AMERICAN INTERNATIONAL GROUP INC
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Consolidated Results of Operations
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three months ended March 31, 2025 and 2024. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.
For information regarding the critical accounting estimates that affect our results of operations, see Critical Accounting Estimates in this MD&A and Part II, Item 7. MD&A – Critical Accounting Estimates in the 2024 Annual Report.
The following table presents our consolidated results of operations and other key financial metrics:
| Three Months Ended March 31, · PercentageChange | ||||
|---|---|---|---|---|
| (in millions) · 2025 · 2024 | ||||
| Revenues: | ||||
| Premiums | $5,770 | $5,871 | (2) | % |
| Net investment income: | ||||
| Net investment income - excluding Fortitude Re funds withheld assets | 1,065 | 940 | 13 | |
| Net investment income - Fortitude Re funds withheld assets | 40 | 39 | 3 | |
| Total net investment income | 1,105 | 979 | 13 | |
| Net realized losses: | ||||
| Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative | (60) | (59) | (2) | |
| Net realized losses on Fortitude Re funds withheld assets | (2) | (19) | 89 | |
| Net realized losses on Fortitude Re funds withheld embedded derivative | (41) | (9) | (356) | |
| Total net realized losses | (103) | (87) | (18) | |
| Other income | 11 | — | NM | |
| Total revenues | 6,783 | 6,763 | — | |
| Benefits, losses and expenses: | ||||
| Losses and loss adjustment expenses incurred | 3,794 | 3,513 | 8 | |
| Amortization of deferred policy acquisition costs | 825 | 838 | (2) | |
| General operating and other expenses | 1,115 | 1,238 | (10) | |
| Interest expense | 92 | 116 | (21) | |
| Net gain on divestitures and other | (3) | — | NM | |
| Total benefits, losses and expenses | 5,823 | 5,705 | 2 | |
| Income from continuing operations before income tax expense | 960 | 1,058 | (9) | |
| Income tax expense | 262 | 261 | — | |
| Income from continuing operations | 698 | 797 | (12) | |
| Income from discontinued operations, net of income taxes | — | 803 | NM | |
| Net income | 698 | 1,600 | (56) | |
| Less: Net income attributable to noncontrolling interests | — | 384 | NM | |
| Net income attributable to AIG | 698 | 1,216 | (43) | |
| Less: Dividends on preferred stock and preferred stock redemption premiums | — | 22 | NM | |
| Net income attributable to AIG common shareholders | $698 | $1,194 | (42) | % |
| (in millions, except per share data) | March 31, 2025 | December 31, 2024 |
|---|---|---|
| Balance sheet data: | ||
| Total assets | $161,864 | $161,322 |
| Long-term debt | 8,596 | 8,764 |
| Total AIG shareholders’ equity | 41,431 | 42,521 |
| Book value per share | 71.38 | 70.16 |
| Adjusted book value per share | 74.45 | 73.79 |
| Core operating book value per share | 61.72 | 61.75 |
| AIG | First Quarter 2025 Form 10-Q | 51 |
|---|
NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS
Three Months Ended March 31, 2025 and 2024 Comparison
Net income (loss) attributable to AIG common shareholders decreased $496 million due to the following:
a decrease in Income (loss) from discontinued operations, net of income taxes of $803 million as a result of the deconsolidation of Corebridge; and
a decrease in underwriting income primarily driven by higher catastrophe losses of $419 million partially offset by favorable prior year reserve development of $33 million, which does not reflect the benefit of recoveries under a retroactive adverse development cover, as well as lower expense ratio.
The decrease in Net income (loss) attributable to AIG common shareholders was partially offset by the following:
a decrease in net income attributable to noncontrolling interest of $384 million primarily driven by Corebridge; and
an increase in Net investment income of $126 million primarily driven by dividends received from Corebridge of $31 million and changes in its stock price of $209 million, partially offset by a decrease in the fair value of equity securities of $79 million.
INCOME TAX EXPENSE ANALYSIS
For the three months ended March 31, 2025 and 2024, the effective tax rate on income (loss) from continuing operations was 27.3 percent and 24.7 percent, respectively.
For additional information, see Note 16 to the Condensed Consolidated Financial Statements.
