American International Group, Inc. (AIG) 2024 Q2 Earnings Call Summary
August 1, 2024 
American International Group, Inc. (AIG)
| Market Cap | 0.21T |
|---|---|
| Beta | |
| P/E | 39.75452774136047 |
| EPS | 12.247158441111395 |
| Dividend | 0 |
| Dividend Yield | 0.00% |
Optimistic Highlights
Strong Q2 Performance
Adjusted after-tax income was $775 million, a 38% increase year-over-year, driven by strong organic growth and underwriting performance.
General Insurance Growth
Net premiums written grew 7%, with Global Commercial growing over 8%.
Underwriting Income Increase
Underwriting income was $430 million, with underlying underwriting income improving $110 million or 17% year-over-year.
Investment Income Growth
Consolidated net investment income increased by 14% year-over-year to $884 million.
Shareholder Returns
Returned nearly $2 billion to shareholders through stock repurchases and dividends.
Pessimistic Highlights
Catastrophe Losses
CAT loss ratio was 5.7%, totaling $325 million in catastrophe-related losses.
Slight Increase in Combined Ratio
The calendar year combined ratio increased slightly by 10 basis points from the prior year.
Company Outlook
Positive Future Prospects
AIG is focused on delivering outstanding financial performance and making progress on strategic initiatives, including the deconsolidation of Corebridge and sales of certain business units.
Capital Management Strategy
AIG plans to further reduce share count and has a target debt to capital leverage ratio range of 15% to 20%.
Investment in AI and Digital Strategy
AIG is investing in artificial intelligence and digital strategies to increase underwriting efficiency and execution capabilities.
Q & A Highlights
Q: Can you provide more detail on the updated combined ratio trajectory for 2025? (Michael Zaremski, from BMO)
A: The guidance does not contemplate any improvement in the loss ratio; it's all in the expense ratio. We're not anticipating any caveats on loss ratios to meet that guidance. (Peter Zaffino)
Q: Can you discuss the impact of the sale of the travel insurance on underwriting results in North America Personal? (Meyer Shields, from KBW)
A: The premium impact is $750 million on net premiums written, but the overall impact on the combined ratio will be de minimis. (Peter Zaffino)
Q: What does exploring inorganic opportunities mean for AIG? (Elyse Greenspan, from Wells Fargo Securities)
A: It involves looking at opportunities where we have existing businesses that could benefit from more scale, complementary geographies, or investments in businesses like AIG TATA in India. (Peter Zaffino)
Q: How is AIG shifting the culture back to a growth mindset? (Mike Ward, from Citigroup)
A: AIG has pivoted to a growth mindset, focusing on creating more value for distribution partners and clients, and pursuing targeted risks. This includes strong retention and executing on specific market opportunities. (Don Bailey and Jon Hancock)