In This Article:
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Net Premiums Written: $6.1 billion in Q4, a 7% increase year-over-year.
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Net Premiums Earned: $6 billion in Q4, a 6% increase year-over-year.
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Adjusted After-Tax Income Per Share: $1.30 in Q4, a 5% increase year-over-year.
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Calendar Year Combined Ratio: 92.5% in Q4.
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Accident Year Combined Ratio (Excluding Catastrophes): 88.6% in Q4.
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Full Year Adjusted After-Tax Income: $3.3 billion, or $4.95 per diluted share, a 28% increase year-over-year.
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Full Year Net Premiums Written: $23.9 billion, a 6% increase year-over-year.
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Full Year Net Premiums Earned: $23.5 billion, a 7% increase year-over-year.
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Full Year Accident Year Combined Ratio (As Adjusted): 88.2%.
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Full Year General Insurance Combined Ratio: 91.8%.
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Full Year Underwriting Income: $1.9 billion.
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Global Commercial Net Premiums Written: $16.8 billion, a 7% increase year-over-year.
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North America Commercial Net Premiums Written: 9% increase year-over-year.
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International Commercial Net Premiums Written: 4% increase year-over-year.
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Global Personal Net Premiums Written: 3% increase year-over-year.
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Capital Returned to Shareholders: $8.1 billion in 2024.
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Parent Liquidity: $7.7 billion at year-end.
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Debt to Total Capital Ratio: Reduced to 17%.
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Net Investment Income (APTI Basis): $3.5 billion for full year 2024, up 13% from 2023.
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Book Value Per Share: $70.16 at year-end, up 8% from December 31, 2023.
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Adjusted Book Value Per Share: $73.79, down 6% from year-end 2023.
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Core Operating ROE: 9.1% for the quarter and full year.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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American International Group Inc (NYSE:AIG) reported strong net premiums written of $6.1 billion in the fourth quarter, a 7% increase year-over-year, driven by 8% growth in global commercial lines.
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The company achieved a 5% year-over-year growth in adjusted after-tax income per share, reaching $1.30 per share.
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AIG successfully executed significant strategic and operational initiatives in 2024, including the deconsolidation of Corebridge Financial and the sale of non-core businesses.
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The company achieved $450 million in run rate savings through the AIG Next program, with further benefits expected in 2025.
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AIG returned $8.1 billion of capital to shareholders in 2024, reducing shares outstanding by 12% and increasing the quarterly dividend per share by 11%.
Negative Points
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AIG faced higher catastrophe losses in the fourth quarter, which impacted general insurance underwriting income, resulting in a $156 million decrease from the prior year quarter.
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The sale of the global personal travel and assistance business is expected to have a negative impact on the global personal segment in 2025, removing approximately $720 million of net premiums written.
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The expense ratio has been running higher than expected, despite improvements in the loss ratio.
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AIG's adjusted book value per share decreased by 6% from year-end 2023, primarily due to the impact of Corebridge deconsolidation.
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The company anticipates continued pressure on its private equity portfolio due to the current macro environment, which may affect investment income.