- Adjusted EPS (Earnings Per Share) for the quarter was $1.16, compared to $1.06 a year ago, but missed the estimate of $1.32.
- Adjusted ROE (Return on Equity) was 6.2%, up from 5.5% a year ago, but below the estimate of 7.22%.
- Book value per share increased to $68.40, up from $58.49 a year ago, exceeding the estimate of $65.97.
- General Insurance (GI) net premiums written were $6.93 billion, slightly below the estimate of $6.97 billion.
- GI catastrophe loss was $325 million, which was higher than the estimate of $254.4 million.
- GI net investment income on an APTI (Adjusted Pre-Tax Income) basis was $746 million, below the estimate of $787.9 million.
- GI combined ratio was 92.5%, compared to the estimate of 91.2%.
- GI combined ratio excluding catastrophe losses & development was 87.6%, which was better than the estimate of 88.2%.
- GI loss ratio was 61%, above the estimate of 59.8%.
- GI loss ratio excluding catastrophe losses & development was 56.1%, in line with the estimate of 56%.
- GI expense ratio was 31.5%, slightly better than the estimate of 31.7%.
- AIG reported a significant loss of $4.7 billion due to the deconsolidation of Corebridge, which included a gain of $2.5 billion from Corebridge assets retained but was offset by an accumulated other comprehensive loss of $7.2 billion.
- At the end of the quarter, AIG’s total debt to capital ratio was 18.1%, with parent liquidity at $5.3 billion.
- 2Q loss per share was $5.96, compared to an income of $2.03 a year ago, largely due to the accounting treatment of Corebridge deconsolidation.
- AIG completed its multi-year strategy to position itself for the future with the deconsolidation of Corebridge, which CEO Peter Zaffino called one of the most notable accomplishments in AIG’s history.
- 2Q GI underwriting income was $430 million.
American International Group on Smartkarma
Analyst coverage on American International Group (AIG) by Baptista Research on Smartkarma reveals a bullish sentiment towards the company’s performance. In one report titled “American International Group (AIG): What Has Been Their Path to Value Creation Post-Financial Crisis? – Major Drivers,” it is highlighted that AIG showed significant improvements in the first quarter of 2024. The company’s Chairman and CEO, Peter Zaffino, noted a steady growth with a 9% year-on-year increase in adjusted after-tax income, reaching $1.2 billion.
Another report by Baptista Research discusses how American Airlines Group is strengthening its footprint in Latin America and beyond. Despite reporting an adjusted net loss of $226 million for the first quarter of 2024, the company achieved record-high revenues of $12.6 billion. Analysts remain positive about American Airlines’ prospects, citing robust business travel demand, especially from small and medium-sized enterprises.
A look at American International Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With Smartkarma Smart Scores indicating a positive long-term outlook for American International Group, investors may find reassurance in the company’s strong growth prospects, resilience, and value. AIG scored high in growth, emphasizing its potential for expanding its business operations and increasing revenue over time. Furthermore, its robust value score suggests that the company’s current stock price may be undervalued, presenting an opportunity for investors seeking stocks with solid fundamentals. While exhibiting resilience and steady momentum, American International Group seems well-positioned to navigate market challenges and sustain its performance in the future.
American International Group, Inc., a renowned international insurance provider, caters to a diverse range of customers, including commercial entities, institutions, and individuals. Offering a variety of insurance products like property-casualty insurance, life insurance, and retirement services, AIG has established itself as a prominent player in the insurance industry. With favorable Smart Scores across various factors, including growth and value, American International Group appears to have a promising outlook, reflecting its strengths in key areas crucial for long-term success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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