AIG reports earnings for Q3 2023

AIG reports earnings for Q3 2023

AIG reports earnings for Q3 2023 | Insurance Business Asia

Insurance News

AIG reports earnings for Q3 2023

Completion of divestment announced as well

Insurance News

By
Terry Gangcuangco

American International Group has published its earnings report for the third quarter of 2023 – a period in which the global insurer delivered “exceptional” financial results, according to chair and chief executive Peter Zaffino (pictured).

Below are the numbers for AIG in the three months ended September 30.




Metric



Q3 2023



Q3 2022







Net income attributable to AIG common shareholders



US$2.02 billion



US$2.74 billion





Adjusted pre-tax income



US$1.87 billion



US$920 million





Net investment income



US$3.56 billion



US$2.67 billion





Adjusted after-tax income (AATI)



US$1.16 billion



US$644 million




 

In a release, AIG noted: “The increase in AATI was due to higher underwriting income in general insurance, higher net investment income, and better results in other operations, partially offset by an increase in adjusted income tax expenses as well as an increase in non-controlling interest expense due to the Corebridge secondary offering.”

The company’s general insurance business posted an 82% increase in adjusted pre-tax income for the quarter, while life and retirement saw a 24% jump. Other operations, however, suffered an adjusted pre-tax loss, albeit the figure was smaller compared to the loss a year ago.  

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Commenting on AIG’s performance, Zaffino said: “In the third quarter, AIG delivered exceptional results driven by continued improvement in underwriting profitability and an outstanding quarter in our commercial lines business with an 81.7% accident year combined ratio, as adjusted.

“This quarter’s adjusted after-tax income per diluted share of US$1.61 increased 92% from the prior year quarter. Our relentless focus on our strategic priorities has enabled us to accelerate our execution and generate significant sustainable value for shareholders and other stakeholders.”

“We received total consideration of US$3.3 billion in cash, including a pre-closing dividend, and approximately US$275 million in RenaissanceRe stock,” Zaffino added. “This sale significantly contributes to our efforts to streamline our business model, simplify our portfolio, and further reduce volatility.”

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