American International Group, Inc. (AIG) Bundle
A Brief History of AIG
Company Overview
American International Group, Inc. (AIG) is a prominent global insurance organization headquartered in New York City. Established in 1919, AIG provides a wide range of insurance products and services to customers across the globe. As of September 30, 2024, AIG reported total assets of approximately $169.4 billion and shareholders’ equity of $45.0 billion.
Financial Performance
For the nine months ended September 30, 2024, AIG's total revenues amounted to $20.1 billion, a decrease of 6% compared to $21.4 billion for the same period in 2023. The company reported a net loss attributable to AIG common shareholders of $2.3 billion for the nine months ended September 30, 2024, compared to a net income of $3.5 billion in the prior year.
| Financial Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $20.1 billion | $21.4 billion | -6% |
| Net Income (Loss) | $(2.3) billion | $3.5 billion | NM |
| Total Assets | $169.4 billion | $539.3 billion | -69% |
| Shareholders’ Equity | $45.0 billion | $45.4 billion | -1% |
Stock Performance
AIG's stock has experienced significant fluctuations. As of September 30, 2024, AIG’s common stock was trading at approximately $25.00 per share, reflecting a decline from a high of $65.00 per share in early 2023. The company's market capitalization stood at approximately $47.5 billion.
Dividends and Share Repurchase
In 2024, AIG declared dividends of $0.40 per share on common stock for the second and third quarters, totaling $758 million in dividend payments. Additionally, during the nine months ended September 30, 2024, AIG repurchased approximately 65 million shares of its common stock for an aggregate purchase price of approximately $4.8 billion.
| Dividend Payments | Q1 2024 | Q2 2024 | Q3 2024 |
|---|---|---|---|
| Dividend per Share | $0.36 | $0.40 | $0.40 |
| Total Cash Dividends | $254 million | $758 million | $758 million |
Recent Transactions and Business Changes
AIG has been active in restructuring its business portfolio. In May 2024, AIG agreed to sell approximately 20% of Corebridge’s common stock to Nippon Life Insurance Company for $3.8 billion. Additionally, AIG is in the process of selling its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million.
Debt and Liabilities
As of September 30, 2024, AIG reported long-term debt of $9.9 billion, down from $10.4 billion at the end of 2023. The company announced plans to redeem all outstanding Zero Coupon Callable Notes due 2047 on November 22, 2024, with a total face amount of $400 million.
| Debt Metrics | 2024 | 2023 |
|---|---|---|
| Long-Term Debt | $9.9 billion | $10.4 billion |
| Notes Due 2047 (Face Amount) | $400 million | N/A |
Conclusion of Historical Overview
The history of AIG is marked by significant changes in financial performance, stock behavior, and strategic transactions, positioning the company for future growth amidst challenges in the insurance sector.
A Who Owns American International Group, Inc. (AIG)
Shareholder Composition
As of 2024, American International Group, Inc. (AIG) has a diverse shareholder composition. The largest shareholders include institutional investors, mutual funds, and individual shareholders. Below is a detailed breakdown of AIG's ownership structure:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 78% | 493.4 million |
| Mutual Funds | 15% | 94.5 million |
| Individual Shareholders | 7% | 42.4 million |
Major Institutional Shareholders
The following table lists the major institutional shareholders of AIG as of September 2024:
| Institution | Ownership Percentage | Shares Held (millions) |
|---|---|---|
| The Vanguard Group | 8.5% | 53.4 |
| BlackRock, Inc. | 7.9% | 49.9 |
| State Street Corporation | 6.3% | 40.0 |
| Wellington Management | 5.1% | 32.5 |
| Fidelity Investments | 4.7% | 30.1 |
Common and Preferred Stock Details
AIG's common stock has a par value of $2.50 per share, with a total of 1,906.7 million shares authorized. As of September 30, 2024, the following details are noted:
| Category | Amount |
|---|---|
| Total Common Shares Outstanding | 630.3 million |
| Total Treasury Stock | (1,276.4 million) |
| Common Stock Issued | 1,906.7 million |
| Preferred Stock Outstanding | 0 |
| Dividends on Common Stock | $0.40 per share (declared on November 4, 2024) |
Financial Performance Indicators
For the nine months ended September 30, 2024, AIG reported the following financial metrics:
| Metric | Amount (in millions) |
|---|---|
| Total Assets | $169,449 |
| Total Liabilities | $124,376 |
| Total Equity | $45,039 |
| Net Income (Loss) | $(1,827) |
| Book Value per Share | $71.46 |
| Adjusted Book Value per Share | $73.90 |
Recent Corporate Actions
In 2024, AIG executed significant corporate actions including:
- Redemption of Series A Preferred Stock totaling $500 million on March 15, 2024.
