The following is a summary of the American International Group, Inc. (AIG) Q3 2024 Earnings Call Transcript:
Financial Performance:
AIG's adjusted after-tax income in Q3 2024 was $798 million or $1.23 per diluted share, marking a 31% increase in EPS year-over-year.
Underwriting income for the quarter reached $437 million, despite total catastrophe-related charges of $417 million.
Net investment income on an adjusted pre-tax basis rose by 19% year-over-year to $897 million.The calendar year combined ratio was 92.6%.
AIG returned approximately $1.8 billion to shareholders, combining $1.5 billion of stock repurchases and $254 million of dividends.
Business Progress:
Gross premiums written increased by 3% year-over-year to $8.6 billion.
Net premiums written saw a 6% growth, reaching $6.4 billion.
Global Commercial demonstrated robust growth with $4.2 billion in net premiums earned, a 7% increase year-over-year.
AIG achieved favorable prior year reserve development of $153 million.
North America Commercial grew its line by 11% in net premiums written, driven notably by casualty and excess lines, particularly Lexington, which grew by 24% in new business.
Opportunities:
Strong retention rates and new business growth across both North America and International segments, especially in casualty and specialty lines, provide a foundation for continued expansion and profitability.
The adoption of GenAI to increase efficiency and submission rates can drive further competitive advantage and promote growth.
Risks:
The persistence of natural catastrophes poses significant challenges to AIG's performance, although substantial improvements in underwriting and reinsurance strategies have mitigated its impacts.
The anticipation of continued substantial natural catastrophe losses industry-wide continues to impose financial and operational risks.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
