American International Group (AIG) has reported a net income attributable to its common shareholders of $898m in the fourth quarter of 2024 (Q4 2024), compared with $86m in the same quarter of the previous year.
This growth was largely due to significant net losses from discontinued operations registered in Q4 2023.
Go deeper with GlobalData
AIG’s net income per diluted share reached $1.43 in Q4 2024, compared with $0.12 in Q4 2023.
In General Insurance, recently reorganised to comprise the North America Commercial, International Commercial and Global Personal segments, net premiums written (NPW) for Q4 2024 stood at $6.1bn, up 6% from the corresponding quarter of 2023.
General Insurance underwriting income was $454m in the three-month-period ended 31 December 2024, a 29% fall from the prior year, largely due to higher catastrophe charges.
In North American Commercial, underwriting income plunged 92% year-over-year in Q4 2024 to $25m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnderwriting income in International Commercial and Global Personal rose to $347m and $82m, respectively, in Q4 2024.
The company returned approximately $2.1bn of capital to shareholders through share repurchases and dividends during the quarter.
For the full year of 2024, AIG posted a net loss attributable to its common shareholders of $1.43bn, versus a net income of $3.61bn a year ago.
This lacklustre performance in 2024 was largely due to lower net income from discontinued operations after the deconsolidation of Corebridge and the resulting accounting changes.
The company’s net loss per diluted share in 2024 was $2.17, as against a net income per share of $4.98 in the prior year.
General Insurance NPW decreased by 11% year-on-year in 2024 to $23.9bn, from the previous year’s $26.8bn, due to divestitures.
Throughout the year, AIG executed $9.7bn of capital management actions including $6.6bn of share repurchases, $1bn of dividends, $1.6bn of net debt reduction and $500m of preferred stock redemption.
Additionally, the company’s board announced a quarterly cash dividend on AIG common stock of $0.40 a share, payable on 31 March 2025.
AIG chairman and CEO Peter Zaffino said: “While the early days of 2025 reflect increased global volatility and complexity, AIG has entered a new era, and we are moving forward with strong momentum on behalf of our colleagues, customers, partners and stakeholders. With our focus on disciplined capital management, sustained underwriting excellence and expense management, we are well on track to deliver 10% plus core operating return on equity for full year 2025.”
He added: “Though it is still too early to determine the full impact of the California wildfires, we estimate the net loss for AIG to be approximately $500m, before reinstatement premiums.”
Meanwhile, last year, the company sold its global personal travel insurance and assistance business, including Travel Guard, to Zurich.
