American International Group reported fourth-quarter adjusted net income of US$1.30 per diluted share, up 2% from a year earlier and beating estimates by 6 cents.
For the full year, adjusted net income was US$4.95 per share, reflecting a 12% increase year over year, or 28% on a comparable basis. Underwriting income was nearly US$2 billion with a combined ratio below 92% for the third consecutive year and an adjusted accident year combined ratio below 89%.
Meanwhile, full-year net premiums written increased by 6% on a comparable basis. Its global commercial division saw net premiums written rise by 7%, with an 88% retention rate and US$4.5 billion in new business.
Although it is too early to determine the full impact of the Los Angeles wildfires, Zaffino said they expect a net loss of about US$500 million, before reinstatement premiums, in connection with the event.
AIG also continued its capital management strategy in 2024, reducing debt by US$1.6 billion and returning US$8.1 billion to shareholders. This included US$6.6 billion in share repurchases, US$1 billion in dividends and a US$500 million preferred stock redemption.
The company ended the year with a debt-to-total capital ratio of 17% and parent liquidity of US$7.7 billion, supported by US$3.8 billion in proceeds from the sale of a 21.6% ownership stake in Corebridge to Nippon Life, reducing AIG’s ownership to 22.7%.
Meanwhile, AIG also launched reinsurance Syndicate 2478 at Lloyd’s through a multi-year strategic relationship with Blackstone. The syndicate, which began underwriting on January 1, is now a key part of AIG’s reinsurance strategy, complementing changes to reinsurance structures and terms, the company said.
Looking ahead, Zaffino stated that early 2025 reflects increased global volatility and complexity but emphasised AIG’s momentum. “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.”
