- Adjusted earnings per share (EPS) for AIG were $1.30, surpassing both last year’s $1.28 and the estimate of $1.23.
- Adjusted return on equity (ROE) reached 7.2%, higher than last year’s 6.5% and close to the estimate of 7.17%.
- The book value per share increased to $70.16, up from $65.14 the previous year, but below the estimate of $71.84.
- General Insurance (GI) net premiums written amounted to $5.95 billion, marking a 7.2% year-over-year increase, slightly under the estimated $5.99 billion.
- GI net investment income was $779 million, a 2% decrease year-over-year, yet above the estimated $758.8 million.
- The GI combined ratio was 92.5%, compared to the estimate of 92.3%.
- The GI combined ratio excluding catastrophe losses and development came in at 88.6%, slightly over the estimate of 88.3%.
- GI loss ratio was 59.7%, an increase from last year’s 56.5%, yet better than the estimated 60.9%.
- The GI loss ratio excluding catastrophe losses and development was 55.8%, versus 55.3% last year, and under the estimate of 56.3%.
- GI expense ratio stood at 32.8%, slightly up from last year’s 32.6%, but higher than the estimate of 31.6%.
- AIG estimates a net loss of approximately $500 million from the California wildfires, excluding reinstatement premiums.
- Fourth-quarter catastrophe-related charges were $325 million, adding 5.5 points to the loss ratio, with $301 million from North America Commercial, influenced by hurricanes Milton and Helene.
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American International Group on Smartkarma
Analyst coverage of American International Group on Smartkarma reflects a positive sentiment towards the company’s transformation and success story. In a report by Business Breakdowns, Belle Kannapell and Jay Debernardi discuss AIG’s impressive turnaround post-financial crisis, highlighting its profitability and strategic divestments. The company’s innovative leadership under Peter Zafino has led to a focus on specialty insurance, resulting in top industry returns.
Additionally, Baptista Research provides insights on American Airlines Group Inc., showcasing a bullish outlook on the company’s network strategy optimization and growth drivers. Despite operational disruptions, the airline reported strong financial performance in the third quarter of 2024, exceeding earnings guidance and demonstrating positive strategic adjustments for future success.
A look at American International Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
Analysts at Smartkarma have assigned American International Group a mix of scores across various factors, hinting at a promising long-term outlook. With a solid value score of 4 and a strong momentum score of 4, AIG shows potential for growth and value appreciation over time. While the dividend, growth, and resilience scores come in at a moderate 3, they still indicate a stable and consistent performance expected from the company. The overall mix of scores suggests that AIG may be poised for sustained growth and value creation in the foreseeable future.
American International Group, Inc., an international insurance organization catering to commercial, institutional, and individual customers, offers property-casualty insurance, life insurance, and retirement services. With a blend of strong value and momentum scores alongside moderate ratings in other areas, AIG appears well-positioned to navigate the complexities of the insurance industry and potentially thrive in the long run, providing investors with a promising outlook for 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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