shareholders' equity
(d)
$
34,469
$
34,664
$
34,464
Total common shares outstanding
(e)
704.6
649.8
630.3
As of period
end:
September 30,
2023
% Inc.
(Dec.)
June 30,
2024
% Inc.
(Dec.)
September 30,
2024
Book value per share (a÷e)
$
56.06
27.5
%
$
68.40
4.5
%
$
71.46
Adjusted book value per share (b÷e)
81.32
(9.1
)
72.78
1.5
73.90
Adjusted tangible book value per share
(c÷e)
50.69
29.0
62.56
4.5
65.37
Core operating book value per share
(d÷e)
48.92
11.8
53.35
2.5
54.68
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
September 30,
2023
2024
Actual or annualized net income (loss)
attributable to AIG common shareholders (a)
$
8,080
$
1,836
Actual or annualized adjusted after-tax
income attributable to AIG common shareholders (b)
$
2,984
$
3,192
Average AIG adjusted common
shareholders' equity
Average AIG Common Shareholders' equity
(c)
$
40,734
$
44,742
Less: Average investments AOCI
(16,091
)
(2,194
)
Average adjusted common shareholders'
equity (d)
$
56,825
$
46,936
Average AIG tangible common
shareholders' equity
Average AIG Common Shareholders'
equity
$
40,734
$
44,742
Less: Average intangibles
3,824
3,813
Average AIG tangible common shareholders'
equity (e)
$
36,910
$
40,929
Average AIG core operating
shareholders' equity
Average AIG common shareholders'
equity
$
40,734
$
44,742
Less: Average AIG's ownership interest in
Corebridge
6,591
8,355
Less: Average investments AOCI - AIG
(4,495
)
(2,194
)
Less: Average deferred tax assets
4,119
4,017
Average AIG core operating shareholders'
equity (f)
$
34,519
$
34,564
ROE (a÷c)
19.8
%
4.1
%
Adjusted return on equity (b÷d)
5.3
%
6.8
%
Return on tangible equity (b÷e)
8.1
%
7.8
%
Core operating ROE (b÷f)
8.6
%
9.2
%
Reconciliation of Total Debt to Total
Capital
Three Months Ended
September 30, 2024
Total financial and hybrid debt
$
9,854
Total capital
$
54,927
Less non-redeemable noncontrolling
interests
34
Less Investments AOCI
(1,543
)
Total adjusted capital
$
56,436
Hybrid - debt securities / Total
capital
1.7
%
Financial debt / Total capital
16.2
Total debt / Total capital
17.9
%
Total debt / Total adjusted capital
17.5
%
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
September 30,
2023
2024
Underwriting income, as
reported
$
611
$
437
Validus Re
(60
)
—
Underwriting income, excluding Validus
Re
$
551
$
437
Reconciliation of General Insurance
Adjusted Pre-tax Income
Three Months Ended
September 30,
2023
2024
Adjusted Pre-tax income, as
reported
$
1,367
$
1,210
Validus Re
(98
)
—
Adjusted Pre-tax income, comparable
basis
$
1,269
$
1,210
Reconciliation of Net Premiums Written - Comparable Basis
Three Months Ended September
30, 2024
North
Global -
Global -
America -
International
General
Commercial
Personal
Commercial
Commercial
Personal
Insurance
Lines
Insurance
Lines
Lines
Insurance
Change in net premiums written
Increase (decrease) as reported in U.S.
dollars
(1.3
)%
(1.9
)%
0.2
%
(3.9
)%
0.7
%
(1.7
)%
Foreign exchange effect
1.3
0.5
3.0
0.1
1.0
4.5
Validus Re impact
6.0
8.6
—
15.0
1.1
—
Increase (decrease) on comparable
basis
6.0
%
7.2
%
3.2
%
11.2
%
2.8
%
2.8
%
Net premiums written as reported in
U.S. dollars
$
6,462
$
2,544
$
2,038
$
1,273
Foreign exchange effect
(79
)
(3
)
(20
)
(56
)
Validus Re impact
(365
)
(343
)
(22
)
—
Net premiums written on comparable
basis
$
6,018
$
2,198
$
1,996
$
1,217
Reconciliations of Accident Year Loss
and Accident Year Combined Ratios, as Adjusted
Three Months Ended
September 30,
2023
2024
Total General Insurance
Combined ratio
90.5
92.6
Catastrophe losses and reinstatement
premiums
(6.9
)
(6.9
)
Prior year development, net of reinsurance
and prior year premiums
2.7
2.6
Accident year combined ratio, as
adjusted
86.3
88.3
Validus Re impact
0.6
—
Accident year combined ratio, as adjusted,
comparable basis
86.9
88.3
Combined ratio
90.5
92.6
Validus Re impact
(0.3
)
—
Combined ratio, comparable basis
90.2
92.6
North America - Commercial
Lines
Loss ratio
63.7
72.2
Catastrophe losses and reinstatement
premiums
(11.7
)
(13.3
)
Prior year development, net of reinsurance
and prior year premiums
5.8
2.9
Accident year loss ratio, as adjusted
57.8
61.8
Validus Re impact
1.5
—
Accident year loss ratio, as adjusted,
comparable basis
59.3
61.8
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
September 30,
2023
2024
North America -
Commercial Lines
Combined ratio
88.9
95.5
Catastrophe losses and reinstatement
premiums
(11.7
)
(13.3
)
Prior year development, net of reinsurance
and prior year premiums
5.8
2.9
Accident year combined ratio, as
adjusted
83.0
85.1
Validus Re impact
0.4
—
Accident year combined ratio, as adjusted,
comparable basis
83.4
85.1
Combined ratio
88.9
95.5
Validus Re impact
(0.9
)
—
Combined ratio, comparable basis
88.0
95.5
North America -
Personal Insurance
Loss ratio
67.0
61.2
Catastrophe losses and reinstatement
premiums
(9.7
)
(8.0
)
Prior year development, net of reinsurance
and prior year premiums
5.1
0.4
Accident year loss ratio, as adjusted
62.4
53.6
Combined ratio
113.0
111.5
Catastrophe losses and reinstatement
premiums
(9.7
)
(8.0
)
Prior year development, net of reinsurance
and prior year premiums
5.1
0.4
Accident year combined ratio, as
adjusted
108.4
103.9
International -
Commercial Lines
Combined ratio
83.4
84.3
Catastrophe losses and reinstatement
premiums
(3.3
)
(4.1
)
Prior year development, net of reinsurance
and prior year premiums
(0.4
)
3.2
Accident year combined ratio, as
adjusted
79.7
83.4
Validus Re impact
—
—
Accident year combined ratio, as adjusted,
comparable basis
79.7
83.4
Combined ratio
83.4
84.3
Validus Re impact
(0.4
)
—
Combined ratio, comparable basis
83.0
84.3
International -
Personal Insurance
Combined ratio
97.2
93.7
Catastrophe losses and reinstatement
premiums
(2.1
)
(0.8
)
Prior year development, net of reinsurance
and prior year premiums
0.8
2.5
Accident year combined ratio, as
adjusted
95.9
95.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104868342/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
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