American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q1 2024 Earnings Presentation
33 slides from American International Group, Inc. New's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Financial Results Presentation
First Quarter 2024 Financial Results Presentation May 2, 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: First Quarter Operating EPS of $1.77 Increased 9% From Prior Year Quarter
Group Performance Capital 1Q’24 Results GI L&R Other Investments First Quarter Operating EPS* of $1.77 Increased 9% From Prior Year Quarter And Is a Strong Start to 2024 General Insurance After-Tax Income Book Value per Return on Combined Ratio per Diluted Share Common Share Common Equity(1) Calenda
Slide 3: Continued Execution of Balanced Capital Management Actions
Group Performance Capital 1Q’24 Results GI L&R Other Investments Continued Execution of Balanced Capital Management Actions Share Repurchase Highlights (in millions, except for per share data) 1Q23 2Q23 3Q23 4Q23 1Q24 • Aggregate share repurchases of $4.7B over the last five quarters, Share Repurcha
Slide 4: Balance Sheet Strength: Strong Insurance Company Capitalization and Reduced Debt Leverage
Group Performance Capital 1Q’24 Results GI L&R Other Investments Balance Sheet Strength: Strong Insurance Company Capitalization and Reduced Debt Leverage Capital Structure ($B) Capital Ratios $71.0 Dec. 31, Mar. 31, • During the quarter, AIG redeemed Change $68.3 2023 2024 all 20,000 outstanding sh
Slide 5: Focused on Achieving 10%-Plus Adjusted ROCE
Group Performance Capital 1Q’24 Results GI L&R Other Investments Focused on Achieving 10%-Plus Adjusted ROCE* Key Drivers for Delivering 10%-Plus Adjusted ROCE* Path to 10%-Plus Adjusted ROCE* ~100 - 200 bps Sustained and Improved Underwriting Profitability ~300 - 400 bps Continue the culture of opt
Slide 6: Strong Growth in Adjusted Pre-Tax Income and Adjusted Return on Common Equity in Both Businesses
Group Performance Capital 1Q’24 Results GI L&R Other Investments Strong Growth in Adjusted Pre-Tax Income and Adjusted Return on Common Equity in Both Businesses(1) General Insurance Life and Retirement(1) Net Premiums Written (NPW) ($M) Premiums and Deposits* ($M) $6,965 +2% $10,448 $10,671 $4,495
Slide 7: General Insurance: Underwriting Income of $596M As Reported Increased 19%
Group Performance Capital 1Q’24 Results GI L&R Other Investments General Insurance: Underwriting Income of $596M As Reported Increased 19% from Prior Year and Rose 67% Excluding 2023 Divested Businesses Key Financials Net Premiums Written ($M) ($M) 1Q23 1Q24 Change $6,965 Net premiums written $6,965
Slide 8: General Insurance: 6th Consecutive Year of Quarterly AYCR Improvement
Group Performance Capital 1Q’24 Results GI L&R Other Investments General Insurance: 6th Consecutive Year of Quarterly AYCR* Improvement, Driven by Commercial Lines; 10th Consecutive Quarter of Sub-90% AYCR* Calendar Year Combined Ratio Accident Year Combined Ratio, As Adjusted* 103.8% (14.0) pts (11
Slide 9: General Insurance North America: Continued AYCR Improvement Driven by Personal Insurance
Group Performance Capital 1Q’24 Results GI L&R Other Investments General Insurance North America: Continued AYCR* Improvement Driven by Personal Insurance Key Financials North America Net Premiums Written ($M) • NA Commercial Lines NPW increased ($M) 1Q23 1Q24 Change $3,680 4%(1) from 1Q23 driven by
Slide 10: General Insurance International: Calendar Year Combined Ratio Improved 5.1 Points
Group Performance Capital 1Q’24 Results GI L&R Other Investments General Insurance International: Calendar Year Combined Ratio Improved 5.1 Points From the Prior Year Driven By Commercial Lines Key Financials International Net Premiums Written ($M) • Int’l Commercial Lines NPW decreased ($M) 1Q23 1Q
