NYSE$AIG

American International Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

AIG's Q2 2023 financial performance was marked by strong adjusted EPS, growth in net premiums written, and strategic portfolio repositioning.

AIG reported a net income of $1.5 billion and adjusted after-tax income of $1.3 billion for Q2 2023. The company saw growth in General Insurance net premiums written and Life and Retirement adjusted pre-tax income. AIG also executed several strategic transactions, including the sale of Validus Re and a secondary offering of Corebridge Financial common stock.

  • Adjusted after-tax income per diluted common share was $1.75, the highest since 2007.
  • General Insurance net premiums written grew by 10%, with Commercial Lines up 14%.
  • Life and Retirement adjusted pre-tax income increased by 33%, driven by strong growth in base investment yield.
  • AIG repurchased $554 million of common stock and increased the quarterly common stock dividend by 12.5%.

Headline financials

Total Revenue

$13.2B

Previous: $14.4B-8.5%
EPS (adj)

$1.75

Previous: $1.19+47.1%
Underwriting income

$594M

No prior period
Accident year combined ratio, as adjusted

88.0%

Previous: 88.5%-0.6%
Free Cash Flow

$1.49B

Previous: $3.04B-50.8%
Net Income

$1.49B

Previous: $3.04B-50.8%
Operating Income

$5.34B

Previous: $6.01B-11.3%
Gross Profit

$7.78B

Previous: $8.42B-7.6%
Cash & Equivalents

$2.28B

Previous: $5.6B-59.2%
Total Assets

$537B

Previous: $539B-0.3%

Revenue & EPS history

AIG · Revenue · Quarterly

$13.2B

Q2 2023-8.5%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

AIG is focused on continuing its journey to become a top-performing company, delivering excellence, and creating sustainable long-term value for stakeholders. The company aims to simplify AIG, reduce volatility, and generate liquidity and capital efficiencies.

Tailwinds

  • Continued accident year underwriting margin improvement.
  • Strong growth in net premiums written, driven by Commercial Lines.
  • Excellent financial results in General Insurance.
  • Very good results in Life & Retirement, with increased premiums and deposits.
  • Continued execution of a balanced capital management strategy.

Headwinds

  • Challenging quarter for the industry.
  • Higher catastrophe losses.
  • Lower favorable prior year development.
  • Decline in pre-tax income primarily driven by decrease in net realized gains.
  • Higher interest crediting rates at Life and Retirement.

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 2023

Historical avgQ2 2023

+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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