American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q2 2024 Earnings Presentation
33 slides from American International Group, Inc. New's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Financial Results Presentation
Second Quarter 2024 Financial Results Presentation July 31, 2024 Copyright ® 2024 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG.
Slide 2: Q2 2024 Earnings Key Themes
Q2 2024 Earnings Key Themes • Exceptional second quarter financial and operational performance across all of AIG • Delivered outstanding underwriting results, inclusive of “Against the backdrop of an catastrophes, with continued expense discipline increasingly uncertain global risk environment, AIG
Slide 3: Q2 2024 Financial Highlights
Quarterly Results GI Other Investments Capital & Deconsolidation Q2 2024 Financial Highlights Operating EPS* of $1.16 increased 9% from the prior year quarter and 38% on a comparable basis(1) Reported $6.9B 92.5% $(5.96) $68.40 8% 160 bps N.M. Not Meaningful vs 2Q23 vs 2Q23 vs 2Q23 due to Net Loss N
Slide 4: Diversified Business Mix
Quarterly Results GI Other Investments Capital & Deconsolidation Diversified Business Mix Balanced portfolio across both product lines and geography By Product By Geography Personal Insurance International 30% 57% Personal Property Lines Intl Personal 17% 16% 21% NA Comm'l 35% A&H $23.2B(1) $23.2B(1
Slide 5: General Insurance
Quarterly Results GI Other Investments Capital & Deconsolidation General Insurance AYCR* improved 40 basis points from prior year quarter or 170 basis points on a comparable basis(1) Key Financials Net Premiums Written ($M) ($ M) 2Q23 2Q23(1) 2Q24 $7,537 Total NPW (8)% / +7% Adj.(1) $6,933 $6,456 Ne
Slide 6: North America Commercial Lines
Quarterly Results GI Other Investments Capital & Deconsolidation North America Commercial Lines Strong double-digit net premiums written growth on a comparable basis(1) ($ M) 2Q23 2Q23 2Q24 Change Change • NPW increased 10%(1) from 2Q23 with Comp. Basis(1) Comp. Basis(1) growth across all major line
Slide 7: North America Personal Insurance
Quarterly Results GI Other Investments Capital & Deconsolidation North America Personal Insurance Continued underwriting improvement in High Net Worth ($ M) 2Q23 2Q24 Change • NPW increased 8% from 2Q23 primarily driven by High Net Worth, benefiting Net premiums written $563 $610 8% from rate increa
Slide 8: International Commercial Lines
Quarterly Results GI Other Investments Capital & Deconsolidation International Commercial Lines Continued AYCR, as adj.* improvement to a very strong 82.1% 2Q23 Change • NPW increased 6%(1) from 2Q23, driven ($ M) 2Q23 Comp. Basis(1) 2Q24 Change Comp. Basis(1) by Global Specialty, Property, Casualty
Slide 9: International Personal Insurance
Quarterly Results GI Other Investments Capital & Deconsolidation International Personal Insurance Underwriting income increased 42% from prior year quarter 2Q23 Change ($ M) 2Q23 Comp. Basis(1) 2Q24 Change Comp. Basis(1) • NPW increased 3%(1) from 2Q23 driven by growth in Personal Auto, Travel, and
Slide 10: Other Operations
Quarterly Results GI Other Investments Capital & Deconsolidation Other Operations Simplified financial results with Corebridge deconsolidation Other Operations Adjusted Pre-tax Loss (APTL) • Other Operations APTL improved ($ M) 2Q23 1Q24 2Q24 YoY QoQ $120M from prior year quarter Change Change prima
Slide 11: Other Noteworthy Items
Quarterly Results GI Other Investments Capital & Deconsolidation Other Noteworthy Items 2Q23 2Q24 EPS – EPS – ($ M, except per share amounts) APTI AATI(1) APTI AATI(1) Diluted(2) Diluted(2) Impact of excluding prior year divestitures: Validus Re and Crop Risk Services $(218) $(163) $(0.22) Expense I
Slide 12: Investment Portfolio
Quarterly Results GI Other Investments Capital & Deconsolidation Investment Portfolio Well-diversified investment portfolio with solid credit characteristics AIG Investment Portfolio ($ B) $0.7 • $92.2B high quality investment portfolio with aggregate asset Fixed Maturity Securities (FMS) - Availabl
Slide 13: Investment Income
Quarterly Results GI Other Investments Capital & Deconsolidation Investment Income Yield on FMS - AFS Bonds and Loans has benefited from higher global interest rate environment AIG Yields and Investment Income on FMS – AFS Bonds and Mortgage and Other Loans Receivable(1) ($ M) • 2Q24 yield(2) on FMS
Slide 14: Balance Sheet Strength
Quarterly Results GI Other Investments Capital & Deconsolidation Balance Sheet Strength Debt to capital ratio of 18.1% and strong insurance company capitalization Capital Structure ($ B) Capital Ratios • At June 30, 2024, total debt to total $54.3 June 30, 2024 capital ratio was 18.1%, reflecting th
Slide 15: Effect Of Held For Sale/Discontinued Operations On AIG Balance Sheet
Quarterly Results GI Other Investments Capital & Deconsolidation Effect Of Held For Sale/Discontinued Operations On AIG Balance Sheet at March 31, 2024 No change to Total Assets, Total Liabilities, Total Equity and Net Income as a result of held for sale accounting for Corebridge Held for Sale and (
Slide 16: Income Statement Effects Of Corebridge Deconsolidation
Quarterly Results GI Other Investments Capital & Deconsolidation Income Statement Effects Of Corebridge Deconsolidation AIG recognized a net loss from discontinued operations of $4.7B driven by a gain of $2.5B from Corebridge assets retained offset by the recognition of an accumulated other comprehe