NON-GAAP RECONCILIATIONS
The following table presents reconciliations of Book value per share to Adjusted book value per share and Core operating book value per share, which are non-GAAP measures. For additional information, see Use of Non-GAAP Measures.
| March 31, | December 31, | |
|---|---|---|
| (in millions, except per share data) | 2025 | 2024 |
| Total AIG common shareholders' equity | $41,431 | $42,521 |
| Less: Investments related AOCI | (2,443) | (2,872) |
| Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets | (664) | (667) |
| Subtotal: Investments AOCI | (1,779) | (2,205) |
| AIG adjusted common shareholders' equity | $43,210 | $44,726 |
| Total AIG common shareholders' equity | $41,431 | $42,521 |
| Less: AIG's ownership interest in Corebridge | 4,018 | 3,810 |
| Less: Investments related AOCI - AIG | (2,443) | (2,872) |
| Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets - AIG | (664) | (667) |
| Subtotal: Investments AOCI - AIG | (1,779) | (2,205) |
| Less: Deferred tax assets | 3,370 | 3,489 |
| AIG core operating shareholders' equity | $35,822 | $37,427 |
| Total common shares outstanding | 580.4 | 606.1 |
| Book value per share | $71.38 | $70.16 |
| Adjusted book value per share | 74.45 | 73.79 |
| Core operating book value per share | 61.72 | 61.75 |
| 52 | AIG | First Quarter 2025 Form 10-Q |
The following table presents reconciliations of Return on equity to Adjusted return on equity and Core operating return on equity, which are non-GAAP measures. For additional information, see Use of Non-GAAP Measures.
| Three Months EndedMarch 31, · Year EndedDecember 31, | |||||||
|---|---|---|---|---|---|---|---|
| (dollars in millions) · 2025 · 2024 · 2024 | |||||||
| Actual or annualized net income (loss) attributable to AIG common shareholders | $2,792 | $4,776 | $(1,426) | ||||
| Actual or annualized adjusted after-tax income attributable to AIG common shareholders | $2,808 | $3,448 | $3,254 | ||||
| Average AIG common shareholders' equity | $41,976 | $44,126 | $44,051 | ||||
| Less: Average investments AOCI | (1,992) | (9,534) | (5,132) | ||||
| Average AIG adjusted common shareholders' equity | $43,968 | $53,660 | $49,183 | ||||
| Average AIG common shareholders' equity | $41,976 | $44,126 | $44,051 | ||||
| Less: Average AIG's ownership interest in Corebridge | 3,914 | 6,666 | 6,770 | ||||
| Less: Average Investments AOCI - AIG | (1,992) | (2,581) | (2,351) | ||||
| Less: Average deferred tax assets | 3,430 | 4,233 | 3,998 | ||||
| Average AIG core operating shareholders' equity | $36,624 | $35,808 | $35,634 | ||||
| Return on equity | 6.7 | % | 10.8 | % | (3.2) | % | |
| Adjusted return on equity | 6.4 | 6.4 | 6.6 | ||||
| Core operating return on equity | 7.7 | 9.6 | 9.1 | ||||
The following table presents a reconciliation of pre-tax income (loss)/net income (loss) attributable to AIG to adjusted pre-tax income (loss)/adjusted after-tax income (loss) attributable to AIG:
| Three Months Ended March 31, · 2025 · 2024 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions, except per common share data) · Pre-tax · Total Tax(Benefit)Charge · Non-controllingInterests(a) · AfterTax · Pre-tax · Total Tax(Benefit)Charge · Non-controllingInterests(a) · AfterTax | ||||||||||||||||||
| Pre-tax income/net income, including noncontrolling interests | $960 | $262 | $— | $698 | $1,058 | $261 | $— | $1,600 | ||||||||||
| Noncontrolling interests(a) | — | — | (384) | (384) | ||||||||||||||
| Pre-tax income/net income attributable to AIG - including discontinued operations | $960 | $262 | $— | $698 | $1,058 | $261 | $(384) | $1,216 | ||||||||||
| Dividends on preferred stock and preferred stock redemption premiums | — | 22 | ||||||||||||||||
| Net income attributable to AIG common shareholders | $698 | $1,194 | ||||||||||||||||
| Changes in uncertain tax positions and other tax adjustments | 6 | — | (6) | 3 | — | (3) | ||||||||||||
| Deferred income tax valuation allowance releases | 2 | — | (2) | 5 | — | (5) | ||||||||||||
| Changes in the fair values of equity securities and AIG's investment in Corebridge | (217) | (46) | — | (171) | (88) | (19) | — | (69) | ||||||||||
| Loss on extinguishment of debt and preferred stock redemption premiums | — | — | — | — | — | — | — | 15 | ||||||||||
| Net investment income on Fortitude Re funds withheld assets | (40) | (8) | — | (32) | (39) | (8) | — | (31) | ||||||||||
| Net realized losses on Fortitude Re funds withheld assets | 2 | — | — | 2 | 19 | 4 | — | 15 | ||||||||||
| Net realized losses on Fortitude Re funds withheld embedded derivative | 41 | 9 | — | 32 | 9 | 2 | — | 7 | ||||||||||
| Net realized (gains) losses(b) | 66 | (38) | — | 104 | 55 | 7 | — | 48 | ||||||||||
| Income from discontinued operations | — | (803) | ||||||||||||||||
| Net gain on divestitures and other | (3) | (1) | — | (2) | — | — | — | — | ||||||||||