- Share repurchase program authorized for $10 billion, with approximately $4.8 billion spent to repurchase around 65 million shares.
- Declared dividends on common stock, with amounts increasing from $0.36 per share in previous quarters to $0.40 per share.
Non-Controlling Interests
As of September 30, 2024, AIG holds significant non-controlling interests primarily in its subsidiary Corebridge Financial, affecting overall equity metrics:
| Category | Amount (in millions) |
|---|---|
| Non-controlling Interests | $34 |
| Corebridge Ownership Interest | 8,143 |
| Total AIG Shareholders' Equity (excluding Corebridge) | $36,896 |
American International Group, Inc. (AIG) Mission Statement
Overview of Mission Statement
The mission statement of American International Group, Inc. (AIG) focuses on delivering insurance and financial services that enable clients to manage risk and achieve their goals. AIG aims to provide innovative solutions and exceptional service.
Core Values
- Integrity: AIG emphasizes ethical practices and transparency in all dealings.
- Customer Centricity: The organization prioritizes customer needs and strives to exceed expectations.
- Innovation: AIG is committed to developing new ideas and solutions to meet the evolving needs of clients.
- Collaboration: The company fosters teamwork and collaboration across all levels and geographies.
- Diversity and Inclusion: AIG values a diverse workforce and inclusive culture to drive better business results.
Financial Performance Metrics as of September 30, 2024
| Metric | Value |
|---|---|
| Total Assets | $169.4 billion |
| Total Liabilities | $124.4 billion |
| Total AIG Shareholders' Equity | $45.0 billion |
| Net Income (Loss) Attributable to AIG Common Shareholders | $(2.3) billion |
| Basic Earnings Per Share | $(3.51) |
| Book Value Per Share | $71.46 |
| Adjusted Book Value Per Share | $73.90 |
| Core Operating Return on Equity | 9.2% |
Recent Developments
AIG has been actively restructuring its operations, focusing on core insurance segments while divesting from non-core businesses. Recent sales include Crop Risk Services and Validus Reinsurance, which have allowed AIG to streamline its operations and improve financial metrics.
Investment Performance
As of September 30, 2024, AIG reported net investment income of $2.94 billion, with significant contributions from its fixed maturity securities and other invested assets. Additionally, the company has experienced changes in unrealized gains and losses, reflecting market conditions and interest rate fluctuations.
Global Presence
AIG operates in numerous countries and regions, offering a wide range of insurance products and services. The company’s international operations contribute significantly to its overall revenue, with net premiums written across North America and International segments.
Employee Commitment
AIG’s mission statement is supported by a commitment to its employees, where the company invests in training and development to empower its workforce. Employee engagement and satisfaction are critical components of AIG’s operational success.
How American International Group, Inc. (AIG) Works
Business Overview
American International Group, Inc. (AIG) operates primarily in the insurance sector, providing a range of products and services through two main segments: General Insurance and Other Operations. General Insurance includes both North America and International operations, focusing on Commercial Lines and Personal Insurance products.
Financial Performance
As of September 30, 2024, AIG reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $6,751 million | $7,267 million | $20,074 million | $21,412 million |
| Net Income (Loss) Attributable to AIG | $459 million | $2,027 million | ($2,302 million) | $3,550 million |
| Adjusted Pre-Tax Income | $1,067 million | $1,089 million | $3,245 million | $3,099 million |
| Losses and Loss Adjustment Expenses | $3,773 million | $3,876 million | $10,753 million | $11,759 million |
Segment Operations
The General Insurance segment is managed through two geographic markets—North America and International:
| Segment | Q3 2024 Underwriting Income | Q3 2023 Underwriting Income | YTD 2024 Underwriting Income | YTD 2023 Underwriting Income |
|---|---|---|---|---|
| North America | $37 million | $235 million | $424 million | $886 million |
| International | $400 million | $376 million | $1,039 million | $821 million |
Investment Income
AIG's net investment income has shown growth, with the following figures reported:
| Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Investment Income (excluding Fortitude Re) | $922 million | $827 million | $2,819 million | $2,431 million |
| Total Net Investment Income | $973 million | $856 million | $2,942 million | $2,537 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, AIG reported the following cash flow metrics:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Operating Cash Inflows | $3,148 million |
| Investing Cash Used | ($981 million) |
| Financing Cash Used | ($6,468 million) |
Balance Sheet Highlights
As of September 30, 2024, AIG's balance sheet reflects the following data:
| Metric | Amount (in millions) |
|---|---|
| Total Assets | $169,449 million |
| Total Liabilities | $124,376 million |
| Total Equity | $45,073 million |
| Long-term Debt | $9,892 million |
| Book Value per Share | $71.46 |
| Tangible Book Value per Share | $65.37 |
Dividend Payments and Stock Repurchases
AIG made cash dividend payments totaling $758 million during the nine months ended September 30, 2024. The company repurchased approximately 65 million shares of common stock for an aggregate purchase price of about $4.8 billion during the same period.
