Investors Update: American International Group, Inc. (NYSE: AIG)

On 22 Nov 2019, American International Group, Inc. (NYSE: AIG) spotted trading -9.14% off 52-week high price. On the other end, the stock has been noted 47.40% away from the low price over the last 52-weeks. The stock changed 2.09% to recent value of $53.3. The stock transacted 4483427 shares during most recent day however it has an average volume of 3442.92K shares. The company has 881.95M of outstanding shares and 868.74M shares were floated in the market.

American International Group, Inc. (AIG) recently stated net income attributable to AIG ordinary shareholders of $648M, or $0.72 per diluted ordinary share, for the third quarter of 2019, contrast to a net loss attributable to AIG ordinary shareholders of $1.3B, or $1.41 per ordinary share, in the prior-year quarter. The improvement was primarily Because of pre-tax net realized capital gains of $929M contrast to pre-tax net realized capital losses of $511M in the prior-year quarter and a reduction in pre-tax net catastrophe losses of $1.1B contrast to the prior-year quarter. Adjusted after-tax income attributable to AIG ordinary shareholders was $505M, or $0.56 per diluted ordinary share, for the third quarter of 2019, contrast to an adjusted after-tax loss attributable to AIG ordinary shareholders of $301M, or $0.34 per ordinary share, in the prior-year quarter. The improvement was primarily Because of lower catastrophe losses contrast to the prior-year quarter.

THIRD QUARTER 2019 HIGHLIGHTS

General Insurance – Third quarter adjusted pre-tax income of $507M was comprised of net investment income of $756M and an underwriting loss of $249M. The underwriting loss was driven by net pre-tax catastrophe losses of $497M, including $254M for Typhoon Faxai and $135M for Hurricane Dorian, and resulted in a combined ratio of 103.7 inclusive of 7.5 points of catastrophe losses net of reinstatement premiums. Net favorable previous year loss reserve development totaled $3M. The accident year combined ratio, as adjusted, was 95.9, comprised of a 61.5 accident year loss ratio, as adjusted*, an improvement of 210 basis points from the prior-year quarter, and an expense ratio of 34.4, an improvement of 140 basis points from the prior-year quarter. The decrease in accident year loss ratio, as adjusted, was Because of the favorable impact from our underwriting actions, changes in business mix, strong results from Glatfelter, improved loss performance across a number of lines, and changes in reinsurance. The reduction in the third quarter expense ratio primarily reflected improvement in the General operating expense (GOE) ratio as a result of continued expense discipline.

Life and Retirement – Third quarter adjusted pre-tax income of $646M included the impact of the yearly actuarial assumption update, which was a charge of $143M in the third quarter of 2019 contrast to $98M in the prior-year quarter and elevated mortality in Life Insurance. Net flows while negative, improved resulting from higher Fixed and Index Annuities new business, as well as lower Group Retirement surrenders and withdrawals. Life and Retirement’s Adjusted return on ordinary equity (Adjusted ROCE) * for the third quarter of 2019 was 10.1% or about 12.5% not including the impact of the yearly actuarial assumption update.

Net Investment Income – Third quarter net investment income increased 0.4% to $3.4B with an 8% increase in interest, dividends and other investment income, slightly offset by lower alternative investment income, which declined to $115M contrast to $329M in the prior-year quarter. Annualized yield for alternative investment income was 5% and 13% for the third quarter and nine months ended September 30, 2019, respectively, slightly below AIG’s 8% annualized assumption for the quarter but higher for the nine months ended September 30, 2019.

Its earnings per share (EPS) expected to touch remained -93.90% for this year while earning per share for the next 5-years is expected to reach at 67.46%. AIG has an operating margin of 9.90% while its profit margin remained 3.50% for the last 12 months. The price moved ahead of -1.29% from the mean of 20 days, -2.39% from mean of 50 days SMA and performed 4.18% from mean of 200 days price. Company’s performance for the week was -1.17%, 0.76% for month and YTD performance remained 35.24%.

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