Core Insights - American International Group, Inc. (AIG) reported fourth-quarter 2024 adjusted earnings per share of $1.30, exceeding the Zacks Consensus Estimate by 3.2% and showing a year-over-year improvement of 1.6% [1] - Adjusted operating revenues were $6.85 billion, a significant decline year over year, but still beating the consensus mark by 1.3% [2] - The fourth-quarter results were bolstered by new business production, strong retention, and reduced expenses, although lower premiums and high catastrophe charges partially offset these positives [2] Financial Performance - Total net investment income increased by 44.4% year over year to $1.3 billion, driven by higher income from alternative investments and dividends from Corebridge Financial, Inc. (CRBG), surpassing the consensus estimate by 50% [4] - Total benefits, losses, and expenses decreased by 6.9% year over year to $5.6 billion, attributed to lower general operating expenses and net gains from divestitures [5] - Adjusted return on equity improved by 70 basis points year over year to 7.2% [5] Segment Performance - General Insurance – North America Commercial segment reported net premiums written of $2.2 billion, a 5% increase year over year, benefiting from new business production and improved rate trends [6] - General Insurance – International Commercial segment saw net premiums written of $2.1 billion, up 9% year over year, aided by new business production [8] - General Insurance – Global Personal segment recorded net premiums written of $1.8 billion, a 2% increase year over year, with underwriting income improving nearly four-fold [10] Investment and Capital Management - AIG repurchased shares worth $1.8 billion and distributed dividends totaling $244 million [14] - As of December 31, 2024, AIG had a cash balance of $1.3 billion, total assets of $161.3 billion, and total equity of $42.6 billion, reflecting declines from the previous year [12] Full-Year Update - For the full year 2024, AIG's total revenues were $27.3 billion, down from $27.9 billion in 2023, while adjusted earnings improved to $4.95 per share from $4.42 [15]

Financial Data and Key Metrics Changes - General Insurance reported strong net premiums written of $6.1 billion, an increase of 7% year-over-year, with net premiums earned of $6 billion growing 6% year-over-year [15][24] - Adjusted after-tax income per share grew 5% year-over-year to $1.30 per share, with a calendar year combined ratio of 92.5% [16][24] - For the full year 2024, adjusted after-tax income was $3.3 billion or $4.95 per diluted share, an increase of 28% year-over-year [24][79] Business Line Data and Key Metrics Changes - North America Commercial net premiums written increased by 9% year-over-year, driven by strong new business growth of 17% [57][105] - International Commercial net premiums written increased by 7% year-over-year, with new business growth of 15% and excellent retention of 88% [57][99] - Global Personal net premiums written increased by 1% on a constant currency basis, with a 16% growth in the Global High Net Worth business [57][58] Market Data and Key Metrics Changes - The reinsurance market saw a significant reset on January 1, 2023, with property reinsurers focusing on upper layers with more remote return periods [28][29] - Insured loss from natural catastrophes in 2024 was approximately $145 billion, the sixth costliest on record, compared to an average of $140 billion over the last five years [31][34] - AIG's expected loss from the recent California wildfires is approximately $500 million before reinstatement premiums [37] Company Strategy and Development Direction - AIG realigned its General Insurance business into three segments: North America Commercial, International Commercial, and Global Personal [13][53] - The company executed significant strategic initiatives, including the deconsolidation of Corebridge Financial and the launch of AIG Underwriter Assist, a generative AI solution [18][22] - AIG aims to achieve a 10% plus core ROE for the full year 2025, focusing on profitable growth and capital allocation to attractive risk-adjusted returns [49][79] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the escalating risks and complicated environment due to recent wildfires in California, emphasizing the importance of resilience in navigating these challenges [10][11] - The company expressed optimism about achieving meaningful organic growth driven by the Global Commercial business and the benefits of the restructured reinsurance program [49][50] - Management confirmed guidance on achieving a 10% plus ROE, including the impact of the recent wildfires [85][88] Other Important Information - AIG returned $8.1 billion of capital to shareholders in 2024 through share repurchases and increased dividends [21][79] - The company reduced its debt to total capital ratio to 17% and ended the year with $7.7 billion of parent liquidity [21][48] - AIG's adjusted effective tax rate for the fourth quarter and full year was 24.6%, with expectations for 2025 to be in line with 2024 [78] Q&A Session Summary Question: Is the core ROE including the wildfire impact? - Yes, the 10% plus ROE includes the $500 million wildfire impact [85] Question: What areas is AIG targeting for organic growth? - AIG is focusing on risk-adjusted returns and has seen strong retention and new business growth across its portfolio [93][99] Question: How is AIG utilizing artificial intelligence in underwriting? - AIG is leveraging AI to improve data ingestion and provide underwriters with more qualified data in a timely manner, enhancing underwriting capabilities [113][117] Question: What is the timeline for improving the high net worth personal lines business? - AIG expects continued improvement in the combined ratio and loss ratio for the high net worth business, with growth anticipated in 2025 [120][123] Question: Are there any aspirational areas of business AIG is looking to enter? - AIG is largely done with divesting non-core businesses and is focused on maintaining a balanced portfolio while remaining disciplined in potential M&A opportunities [130][132]