Recent Transactions
In 2024, AIG announced significant transactions, including:
- Sale of 20% of Corebridge shares to Nippon Life Insurance Company for $3.8 billion.
- Agreement to sell its global individual personal travel insurance business to Zurich Insurance Group for $600 million.
Conclusion
AIG continues to adapt its operations and financial strategies in response to market conditions, focusing on strengthening its core insurance businesses while managing its investment portfolio effectively.
How American International Group, Inc. (AIG) Makes Money
Revenue Streams
AIG generates revenue primarily through the following streams:
- Insurance Premiums: AIG collects premiums from various insurance products, which include property, casualty, and life insurance.
- Net Investment Income: AIG invests the premiums collected, generating income from its investment portfolio.
- Fees and Commissions: Additional income comes from fees related to insurance services and commissions from third-party services.
Financial Performance Overview
As of September 30, 2024, AIG reported total revenues of $6.751 billion, a decrease of 7% compared to $7.267 billion during the same period in 2023.
The breakdown of total revenues for the three months ended September 30, 2024, is as follows:
| Revenue Source | Amount (in millions) |
|---|---|
| Premiums | $5,945 |
| Net Investment Income | $973 |
| Other Income | $0 |
| Total Revenues | $6,751 |
Insurance Premiums
Insurance premiums are the largest source of revenue for AIG. For the three months ended September 30, 2024, net premiums written amounted to $6.380 billion, representing a slight decline of 1% from $6.462 billion in the previous year.
The detailed performance of net premiums written is as follows:
| Region | Net Premiums Written (in millions) | Change (%) |
|---|---|---|
| North America | $3,077 | -2% |
| International | $3,303 | 0% |
| Total | $6,380 | -1% |
Net Investment Income
AIG's investment portfolio is crucial for generating income. The company reported net investment income of $973 million for the three months ended September 30, 2024, an increase of 14% compared to $856 million in the same period of 2023.
The composition of net investment income includes:
- Excluding Fortitude Re: $922 million
- Fortitude Re Funds Withheld: $51 million
Expenses and Losses
Total benefits, losses, and expenses for AIG amounted to $6.102 billion for the three months ended September 30, 2024, which is a slight decrease of 1% from $6.167 billion in 2023.
The major components of these expenses include:
- Losses and loss adjustment expenses incurred: $3.773 billion
- Amortization of deferred policy acquisition costs: $863 million
- General operating and other expenses: $1.346 billion
Underwriting Income
AIG's underwriting income is a critical measure of its profitability in the insurance sector. For the three months ended September 30, 2024, underwriting income was $1.210 billion, compared to $1.367 billion in the same period of 2023, reflecting a decrease of 11%.
The underwriting performance by segment is shown below:
| Segment | Underwriting Income (in millions) |
|---|---|
| North America | $37 |
| International | $400 |
| Total Underwriting Income | $1,210 |
Net Income
AIG reported a net income attributable to common shareholders of $459 million for the three months ended September 30, 2024, a significant decrease from $2.027 billion in the same period of 2023.
The net income or loss attributable to AIG common shareholders is summarized as follows:
| Period | Net Income (Loss) (in millions) |
|---|---|
| Q3 2024 | $459 |
| Q3 2023 | $2,027 |
Investment Strategy
AIG's investment strategy focuses on generating income while maintaining liquidity and capital preservation. As of September 30, 2024, AIG had approximately $64 billion managed by BlackRock, which includes a diversified portfolio of liquid fixed income and private equity assets.
Capital Management
AIG maintains a robust capital management strategy, with total shareholders' equity reported at $45.039 billion as of September 30, 2024. The company paid dividends of $0.40 per share during the three months ended September 30, 2024, totaling approximately $758 million.
The following table outlines AIG's capital structure:
| Capital Component | Amount (in billions) |
|---|---|
| Total Shareholders' Equity | $45.039 |
| Long-term Debt | $9.892 |
| Book Value per Share | $71.46 |
Dividends and Stock Repurchases
AIG repurchased approximately 65 million shares of common stock for an aggregate purchase price of $4.8 billion during the nine months ended September 30, 2024. The company continues to emphasize returning capital to shareholders through dividends and stock repurchases.
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Resources:
- American International Group, Inc. (AIG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American International Group, Inc. (AIG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American International Group, Inc. (AIG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.