| Non-operating litigation reserves and settlements | (11) | (2) | — | (9) | — | — | — | — | ||||||||||
| Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 9 | 2 | — | 7 | 2 | — | — | 2 | ||||||||||
| Net loss reserve discount charge | 17 | 3 | — | 14 | 76 | 16 | — | 60 | ||||||||||
| Net results of businesses in run-off(c) | (5) | (1) | — | (4) | (7) | (1) | — | (6) | ||||||||||
| Non-operating pension expense | 5 | 1 | — | 4 | — | — | — | — | ||||||||||
| Integration and transaction costs associated with acquiring or divesting businesses | 5 | 1 | — | 4 | (3) | (1) | — | (2) | ||||||||||
| Restructuring and other costs | 76 | 16 | — | 60 | 67 | 14 | — | 53 | ||||||||||
| Non-recurring costs related to regulatory or accounting changes | 4 | 1 | — | 3 | 4 | 1 | — | 3 | ||||||||||
| Noncontrolling interests(a) | — | — | 384 | 384 | ||||||||||||||
| Adjusted pre-tax income (loss)/Adjusted after-tax income (loss) attributable to AIG common shareholders | $909 | $207 | $— | $702 | $1,153 | $284 | $— | $862 | ||||||||||
| Weighted average diluted shares outstanding | 599.2 | 688.0 | ||||||||||||||||
| Income per common share attributable to AIG common shareholders (diluted) | $1.16 | $1.74 | ||||||||||||||||
| Adjusted after-tax income per common share attributable to AIG common shareholders (diluted) | $1.17 | $1.25 | ||||||||||||||||
(a)Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge is consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in Income (loss) from discontinued operations, net of income taxes.
| AIG | First Quarter 2025 Form 10-Q | 53 |
|---|
(b)Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets.
(c)In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off businesses previously reported in Other Operations from Adjusted pre-tax income. Historical results have been recast to reflect these changes.
PRE-TAX INCOME (LOSS) COMPARISON
Pre-tax income was $960 million and $1.1 billion in the three months ended March 31, 2025 and 2024, respectively.
For the main drivers impacting AIG’s results of operations, see – Net Income (Loss) Attributable to AIG Common Shareholders above.
ADJUSTED PRE-TAX INCOME (LOSS) COMPARISON
Adjusted pre-tax income was $909 million and $1.2 billion in the three months ended March 31, 2025 and 2024, respectively.
For the main drivers impacting AIG’s adjusted pre-tax income (loss), see Business Segment Operations.
The following table presents a reconciliation of General Insurance and Other Operations Net investment income and other/pre-tax income (loss) to Net investment income and other, APTI basis/adjusted pre-tax income (loss):
| Three Months Ended March 31, · 2025 · 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| General Insurance | Other Operations | General Insurance | Other Operations | |||||
| (in millions) | NetInvestmentIncomeand Other | Pre-taxIncome(Loss) | NetInvestmentIncomeand Other | Pre-taxIncome(Loss) | NetInvestmentIncomeand Other | Pre-taxIncome(Loss) | NetInvestmentIncomeand Other | Pre-taxIncome(Loss) |
| Net investment income and other/Pre-tax income (loss) | $756 | $853 | $360 | $107 | $814 | $1,191 | $165 | $(133) |
| Consolidation and Eliminations | — | — | (1) | — | — | — | (3) | — |
| Other income (expense) - net | — | — | (9) | — | (12) | — | 8 | — |
| Changes in the fair values of equity securities and AIG's investment in Corebridge | (20) | (20) | (197) | (197) | (35) | (35) | (53) | (53) |
| Net investment income on Fortitude Re funds withheld assets | 1 | 1 | (41) | (41) | — | — | (39) | (39) |
| Net realized (gains) losses on Fortitude Re funds withheld assets | — | 2 | — | — | — | — | — | 19 |
| Net realized (gains) losses on Fortitude Re funds withheld embedded derivative | — | — | — | 41 | — | — | — | 9 |
| Net realized (gains) losses | (1) | 53 | 3 | 13 | (5) | 88 | (2) | (33) |
| Net loss (gain) on divestitures and other | — | 6 | — | (9) | — | — | — | — |
| Non-operating litigation reserves and settlements | — | — | — | (11) | — | — | — | — |
| Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements | — | 14 | — | (5) | — | 7 | — | (5) |
| Net loss reserve discount (benefit) charge | — | 17 | — | — | — | 76 | — | — |
| Net results of businesses in run-off | — | — | (5) | (5) | — | — | (3) | (7) |
| Non-operating pension expense | — | 4 | — | 1 | — | — | — | — |
| Integration and transaction costs associated with acquiring or divesting businesses | — | — | — | 5 | — | — | — | (3) |
| Restructuring and other costs | — | 45 | — | 31 | — | 27 | — | 40 |
| Non-recurring costs related to regulatory or accounting changes | — | 4 | — | — | — | 4 | — | — |
| Net investment income and other, APTI basis/Adjusted pre-tax income (loss) | $736 | $979 | $110 | $(70) | $762 | $1,358 | $73 | $(205) |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.