American Worldwide Group, Inc. (NYSE: AIG) launched its third-quarter 2024 monetary outcomes, highlighting sturdy efficiency in its International Business Strains and continued progress in capital administration.
Key Takeaways from Q3-2024 Outcomes
- Web Premiums Written:
- Normal Insurance coverage internet premiums totaled $6.4 billion, reflecting a slight 1% decline on a reported foundation however a 6% enhance on a comparable foundation.
- International Business Strains contributed $4.5 billion, exhibiting a 2% decline on a reported foundation however a 7% development on a comparable foundation. North America Business Strains led with an 11% enhance.
- New enterprise written in International Business Strains reached $1.1 billion, a 9% year-over-year development.
- Underwriting Efficiency:
- Mixed ratio stood at 92.6%, with an accident yr mixed ratio (AYCR), as adjusted*, of 88.3%.
- Disaster-related fees for the quarter have been $417 million, equating to six.9 loss ratio factors.
- Earnings Highlights:
- Adjusted after-tax earnings* (AATI) per diluted share elevated to $1.23, up 18% year-over-year, or 31% on a comparable foundation.
- Web earnings per diluted share was $0.71, down from $2.81 in Q3 2023 as a result of prior inclusion of Corebridge’s consolidated outcomes.
- Capital Administration:
- Roughly $1.8 billion was returned to shareholders, comprising $1.5 billion in inventory repurchases and $254 million in dividends.
- 12 months-to-date, AIG has returned over $6 billion in capital to shareholders.
Management Insights
AIG Chairman and CEO Peter Zaffino credited the corporate’s outcomes to its disciplined underwriting strategy and capital administration technique. “AIG delivered glorious third quarter monetary outcomes with sturdy profitability and development throughout our companies highlighting the standard of the underwriting portfolio and our potential to ship constant earnings. The adjusted after-tax earnings per diluted share was $1.23 for the third quarter, an 18% enhance year-over-year, or 31% on a comparable foundation. These outcomes exhibit AIG’s potential to persistently ship underwriting excellence and capital administration self-discipline and the profitable execution of our priorities.
“We continued to execute on our capital commitments with repurchases of $1.5 billion of frequent shares and dividends of $254 million within the third quarter. By the primary 9 months of 2024, we now have returned over $6 billion of capital to shareholders, reflecting our disciplined execution of our balanced capital administration plan. We ended the quarter with a wonderful whole debt to capital ratio of 17.9% and mother or father liquidity of $4.2 billion,” Zaffino stated. He famous the 6% pricing development in International Business Strains and highlighted Lexington Insurance coverage’s 24% development as a key driver of North America Business Strains’ success.
“We achieved significant development this quarter, led by our International Business enterprise. Third quarter internet premiums written grew 6% year-over-year on a comparable foundation, pushed by 7% development in International Business Strains, which maintained very sturdy retention of 88% whereas including $1.1 billion of latest enterprise. North America Business Strains achieved 11% development with new enterprise development of twenty-two%, led by Lexington Insurance coverage which grew 24%. International Business Strains pricing, which incorporates price and publicity, elevated 6% excluding Staff’ Compensation and Monetary Strains, largely in keeping with loss value pattern.”
Zaffino additionally emphasised AIG’s resilience in managing catastrophe-related challenges. “In a difficult disaster atmosphere, this efficiency is exceptional, with trade insured losses anticipated to exceed the 2023 whole of $125 billion,” he remarked.
Trying Forward
Zaffino reaffirmed AIG’s deal with underwriting excellence and the execution of “AIG Subsequent,” the corporate’s strategic initiative to strengthen its monetary place.
“By 2024 and past, we stay extremely targeted on underwriting excellence and executing on AIG Subsequent. We’ve made substantial progress during the last a number of years to enhance the monetary power of AIG. I need to thank our purchasers, companions and stakeholders for his or her belief in us, which is a direct results of the excellent danger experience and claims companies supplied by our devoted colleagues.”
AIG ended the quarter with a complete debt-to-capital ratio of 17.9% and $4.2 billion in mother or father liquidity, underscoring its sturdy monetary standing.
