American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q3 2024 Earnings Presentation
29 slides from American International Group, Inc. New's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Financial Results Presentation
Third Quarter 2024 Financial Results Presentation November 5, 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: Q3 2024 Earnings Key Themes
Q3 2024 Earnings Key Themes • Excellent financial and operational results supported by continued Adjusted EPS* growth “AIG delivered excellent third • North America Commercial delivered double-digit NPW quarter financial results with growth(1) supported by strong new business growth and strong profi
Slide 3: Q3 2024 Financial Highlights
Quarterly Results GI Other Investments Capital Q3 2024 Financial Highlights AATI* per diluted share of $1.23 increased 18% from the prior year quarter and 31% on a comparable basis(1) Reported $6.4B 92.6% $0.71 $71.46 4.1% 1% 210 bps $2.81 vs 3Q23 vs 3Q23 in 3Q23 Net Premiums Written (NPW) Calendar
Slide 4: Diversified Business Mix
Quarterly Results GI Other Investments Capital Diversified Business Mix Balanced portfolio across both product lines and geography By Product By Geography Personal Insurance International 30% 56% Personal Property Lines Intl Personal 17% 16% 21% NA Comm'l 35% A&H $23.5B(1) $23.5B(1) 14% NPW Liabilit
Slide 5: General Insurance
Quarterly Results GI Other Investments Capital General Insurance Global Commercial Lines net premiums written growth of 7% on a comparable basis(1) Key Financials Net Premiums Written ($ M) ($ M) 3Q23 3Q23(1) 3Q24 Total NPW $6,462 (1)% / +6% Adj.(1) $6,380 Net premiums written $6,462 $6,018 $6,380 $
Slide 6: North America Commercial Lines
Quarterly Results GI Other Investments Capital North America Commercial Lines Net premiums written growth of 11% on a comparable basis(1) ($ M) 3Q23 3Q23 3Q24 Change Change • NPW increased 11%(1) from 3Q23 driven Comp. Basis(1) Comp. Basis(1) primarily by Retail Casualty as well as Net premiums writ
Slide 7: North America Personal Insurance
Quarterly Results GI Other Investments Capital North America Personal Insurance Continued growth and underwriting improvement in High Net Worth ($ M) 3Q23 3Q24 Change • NPW increased 4% from 3Q23 primarily driven by growth in High Net Worth, Net premiums written $607 $632 4% resulting from positive
Slide 8: International Commercial Lines
Quarterly Results GI Other Investments Capital International Commercial Lines Very strong calendar year combined ratio of 84.3% 3Q23 Change • NPW increased 3%(1) from 3Q23, driven ($ M) 3Q23 Comp. Basis(1) 3Q24 Change Comp. Basis(1) by Global Specialty, Property, and Talbot Net premiums written $2,0
Slide 9: International Personal Insurance
Quarterly Results GI Other Investments Capital International Personal Insurance Underwriting income increased 116% from prior year quarter 3Q23 Change ($ M) 3Q23 Comp. Basis(1) 3Q24 Change Comp. Basis(1) • NPW increased 3%(1) from 3Q23 driven by growth in Personal Auto, Travel, and A&H Net premiums
Slide 10: Other Operations
Quarterly Results GI Other Investments Capital Other Operations Improvement in APTL driven by higher net investment income, lower GOE, and lower interest expense Other Operations Adjusted Pre-tax Loss (APTL) • Other Operations APTL improved ($ M) 3Q23 2Q24 3Q24 YoY QoQ $135M from prior year quarter
Slide 11: Other Noteworthy Items
Quarterly Results GI Other Investments Capital Other Noteworthy Items 3Q23 3Q24 EPS – EPS – ($ M, except per share amounts) APTI AATI(1) APTI AATI(1) Diluted(2) Diluted(2) Impact of excluding prior year divestitures: Validus Re $(98) $(68) $(0.09) Expense Items: Catastrophe losses, net of reinsuranc
Slide 12: Investment Portfolio
Quarterly Results GI Other Investments Capital Investment Portfolio Well-diversified investment portfolio with solid credit characteristics AIG Investment Portfolio ($ B) $0.8 • $94.6B high quality investment portfolio with aggregate asset Fixed Maturity Securities (FMS) - Available for sale (AFS),
Slide 13: Investment Income
