- AIG reported an adjusted earnings per share of $1.17, surpassing analyst estimates of 99 cents.
- The company’s adjusted return on equity stood at 6.4%, beating the estimated 5.37%.
- Book value per share increased to $71.38 from $64.66 year-over-year, exceeding the anticipated $70.28.
- General Insurance (GI) net premiums written were $4.53 billion, marking a slight 0.3% year-over-year increase but below the $4.63 billion estimate.
- GI catastrophe losses dramatically rose to $525 million from $106 million year-over-year, but still performed better than the expected $596.6 million loss.
- GI net investment income decreased by 3.4% year-over-year to $736 million, missing the $776 million estimate.
- The GI combined ratio increased to 95.8% from 89.8% year-over-year, but was better than the estimated 97.6%.
- The GI combined ratio excluding catastrophe losses and development improved to 87.8% from 88.4%, aligning closely with the estimate of 87.7%.
- The GI loss ratio rose to 65.3% from 58% year-over-year, yet it was better than the anticipated 66.4%.
- The GI loss ratio excluding catastrophe losses and development was 57.3%, up slightly from 56.6% year-over-year, missing the 56.2% estimate.
- The GI expense ratio improved to 30.5% from 31.8% year-over-year, performing better compared to the 31.7% estimate.
- AIG’s board approved a 12.5% increase in the quarterly dividend, raising it to 45 cents per share starting in the second quarter.
- CEO Peter Zaffino remarked on this being AIG’s best first quarter accident year combined ratio since the financial crisis, highlighting the quality of their portfolio.
- The company continues to expect achieving over 10% Core Operating ROE for the full year 2025.
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American International Group on Smartkarma
Analyst coverage of American International Group (AIG) on Smartkarma reflects positive sentiment from Value Investors Club‘s report. In their analysis titled “American International Group (AIG) – Tuesday, Nov 12, 2024,” Value Investors Club highlights AIG’s successful repositioning in the insurance industry, showcasing improved financial performance and a clear growth strategy. With a strong leadership team and a focused vision for the future, AIG is poised to deliver value for both customers and shareholders.
Additionally, Baptista Research‘s coverage on American Airlines provides insights into the company’s recent challenges and successes in the aviation sector. From the report “Can American Airlines Reclaim Its Throne In Corporate Travel?“, Baptista Research delves into American Airlines’ efforts to regain corporate travelers’ trust after a revenue loss in 2023. Despite facing investor concerns over guidance, American Airlines has demonstrated robust financial performance, recording record-breaking revenue and surpassing earnings expectations in recent quarters.
A look at American International Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for American International Group, the company seems to have a positive long-term outlook. With a strong momentum score of 5, AIG is showing promising signs of growth and market performance. Additionally, AIG scores well in terms of value with a score of 4, indicating that it could be considered an attractive investment option for those seeking undervalued stocks.
AIG’s scores for dividend, growth, and resilience are all solid at 3 each, suggesting stability and potential for future development. As an international insurance organization offering a range of services such as property-casualty insurance, life insurance, and retirement services, AIG continues to position itself as a reputable and established player in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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