Slide 17: Changes in Total and AIG Shareholders' Equity Due to Corebridge Deconsolidation
Quarterly Results GI Other Investments Capital & Deconsolidation Changes in Total and AIG Shareholders’ Equity Due to Corebridge Deconsolidation AIG Shareholders’ Equity increased $1.1B from March 31, 2024 to $44.4B Corebridge Deconsolidation Impact to AIG Shareholders’ Equity: $2.5B March 31, 2024
Slide 18: Changes In Capital Structure and Leverage From Deconsolidation
Quarterly Results GI Other Investments Capital & Deconsolidation Changes In Capital Structure and Leverage From Deconsolidation Walk From March 31, 2024 As Originally Reported Before Discontinued Operations Accounting to June 30, 2024 ($ B) $68.3 $2.5 CRBG $9.4 Debt $(1.4) $(5.7) AIG Debt/ This incl
Slide 19: AIG Shareholders' Equity
Quarterly Results GI Other Investments Capital & Deconsolidation AIG Shareholders’ Equity Walk From AIG Reported to Core Operating Shareholders’ Equity at June 30, 2024 ($ B) $2.8 $(4.1) Under the updated definition, $(8.6) only investments AOCI(1) is excluded $44.4 $47.3 $34.7 (1) Total AIG Less: I
Slide 20: Capital Management
Quarterly Results GI Other Investments Capital & Deconsolidation Capital Management Continued successful execution of balanced capital management Share Repurchase ($ M) AIG Total Debt to Total Capital Leverage Ratio(1) Aggregate share repurchases of $5.7B Achieved milestone of meeting leverage targe
Slide 21: Cautionary Statement
Cautionary Statement Following the deconsolidation of Corebridge, 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 th
Slide 22: Appendix: Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations
Appendix: Glossary of Non- GAAP Financial Measures and Non-GAAP Reconciliations Copyright ® 2024 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG.
Slide 23: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Financial Measures Throughout this presentation, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are “Non-GAAP financial measures” under Securit
Slide 24: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Financial Measures 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 ga
Slide 25: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Financial Measures 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 seg
Slide 26: Non-GAAP Reconciliations – Adjusted Pre-tax Income
Non-GAAP Reconciliations – Adjusted Pre-tax Income (in millions) Quarterly 2Q23 2Q24 Pre-tax income from continuing operations $886 $617 Adjustments to arrive at Adjusted pre-tax income Changes in the fair values of equity securities and AIG's investment in Corebridge (41) (59) Loss (gain) on exting
Slide 27: Non-GAAP Reconciliations – Adjusted After-tax Income
Non-GAAP Reconciliations – Adjusted After-tax Income (in millions) Quarterly 2Q23 2Q24 Net income (loss) $1,691 $(3,884) Noncontrolling interests (income) loss (3) (198) (93) Net income attributable to AIG - including discontinued operations $1,493 $(3,977) Dividends on preferred stock and preferred
Slide 28: Non-GAAP Reconciliations – Book Value Per Share
Non-GAAP Reconciliations – Book Value Per Share (in millions, except per share data) 2Q24 Book Value Per Share Total AIG shareholders' equity $44,445 Less: Preferred equity — Total AIG common shareholders' equity (a) 44,445 Less: Investments AOCI (3,460) Add: Cumulative unrealized gains and losses r
Slide 29: Non-GAAP Reconciliations – Return on Equity
Non-GAAP Reconciliations – Return on Equity Return on Equity (in millions) Quarterly Return On Equity Computations 2Q23 2Q24 Actual or Annualized net income attributable to AIG common shareholders (a) $5,940 $(15,908) Actual or Annualized adjusted after-tax income attributable to AIG common sharehol
Slide 30: Non-GAAP Reconciliations – Comparable Basis
Non-GAAP Reconciliations – Comparable Basis (in millions) Trailing Twelve Month Basis Crop Risk Services Comparable General Insurance As Reported and Validus Re Basis Net premiums written $23,662 $(426) $23,236 (dollars in millions) 2Q23 Foreign Crop Risk Services Comparable As Reported Exchange and
Slide 31: Non-GAAP Reconciliations – Comparable Basis (cont'd)
Non-GAAP Reconciliations – Comparable Basis (cont’d) (dollars in millions) 2Q23 Foreign Crop Risk Services Comparable As Reported Exchange and Validus Re Basis International Commercial Lines Net premiums written $2,223 $(30) $(40) $2,153 Net premiums earned 1,978 — (24) 1,954 Losses and loss adjustm
Slide 32: Comparable Basis and Accident Year Loss and Combined Ratios
Non-GAAP Reconciliations – Comparable Basis (con’t) and Accident Year Loss and Combined Ratios General Insurance Underlying Underwriting Income, excluding Catastrophes and Prior Year Development 2Q23 2Q24 Underwriting income, as reported $594 $430 Crop Risk Services and Validus Re underwriting incom
Slide 33: Accident Year Loss and Combined Ratios (cont'd)
Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios (cont’d) General Insurance – North America – Commercial Lines General Insurance – North America – Personal Insurance Quarterly Quarterly 2Q23 2Q24 2Q23 2Q24 Loss ratio 61.0% 67.4% Loss ratio 61.4% 57.2% Catastrophe losses and reinstat
American International Group — Q2 2024 Earnings Presentation on 6ix