- Adjusted Earnings Per Share (EPS) increased to $1.81 from $1.16 year-over-year, surpassing the estimate of $1.61.
- Adjusted Return on Equity (ROE) reached 9.7%, exceeding the forecast of 9%.
- Book value per share rose to $74.14 compared to $68.40 from the previous year, outperforming the estimated $71.63.
- General Insurance (GI) net premiums written slightly decreased by 0.8% year-over-year to $6.88 billion, below the anticipated $7.14 billion.
- GI experienced a catastrophe loss of $170 million.
- GI net investment income on an APTI basis saw a 17% rise year-over-year to $871 million, beating the projected $748.8 million.
- GI combined ratio improved to 89.3% from 92.5% year-over-year, ahead of the 90% estimate.
- Excluding catastrophe losses and development, the GI combined ratio was 88.4%, compared to 87.6% the previous year, and estimated at 87.2%.
- GI loss ratio decreased to 58.3% from 61% year-over-year, under the expected 59.7%.
- Excluding catastrophe losses and development, the GI loss ratio was 57.4%, up from 56.1% the previous year, versus a 56.9% estimate.
- GI expense ratio reduced slightly to 31% from 31.5% year-over-year, close to the expected 30.6%.
- Company remains positive about achieving long-term financial goals and delivering exceptional value.
American International Group on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been covering American International Group (AIG) extensively. Baptista Research‘s insightful report titled “American International Group (AIG) Is Using AI To Add To Its Competitive Advantage In Underwriting Precision; But Is It Enough?” highlights AIG’s first quarter of 2025 results, revealing a mix of achievements and challenges. AIG’s strategic moves, including the deconsolidation of Corebridge Financial in mid-2024, have reshaped its financial statements. The company reported an adjusted after-tax income of $702 million for the period, showcasing a dynamic performance that offers insights for potential investors.
In another favorable report by Value Investors Club, titled “American International Group (AIG) – Tuesday, Nov 12, 2024,” AIG is commended for repositioning itself as an industry leader with a renewed growth strategy and improved financial performance. The report underscores AIG’s strong leadership team and clear vision for the future, positioning the company to deliver value for customers and shareholders. These analyst reports convey a positive sentiment regarding AIG’s strategic direction and financial outlook, providing valuable insights for investors evaluating the company’s potential.
A look at American International Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
When looking at the Smartkarma Smart Scores for American International Group, the company seems to have a strong value proposition with a score of 4 out of 5. This indicates a favorable outlook on the company’s value in the long term. In terms of dividends, AIG scores a 3 out of 5, suggesting a decent dividend performance. However, growth and momentum scores are slightly lower at 2 and 3 respectively, indicating areas where improvements could be made. AIG’s resilience score of 3 reflects a moderate level of stability in the face of market fluctuations.
American International Group, Inc. operates as an international insurance organization catering to commercial, institutional, and individual customers. AIG offers a range of insurance products including property-casualty, life insurance, and retirement services. With a strong value score and moderate scores in dividends, resilience, and momentum, AIG appears to be well-positioned for the long term, although there may be opportunities to enhance growth prospects in the future.
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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