Quarterly Results GI Other Investments Capital Investment Income Yield on FMS - AFS Bonds and Loans increased since 2021 due to higher interest rates AIG Yields and Investment Income on FMS – AFS Bonds and Mortgage and Other Loans Receivable(1) ($ M) • 3Q24 yield(2) on FMS – AFS Bonds $646 $649 $674
Slide 14: Balance Sheet Strength
Quarterly Results GI Other Investments Capital Balance Sheet Strength Debt to capital ratio of 17.9% and strong insurance company capitalization Capital Structure ($ B) Capital Ratios September 30, 2024 • At September 30, 2024, total debt to $54.9 total capital ratio of 17.9% is within target levera
Slide 15: AIG Shareholders' Equity
Quarterly Results GI Other Investments Capital AIG Shareholders’ Equity Walk From AIG Reported to Core Operating Shareholders’ Equity at September 30, 2024 ($ B) $1.5 $(4.0) $(8.1) $45.0 $46.6 $34.5 (1) Total AIG Less: Investments AOCI AIG Adjusted Less: DTA Less: Public Market Value of AIG Core Ope
Slide 16: Capital Management
Quarterly Results GI Other Investments Capital Capital Management Continued successful execution of balanced capital management Share Repurchase ($ M) AIG Total Debt to Total Capital Leverage Ratio(1) Aggregate share repurchases of $6.7B Achieved milestone of meeting leverage target of 15-20% $1,668
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Non-GAAP Reconciliations – Adjusted Pre-tax Income
Non-GAAP Reconciliations – Adjusted Pre-tax Income (in millions) Quarterly 3Q23 3Q24 Pre-tax income from continuing operations $1,100 $649 Adjustments to arrive at Adjusted pre-tax income Changes in the fair values of equity securities and AIG's investment in Corebridge (31) (25) Loss (gain) on exti
Slide 23: Non-GAAP Reconciliations – Adjusted After-tax Income
Non-GAAP Reconciliations – Adjusted After-tax Income (in millions) Quarterly 3Q23 3Q24 Net income (loss) $2,747 $457 Noncontrolling interests (income) loss (1) (720) 2 Net income attributable to AIG - including discontinued operations $2,027 $459 Dividends on preferred stock and preferred stock rede
Slide 24: Non-GAAP Reconciliations – Book Value Per Share
Non-GAAP Reconciliations – Book Value Per Share (in millions, except per share data) 3Q24 Book Value Per Share Total AIG shareholders' equity $45,039 Less: Preferred equity — Total AIG common shareholders' equity (a) 45,039 Less: Investments AOCI (2,074) Add: Cumulative unrealized gains and losses r
Slide 25: Non-GAAP Reconciliations – Return on Equity
Non-GAAP Reconciliations – Return on Equity Return on Equity (in millions) Quarterly Return On Equity Computations 3Q23 3Q24 Actual or Annualized net income attributable to AIG common shareholders (a) $8,080 $1,836 Actual or Annualized adjusted after-tax income attributable to AIG common shareholder
Slide 26: Non-GAAP Reconciliations – Comparable Basis
Non-GAAP Reconciliations – Comparable Basis (dollars in millions) 3Q23 As Reported Foreign Exchange Validus Re Comparable Basis General Insurance Net premiums written $6,462 $(79) $(365) $6,018 Net premiums earned 6,422 — (775) 5,647 Losses and loss adjustment expense 3,828 — (495) 3,333 Acquisition
Slide 27: Non-GAAP Reconciliations – Comparable Basis (cont'd)
Non-GAAP Reconciliations – Comparable Basis (cont’d) (dollars in millions) 3Q23 As Reported Foreign Exchange Validus Re Comparable Basis International Commercial Lines Net premiums written $2,038 $(20) $(22) $1,996 Net premiums earned 2,042 — (31) 2,011 Losses and loss adjustment expense 1,127 — (26
Slide 28: Non-GAAP Reconciliations – Comparable Basis (cont'd)
Non-GAAP Reconciliations – Comparable Basis (cont’d) (in millions) Trailing Twelve Month Basis 3Q24 General Insurance As Reported Validus Re Comparable Basis Net premiums written $23,580 $(62) $23,518 Gross premiums written General Insurance 3Q24 Increase (decrease) as reported in U.S. dollars (2.6)
Slide 29: Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios
Non-GAAP Reconciliations – Accident Year Loss and Combined Ratios General Insurance Quarterly 3Q23 3Q24 Loss ratio 59.6% 60.7% Catastrophe losses and reinstatement premiums (6.9) (6.9) Prior year development, net of reinsurance and prior year premiums 2.7 2.6 Accident year loss ratio, as adjusted 55
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