NYSE$AIG

American International Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

AIG navigated the complex environment, maintained financial flexibility, and improved underwriting profitability.

AIG reported its Q2 2020 results, showing resilience amidst the COVID-19 pandemic. The company focused on portfolio remediation and expense discipline, while Life and Retirement benefited from diversification. AIG also executed transactions to enhance its risk profile, including the sale of a majority stake in Fortitude Holdings.

  • AIG effectively navigated the complex environment due to the strong foundation built over the last three years.
  • COVID-19 remained an earnings, not a capital, event for AIG.
  • Core businesses performed well, with General Insurance showing underwriting profitability improvement and Life and Retirement benefiting from diversification.
  • AIG executed transactions, including the sale of a majority stake in Fortitude Holdings, to enhance its risk profile.

Headline financials

Total Revenue

$9.4B

Previous: $12.6B-25.2%
EPS (adj)

$0.66

Previous: $1.43-53.8%
Underwriting income

-$343M

No prior period
Accident year combined ratio, as adjusted

94.9%

No prior period
Free Cash Flow

-$7.93B

Previous: $1.11B-814.9%
Net Income

-$7.93B

Previous: $1.11B-814.9%
Operating Income

-$904M

Previous: $2.23B-140.6%
Gross Profit

$1.18B

Previous: $4.37B-73.0%
Cash & Equivalents

$3.41B

Previous: $2.94B+16.1%
Total Assets

$569B

Previous: $522B+9.0%

Revenue & EPS history

AIG · Revenue · Quarterly

$9.4B

Q2 2020-25.2%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

AIG is focused on becoming a top-performing company and leading insurance franchise.

Tailwinds

  • Strong foundation built over the last three years enables effective navigation of the complex environment.
  • Financial flexibility increased, ending the second quarter with over $10 billion in liquidity.
  • Underlying underwriting profitability improvement in General Insurance driven by portfolio remediation and expense discipline.
  • Life and Retirement benefited from its diversification and agility.
  • Executed transactions enhanced risk profile and positioned core businesses for growth.

Headwinds

  • COVID-19 continues to adversely affect the business, financial condition and results of operations.
  • Uncertainty regarding the scope, severity and duration of the crisis and actions taken by governmental and regulatory authorities.
  • Possibility of a prolonged recession in the U.S. and other major economies.
  • Potential for materially and adversely affected businesses, results of operations and financial condition.
  • Risk that the actual impacts of COVID-19 may differ materially from forward-looking statements due to uncertain and unpredictable factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+11.5%

Q1 2010

Best reaction

-11.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.1%+3.9%-0.7%
Q4 2025+4.6%+4.4%+2.3%
Q3 2025-5.4%-4.7%-4.6%
Q2 2025+2.0%+4.3%+3.4%
Q1 2025+3.2%+1.1%+4.7%
Q4 2024+1.2%-2.1%+9.5%
Q3 2024-0.4%-0.2%+0.3%
Q2 2024-5.2%-11.2%-2.5%
Q1 2024+3.7%+6.2%+4.7%
Q4 2023-0.8%+0.4%+8.8%
Q3 2023+5.0%+4.3%+7.6%
Q2 2023+1.6%+0.7%-2.9%
Q1 2023+4.8%+3.4%+7.5%
Q4 2022+1.0%-1.1%-23.2%
Q3 2022+0.5%+1.6%+10.7%
Q2 2022+3.3%+10.8%+3.6%
Q1 2022+8.3%+5.4%-1.5%
Q4 2021+1.7%+2.2%+1.1%
Q3 2021-3.5%-3.8%-12.7%
Q2 2021+8.2%+12.8%+17.0%
Q1 2021+4.7%+3.1%+9.3%
Q4 2020+4.5%+2.9%+15.5%
Q3 2020+5.0%+21.0%+28.8%
Q2 2020-7.5%-4.6%-7.2%
Q1 2020+4.9%+15.7%+39.1%
Q4 2019-10.7%-9.7%-47.5%
Q3 2019+3.7%+4.8%-0.6%
Q2 2019+4.5%+1.3%+0.9%
Q1 2019+6.8%+9.6%+13.9%
Q4 2018-8.3%-3.4%+0.5%
Q3 2018+5.3%+7.7%+5.6%
Q2 2018-2.4%-3.6%-3.3%
Q1 2018-7.8%-5.4%-5.4%
Q4 2017-0.4%-1.7%-6.4%
Q3 2017-4.1%-3.9%-7.4%
Q2 2017+0.9%-0.8%-7.3%
Q1 2017+1.9%+0.6%+4.4%
Q4 2016-8.0%-5.5%-4.9%
Q3 2016-4.2%-2.3%+5.1%
Q2 2016+7.2%+9.0%+9.6%
Q1 2016+0.2%
Q4 2015+1.0%
Q3 2015-3.3%
Q2 2015-2.8%
Q1 2015+1.9%
Q4 2014+3.3%
Q3 2014-0.3%
Q2 2014+0.3%
Q1 2014-3.5%
Q4 2013-0.1%
Q3 2013-7.1%
Q2 2013+6.2%
Q1 2013+8.1%
Q4 2012+2.3%
Q3 2012-6.4%
Q2 2012+1.6%
Q1 2012-5.6%
Q4 2011+2.7%
Q3 2011-1.2%
Q2 2011-11.0%
Q1 2011-3.0%
Q4 2010-3.7%
Q3 2010-0.2%
Q2 2010+4.4%
Q1 2010+11.5%
Q3 2008-7.9%
Q3 2009-7.9%
Q2 2009+5.5%
Q2 2008+5.5%

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