Q4 2024 American International Group Inc Earnings Call Transcript
Key Points
- American International Group Inc (AIG) reported strong net premiums written of $6.1 billion in the fourth quarter, a 7% increase year-over-year, driven by 8% growth in global commercial lines.
- The company achieved a 5% year-over-year growth in adjusted after-tax income per share, reaching $1.30 per share.
- AIG successfully executed significant strategic and operational initiatives in 2024, including the deconsolidation of Corebridge Financial and the sale of non-core businesses.
- The company achieved $450 million in run rate savings through the AIG Next program, with further benefits expected in 2025.
- AIG returned $8.1 billion of capital to shareholders in 2024, reducing shares outstanding by 12% and increasing the quarterly dividend per share by 11%.
- AIG faced higher catastrophe losses in the fourth quarter, which impacted general insurance underwriting income, resulting in a $156 million decrease from the prior year quarter.
- The sale of the global personal travel and assistance business is expected to have a negative impact on the global personal segment in 2025, removing approximately $720 million of net premiums written.
- The expense ratio has been running higher than expected, despite improvements in the loss ratio.
- AIG's adjusted book value per share decreased by 6% from year-end 2023, primarily due to the impact of Corebridge deconsolidation.
- The company anticipates continued pressure on its private equity portfolio due to the current macro environment, which may affect investment income.
Good day and welcome to AIG's fourth quarter and full year 2024 financial results conference call. This conference is being recorded.
Now at this time, I would like to turn the conference over to Quentin McMillan. Please go ahead.
Thanks very much, Michelle, and good morning. Today's remarks may include forward-looking statements which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based on management's current expectations. AIG's filings with the SEC provide details on important factors that could cause actual results or events to differ materially.
Except as required by applicable securities laws, AIG is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change. Today's remarks may also refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP
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