Company saw strong financial performance, CEO says
By Steven Byerley
Aug 01, 2023 Share
American International Group (AIG) has announced its second-quarter financial results.
AIG chairman and CEO Peter Zaffino said the company had achieved remarkable financial performance and successfully executed on strategic priorities during the quarter. AIG's adjusted after-tax income per diluted common share reached $1.75, the highest since 2007.
“Our ability to continue to grow, manage volatility and improve profitability reflects our commitment to underwriting and operational excellence,” Zaffino said. “In addition to our strong financial performance, our team executed on several transactions that will simplify AIG, reduce volatility, generate liquidity and capital efficiencies, and allow us to accelerate our capital management plans.”
The general insurance division saw continued improvement in accident year underwriting margin and growth. Net premiums written increased by 11% year-over-year and commercial lines net premiums written rose by 13%, driven by growth in North America Commercial Lines.
The combined ratio in General Insurance was 90.9%, despite $250 million in catastrophe losses. The accident year combined ratio, ex-CAT, improved to 88.0%, the lowest for the second quarter since 2007.
Read more: AIG names permanent chief financial officer
Life and retirement also achieved positive results, with premiums and deposits exceeding $10 billion, a 42% increase compared to the previous year. This growth was driven by record sales in Fixed Index Annuities, accompanied by continued expansion of base net investment spread.
Capital management remained a focus for AIG, as evidenced by the increase in the quarterly common stock dividend by 12.5% to $0.36 per share. Shareholders were further rewarded through $554 million of AIG common stock repurchases and $268 million of dividends.
Additionally, AIG announced the sale of Validus Re to RenaissanceRe for $3 billion and successfully completed the sale of AIG's Crop Risk Services business to American Financial Group, Inc. for approximately $240 million. AIG also launched Private Client Select as a managing general agency with Stone Point Capital LLC, establishing an independent platform for the high and ultra-high net worth markets.
Last week, AIG announced the appointment of Christopher Schaper as global chief underwriting officer.
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- AIG reveals sale of Validus Re
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