Fourth Quarter and Full Year 2024 Financial Results Presentation February 12, 2025 Copyright ® 2025 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Earnings Key Themes "2024 was an outstanding year of accomplishments for AIG. We strengthened the company's capital structure, improved our financial performance, and achieved a major milestone with the deconsolidation of Corebridge Financial which enabl ...

Group 1 - American International Group (NYSE: AIG) shares have shown moderate performance over the past year, increasing by only 8% [1] - The stock has remained rangebound between $70 and $78 for most of the past year, indicating a lack of significant movement [1] - There is no indication that the stock is set to break out of its current range in the near future [1]

Core Insights - American International Group (AIG) reported a revenue of $6.85 billion for Q4 2024, marking a year-over-year decline of 46.1% and an EPS of $1.30 compared to $1.79 a year ago, exceeding the Zacks Consensus Estimate of $6.77 billion by 1.27% and delivering an EPS surprise of 3.17% [1] Financial Performance Metrics - Loss Ratio for Total General Insurance was 59.7%, slightly better than the average estimate of 60.1% [4] - Expense Ratio for Total General Insurance stood at 32.8%, higher than the estimated 31.9% [4] - Combined Ratio for Total General Insurance was 92.5%, compared to the average estimate of 92% [4] - Combined Ratio for General Insurance - North America - Commercial Lines was 98.8%, above the average estimate of 90.9% [4] - Combined Ratio for General Insurance - International - Commercial Lines was 83.1%, better than the average estimate of 86.5% [4] - Net premiums earned in General Insurance were $5.98 billion, exceeding the average estimate of $5.91 billion, with a year-over-year change of 1.1% [4] - Net investment income for General Insurance was $779 million, surpassing the average estimate of $759.90 million, but reflecting a year-over-year decline of 2% [4] - Net premiums written in General Insurance were $6.08 billion, compared to the average estimate of $6.68 billion, showing a year-over-year increase of 5.6% [4] - Revenue from Premiums was $5.97 billion, slightly above the average estimate of $5.93 billion, but down 29.5% year-over-year [4] - Net investment income was reported at $1.31 billion, exceeding the estimate of $875.43 million, but down 66.6% compared to the previous year [4] - Adjusted pre-tax loss from Other Operations was -$150 million, better than the average estimate of -$167.71 million [4] - Adjusted pre-tax income for General Insurance was $1.23 billion, slightly below the average estimate of $1.28 billion [4] Stock Performance - AIG shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Core Viewpoint - American International Group (AIG) reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, but down from $1.79 per share a year ago, indicating a mixed performance in earnings [1][2] Group 1: Earnings Performance - AIG's quarterly earnings surprise was 3.17%, with a previous quarter surprise of 8.85% [1] - Over the last four quarters, AIG has surpassed consensus EPS estimates three times [2] - The company posted revenues of $6.85 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.27%, but down from $12.72 billion year-over-year [2] Group 2: Stock Performance and Outlook - AIG shares have increased approximately 3.2% since the beginning of the year, slightly outperforming the S&P 500's gain of 3.1% [3] - The future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.57 on revenues of $6.73 billion, and for the current fiscal year, it is $6.45 on revenues of $27.8 billion [7] Group 3: Industry Context - The Zacks Industry Rank places the Insurance - Multi line sector in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Press Release Contacts: www.aig.com Quentin McMillan (Investors): quentin.mcmillan@aig.com Claire Talcott (Media): claire.talcott@aig.com AIG Reports Outstanding Fourth Quarter and Full Year 2024 Results Fourth Quarter 2024: Full Year 2024: NEW YORK, February 11, 2025 – 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 ...

American International Group, Inc. (AIG) is set to report its fourth-quarter 2024 results on Feb. 11, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) is currently pegged at $1.26 on revenues of $6.8 billion.See the Zacks Earnings Calendar to stay ahead of market-making news.The fourth-quarter earnings estimate has been revised downward over the past 60 days. The Zacks Consensus Estimate for quarterly revenues and earnings suggests year-over-year ...

In its upcoming report, American International Group (AIG) is predicted by Wall Street analysts to post quarterly earnings of $1.29 per share, reflecting a decline of 27.9% compared to the same period last year. Revenues are forecasted to be $6.77 billion, representing a year-over-year decrease of 46.8%.The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initi ...

The market expects American International Group (AIG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 11, 2025, might help the stock move higher if the ...