AIG reports Q4’24 net income of $898m as GI net premiums climb 6%

AIG has reported net income attributable to common shareholders of $898 million for Q4 2024, a significant increase from $86 million in the same period of 2023, while General Insurance net premiums written (NPW) rose to $6.1 billion.

It is worth noting that in Q4 2024, AIG realigned its organisational structure and the composition of its reportable segments to reflect changes in how it manages its operations, specifically the level at which its chief operating decision-makers regularly review operating results and allocate resources. AIG thus has three reportable segments: North America Commercial, International Commercial, and Global Personal.

General Insurance consists of the firm’s three reportable segments and the net investment income related to its insurance operations.

According to the firm, the increase in General Insurance NPW to $6.1 billion was driven by 8% growth in Global Commercial and 5% growth in Global Personal Insurance.

AIG’s Q4 2024 underwriting income was $454 million, a 29% decrease from Q4 2023, due principally to higher catastrophe charges.

The firm’s total Q4 2024 catastrophe-related charges were $325 million, representing 5.5 loss ratio points, of which $301 million was in North America Commercial including losses from Hurricane Milton and adjustments for prior quarters’ events, largely from Hurricane Helene. AIG’s combined ratio for Q4 2024 was 92.5%, compared to 89.1% in Q4 2023.

Turning to the full-year figures, General Insurance NPW for 2024 were $23.9 billion, primarily driven by 7% growth in Global Commercial. The full-year combined ratio was 91.8%, compared to 90.6% in 2023.

AIG’s net loss attributable to common shareholders in 2024 was $1.4 billion, down from a net income of $3.6 billion in 2023.

According to the firm, the decrease was primarily attributable to a reduction in net income from discontinued operations as a result of the change in accounting following the deconsolidation of Corebridge.

Peter Zaffino, AIG Chairman & Chief Executive Officer, commented, “2024 was an outstanding year of accomplishments for AIG in which we successfully executed multiple complex strategic and operational priorities, delivered outstanding financial results, and created exceptional value for our clients and stakeholders.

“We strengthened the company’s capital structure, improved our financial performance, and achieved a historic milestone with the deconsolidation of Corebridge Financial, which enabled us to organize our business into three distinct operating segments.”

Zaffino continued, “We made significant progress on our capital management strategy in 2024, reducing our debt by $1.6 billion while also returning $8.1 billion of capital to shareholders, including $6.6 billion of share repurchases, $1.0 billion of dividends, and $500 million preferred stock redemption.

“We ended the year with a debt-to-total capital ratio of 17.0% and parent liquidity of $7.7 billion, supported by the $3.8 billion of proceeds from the sale of a 21.6% ownership stake in Corebridge to Nippon Life and other transactions that have reduced our ownership to 22.7%.

“We successfully launched our reinsurance Syndicate 2478 at Lloyd’s through a multi-year strategic relationship with Blackstone. The syndicate began underwriting on January 1, 2025, and now serves as a key component of AIG’s reinsurance strategy, which includes enhancements to the underlying structures and terms of many of the reinsurance treaties we placed at January 1.

“While the early days of 2025 reflect increased global volatility and complexity, AIG has entered a new era, and we are moving forward with strong momentum on behalf of our colleagues, customers, partners, and stakeholders.

“With our focus on disciplined capital management, sustained underwriting excellence, and expense management, we are well on track to deliver 10% plus core operating return on equity for full year 2025.”

Shedding some light on the impacts of the California wildfires, Zaffino added, “Against the backdrop of an extremely challenging natural catastrophe environment, I want to acknowledge the devastating impact of the recent wildfires in California on the families, communities, and businesses affected.

“Our local teams remain on the ground, providing critical expertise and support to our customers and partners – this is our Purpose. This tragic event serves as a stark reminder of the escalating risks and evolving complicated environment that we operate in.

“Though it is still too early to determine the full impact of the California wildfires, we estimate the net loss for AIG to be approximately $500 million, before reinstatement premiums.”

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