Earnings Results under Review: American International Group Inc (NYSE: AIG)

On Wednesday, Shares of American International Group Inc (NYSE: AIG) showed the bullish trend with a higher momentum of 0.58% and ended its trading session at $53.67. The company traded total volume of 1.95M shares as contrast to its average volume of 5.73M shares. The company has a market value of $48.73B and about 907.95M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $49.57 and reached the max level of $67.30.

American International Group, Inc. (AIG) recently stated net income of $938.0M, or $1.01 per diluted share, for the first quarter of 2018, contrast to net income of $1.20B, or $1.18 per diluted share, in the prior-year quarter. Adjusted after-tax income was $963.0M, or $1.04 per diluted share, for the first quarter of 2018, contrast to adjusted after-tax income of $1.40B, or $1.36 per diluted share, in the prior-year quarter.


General Insurance Results – First quarter adjusted pre-tax income of $510.0M reflected $376.0M of catastrophe losses mainly related to the California mudslides, U.S. winter storms and the Papua New Guinea earthquake, as well as $135.0M of severe losses. The first quarter results included net favorable prior year loss reserve development of $108.0M (1.6 points), driven by North America Commercial Lines contrast to $24.0M ((0.6) points) of net unfavorable prior year loss reserve development in the prior-year quarter. The first quarter of 2018 loss ratio was 67.2. The accident year loss ratio, as adjusted, was 63.1, essentially unchanged from full year 2017.

Life and Retirement Results – First quarter adjusted pre-tax income was $892.0M. Life and Retirement produced solid results with assets under administration or management at historically high levels in Individual Retirement, Group Retirement and Institutional Markets, because of strong equity market performance. Base net investment spreads declined incrementally, as expected, for Individual Retirement and Group Retirement because of the run-off of higher yielding assets and lower reinvestment yields. Adjusted pre-tax income benefited from $54.0M of non-recurring payments on structured securities.

Legacy – First quarter adjusted pre-tax income of $145.0M, contrast to $342.0M in the prior-year quarter, reflected lower income from fair value option assets, as well as the sale of the Life Settlements portfolio in 2017.

Capital and Liquidity – In the first quarter, AIG repurchased 5.40M common shares for $298.0M and warrants for $2.0M. As of May 2, 2018, about $2.00B remained under the share repurchase authorization.

As of March 31, 2018, AIG Parent liquidity stood at about $8.50B. In the first quarter, AIG Parent received about $1.10B of distributions from insurance auxiliaries in the form of cash and fixed maturity securities, counting tax sharing payments.

The Company offered net profit margin of -13.00%. ROE was recorded as -9.20% while beta factor was 1.23. The stock, as of recent close, has shown the weekly upbeat performance of 0.06% which was maintained at -9.92% in this year.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.