NYSE$AIG

American International Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

AIG delivered exceptional results driven by continued improvement in underwriting profitability.

AIG reported a strong Q3 2023, with adjusted after-tax income per diluted share increasing by 92% year-over-year. The General Insurance combined ratio improved, and Life and Retirement also delivered solid results. AIG is streamlining its business model and simplifying its portfolio through strategic sales.

  • Net income per diluted share was $2.81, and adjusted after-tax income per diluted share was $1.61, an increase of 92% from the prior year quarter
  • General Insurance combined ratio was 90.5%, an improvement of 680 basis points from the prior year quarter, including 6.9 points of catastrophe losses and 2.7 points of favorable prior year development (PYD), net of reinsurance and prior year premiums
  • General Insurance accident year combined ratio, as adjusted was 86.3%, an improvement of 210 basis points from the prior year quarter, driven by the outstanding performance of the Commercial Lines AYCR of 81.7%
  • Life and Retirement adjusted pre-tax income was $971 million, up 24% from the prior year quarter, benefiting from continued growth in net investment spread

Headline financials

Total Revenue

$12.8B

Previous: $14.6B-12.5%
EPS (adj)

$1.61

Previous: $0.66+143.9%
Underwriting income

$611M

No prior period
Accident year combined ratio, as adjusted

86.3%

Previous: 88.4%-2.4%
Free Cash Flow

$2.03B

Previous: $2.71B-25.2%
Net Income

$2.03B

Previous: $2.71B-25.2%
Operating Income

$8.04B

Previous: $5.21B+54.4%
Gross Profit

$10.3B

Previous: $7.46B+38.4%
Cash & Equivalents

$1.99B

Previous: $2.29B-13.1%
Total Assets

$522B

Previous: $523B-0.3%

Revenue & EPS history

AIG · Revenue · Quarterly

$12.8B

Q3 2023-12.5%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

AIG is focused on underwriting excellence and portfolio optimization, which is expected to lead to continued improvement in financial results.

Tailwinds

  • Continued improvement in underwriting profitability
  • Outstanding quarter in Commercial Lines business
  • Relentless focus on strategic priorities
  • Streamlining of business model
  • Simplification of portfolio

Headwinds

  • Potential impact of adverse developments affecting economic conditions
  • Occurrence of catastrophic events
  • Disruptions in the availability or accessibility of information technology systems
  • Inability to safeguard the confidentiality and integrity of data due to cyberattacks
  • AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof

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 Q3 2023

Historical avgQ3 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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