AIG(AIG) - 2024 Q2 - Quarterly Results

Financial Performance - General Insurance net premiums written (NPW) were $6.9 billion, a decrease of 8$1.16, a 9% increase from the prior year quarter, and a 38% increase on a comparable basis[2]. - AIG returned almost $2.0 billion to shareholders, including$1.7 billion in stock repurchases and $261 million in dividends[1][11]. - Total net investment income for the second quarter was$990 million, an 18% increase from $837 million in the prior year quarter[10]. - AIG reported adjusted pre-tax income of$1,041 million for the three months ended June 30, 2023, compared to $1,288 million for the same period in 2022, reflecting a decrease of approximately 19.2$1,508 million, down from $2,010 million in the same period last year, representing a decline of about 25$1.15 per share, a decrease of 37.4% compared to $0.72 in the same period of 2023[61]. - Net income attributable to AIG common shareholders for the three months ended June 30, 2024, was$2.05 per share, compared to a loss of $6.02 per share in the same period of 2023[61]. - Adjusted after-tax income attributable to AIG common shareholders per diluted share for the three months ended June 30, 2024, was$1.06, an increase of 9.4% from $1.16 in the same period of 2023[61]. Insurance Operations - Record Commercial Lines new business reached$1.3 billion, an 18% year-over-year increase, with strong global retention[1]. - General Insurance combined ratio was 92.5%, an increase of 160 basis points year-over-year, while the accident year combined ratio improved by 40 basis points to 87.6%[1][2]. - North America Commercial Lines net premiums written decreased by 19% year-over-year to $3,410 million, but increased by 10$563 million, primarily due to positive rate changes in High Net Worth[17]. - The combined ratio for North America Personal Insurance improved by 760 basis points to 105.3%, driven by favorable development in prior year loss reserves[17]. - International Commercial Lines net premiums written increased by 3% year-over-year to $2,223 million, or 6$1,341 million, but grew by 3% on a comparable basis[20]. - The combined ratio for International Personal Insurance improved by 100 basis points to 97.0%, driven by lower catastrophe loss ratio and expense ratio[20]. Investment and Capital Management - The company executed nearly $5 billion in capital management actions in the first half of 2024, including$3.3 billion in share repurchases[4]. - Book value per share increased to $68.40 as of June 30, 2024, while adjusted book value per share was$72.78[11]. - AIG's total debt to total capital ratio was 18.1% as of June 30, 2024, indicating a strong balance sheet[11]. - Total AIG shareholders' equity increased from $42,454 million as of June 30, 2023, to$44,445 million as of June 30, 2024[65]. - Book value per share increased by 16.9% from $58.49 as of June 30, 2023, to$68.40 as of June 30, 2024[65]. - Average adjusted common shareholders' equity for the three months ended June 30, 2024, was $50,270 million, compared to$57,016 million in the same period of 2023[68]. - General Insurance Net Investment Income on an APTI basis was $725 million for the three months ended June 30, 2023, compared to$746 million for the same period in 2024[62]. - The company reported total net investment income of $775 million for the three months ended June 30, 2023, compared to$884 million for the same period in 2024[62]. - Net investment income on Fortitude Re funds withheld was reported at $383 million for the six months ended June 30, 2023, compared to$294 million in the same period of 2022, marking an increase of approximately 30.2%[58]. Risk Management and Regulatory Environment - AIG's reliance on third-party investment managers and the concentration in investment portfolios pose potential risks to financial performance[30]. - The effectiveness of AIG's enterprise risk management policies is crucial for adequately assessing risk and estimating related losses[30]. - The impact of regulatory changes and sanctions, particularly related to the Russia-Ukraine conflict, could significantly affect AIG's operations[30]. - AIG's total tax charge for the three months ended June 30, 2023, was $256 million, compared to$110 million for the same period in 2022, indicating an increase of approximately 132.7%[55]. - AIG's total tax benefits for the three months ended June 30, 2023, were $403 million, compared to$110 million for the same period in 2022, indicating an increase of approximately 267.3%[58]. Operational Efficiency - Other Operations adjusted pre-tax loss improved by $120 million year-over-year, primarily due to higher net investment income and lower interest expenses[22]. - Total net investment income increased by$89 million from the prior year quarter, driven by dividend income from Corebridge and higher yields on short-term investments[23]. - The general operating expense ratio on a comparable basis remained stable at 12.4% for both periods[73]. - Adjusted pre-tax income, excluding Crop Risk Services and Validus Re, was $430 million for the three months ended June 30, 2024, compared to$420 million in the same period last year[78]. - The accident year combined ratio, as adjusted, for North America - Personal Insurance improved to 101.8% from 107.1% year-over-year[76]. - Catastrophe losses and reinstatement premiums for the total general insurance segment increased to $(5.7) million for the three months ended June 30, 2024, compared to$(3.9) million in the prior year[73]. - The loss ratio for North America - Commercial Lines increased to 67.4% from 61.0% year-over-year[73]. - The combined ratio for International - Personal Insurance improved to 97.0% from 98.0% year-over-year[76]. - Adjusted pre-tax income, as reported, was $1,176 million for the three months ended June 30, 2024, down from$1,319 million in the prior year[79].