Slide 11: Life & Retirement: Growth in Net Investment Income Drives 12% Growth in APTI
Group Performance Capital 1Q’24 Results GI L&R Other Investments Life & Retirement: Growth in Net Investment Income Drives 12% Growth in APTI, Before the Impact of Noncontrolling Interests on AIG AATI* Adjusted Pre-tax Income (APTI) Return on Adjusted Segment Common Equity*(1) 1Q23 1Q24 • L&R result
Slide 12: Individual Retirement & Group Retirement: Strong Base Investment Spread and Higher Fee Income
Group Performance Capital 1Q’24 Results GI L&R Other Investments Individual Retirement & Group Retirement: Strong Base Investment Spread and Higher Fee Income Individual Retirement • Individual Retirement APTI up 17% Key Figures Investment Spreads driven by higher base spread income 1Q23 4Q23 1Q24 a
Slide 13: Life Insurance: Continued Premiums and Deposits Growth; Institutional Markets: Strong New Production
Group Performance Capital 1Q’24 Results GI L&R Other Investments Life Insurance: Continued Premiums and Deposits* Growth Institutional Markets: Strong New Production Life Insurance • Life Insurance APTI decreased from Key Figures New Business Sales Mix 1Q23 primarily due to non-recurring reinsurance
Slide 14: Other Operations: Improved Corporate and Other Excluding Corebridge Results
Group Performance Capital 1Q’24 Results GI L&R Other Investments Other Operations: Improved Corporate and Other Excluding Corebridge Results Noncontrolling Interest Expense: Increased due to Reduction in Corebridge Ownership Other Operations Adjusted Pre-tax Loss (APTL) • Corporate and Other APTL ex
Slide 15: Other Noteworthy Items
Group Performance Capital 1Q’24 Results GI L&R Other Investments Other Noteworthy Items 1Q23 1Q24 EPS – EPS – ($M, except per share amounts) APTI AATI(1) APTI AATI(1) Diluted(2) Diluted(2) Expense Items: Catastrophe-related losses, net of reinsurance $265 $209 $0.28 $107 $85 $0.12 Reinstatement prem
Slide 16: Well Diversified Investment Portfolio with Solid Credit Characteristics
Group Performance Capital 1Q’24 Results GI L&R Other Investments Well Diversified Investment Portfolio with Solid Credit Characteristics Investment Portfolio ($B) Investment Portfolio Composition by Segment(1) ($B) AIG General Insurance Life and Retirement Other Ops • $294B high quality investment p
Slide 17: Continued Yield Improvement in FMS - AFS Bonds and Loans Portfolios
Group Performance Capital 1Q’24 Results GI L&R Other Investments Continued Yield Improvement in FMS - AFS Bonds and Loans Portfolios from Higher New Money Rates Yields and Investment Income on FMS – AFS Bonds and Mortgage and Other Loans Receivable(1) ($M) $3,254 $3,313 • Yield(2) on FMS – AFS Bonds
Slide 18: Cautionary Statement
Cautionary Statement Certain statements in this presentation and other publicly available documents may include, and members of AIG 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-lookin
Slide 19: 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 20: 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 21: 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
Slide 22: 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), changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment inc
Slide 23: Non-GAAP Reconciliations – Adjusted Pre-tax Income
Non-GAAP Reconciliations – Adjusted Pre-tax Income (in millions) Quarterly 1Q23 1Q24 Pre-tax income (loss) from continuing operations $(231) $2,051 Adjustments to arrive at Adjusted pre-tax income Changes in fair value of securities used to hedge guaranteed living benefits 3 2 Change in the fair val
Slide 24: Non-GAAP Reconciliations – Adjusted After-tax Income
Non-GAAP Reconciliations – Adjusted After-tax Income (in millions) Quarterly 1Q23 1Q24 After-tax net income (loss), including noncontrolling interests $(87) $1,600 Noncontrolling interests (income) loss 117 (384) Net income attributable to AIG $30 $1,216 Dividends on preferred stock and preferred st
Slide 25: Non-GAAP Reconciliations – Book Value Per Common Share and Total Debt and Preferred Stock
Non-GAAP Reconciliations – Book Value Per Common Share and Total Debt and Preferred Stock to Total Capital Ratio Book Value per Common Share (in millions, except per common share data) Book Value Per Common Share 1Q23 2Q23 3Q23 4Q23 1Q24 Total AIG shareholders' equity $43,317 $42,454 $39,984 $45,351
Slide 26: Non-GAAP Reconciliations – Return on Common Equity
Non-GAAP Reconciliations – Return on Common Equity Return on Common Equity (in millions) Quarterly Full Year Return On Common Equity Computations 1Q23 1Q24 2022** Actual or Annualized net income attributable to AIG common shareholders (a) $92 $4,776 $10,247 Actual or Annualized adjusted after-tax in
Slide 27: Non-GAAP Reconciliations – RoCE (Cont'd) and Accident Year Loss and Combined Ratios
Non-GAAP Reconciliations – RoCE (Cont’d) and Accident Year Loss and Combined Ratios Return on Common Equity (continued) Life and Retirement (in millions) Quarterly 1Q23 1Q24 Adjusted pre-tax income $886 $991 Interest expense on attributed financial debt 115 114 Adjusted pre-tax income including attr
Slide 28: Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios (cont'd)
Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios (cont’d) General Insurance – North America General Insurance – North America – Commercial Lines Quarterly Quarterly 1Q23 1Q24 1Q23 1Q24 Loss ratio 60.7 62.8 Loss ratio 61.3 64.0 Catastrophe losses and reinstatement premiums (3.9) (3.6
Slide 29: Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios (cont'd)
Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios (cont’d) General Insurance – International – Commercial Lines General Insurance – International – Personal Insurance Quarterly Quarterly 1Q23 1Q24 1Q23 1Q24 Loss ratio 62.0 54.1 Loss ratio 55.4 54.4 Catastrophe losses and reinstatemen
Slide 30: Non-GAAP Reconciliations – Underwriting Ratios – Comparable Basis
Non-GAAP Reconciliations – Underwriting Ratios – Comparable Basis 1Q23 1Q24 Crop Risk Services Comparable Crop Risk Services Comparable As Reported and Validus Re Basis As Reported and Validus Re Basis General Insurance Combined ratio 91.9 1.6 93.5 89.8 (0.1) 89.7 Accident year loss ratio, as adjust
Slide 31: Non-GAAP Reconciliations – General Insurance Metrics Excluding Crop Risk Services and Validus Re
Non-GAAP Reconciliations – General Insurance Metrics Excluding Crop Risk Services and Validus Re Underwriting Income North America - General Insurance Commercial Insurance 1Q23 1Q24 1Q23 1Q24 Underwriting income, as reported $502 $596 $331 $236 Crop Risk Services and Validus Re (145) — (130) — Under
Slide 32: Non-GAAP Reconciliations – Net Premiums Written – Comparable Basis
Non-GAAP Reconciliations – Net Premiums Written – Comparable Basis Net Premiums Written – Comparable Basis North America International Global Commerical Global Personal General Insurance Total Commercial Lines Personal Insurance Total Commercial Lines Personal Insurance Lines Insurance 1Q24 1Q24 1Q2
Slide 33: Non-GAAP Reconciliations – Premiums
Non-GAAP Reconciliations – Premiums (in millions) Quarterly 1Q23 1Q24 Individual Retirement: Premiums $78 $41 Deposits 4,807 4,822 Other (2) (2) Premiums and deposits $4,883 $4,861 Individual Retirement (Fixed Annuities): Premiums $78 $40 Deposits 2,172 2,574 Other (2) (2) Premiums and deposits $2,2
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