Article img

AIG Reports Second Quarter 2021 Financial Results

Published by:
Topics: Financial Results

General Insurance net premiums written grew 24% with Commercial Lines and Personal Insurance growth of 16% and 45%, respectively, from the prior year quarter...

  • Net income per diluted share of $0.11 compared to a loss of $9.15 in the prior year quarter and adjusted after-tax income attributable to AIG common shareholders* (AATI) per diluted share of $1.52 increased from $0.64 in the prior year quarter

 

  • On July 14, 2021 AIG entered into a strategic partnership whereby Blackstone agreed to purchase a 9.9% equity stake in AIG’s Life and Retirement Business for $2.2 billion in cash, manage specified Life and Retirement assets in the future, and separately purchase affordable housing assets for $5.1 billion in cash

 

  • AIG Board of Directors increased the share repurchase authorization to $6.0 billion, including approximately $0.9 billion that remained under the prior authorization

 

SECOND QUARTER NOTEWORTHY ITEMS

  • General Insurance adjusted pre-tax income (APTI) of $1.2 billion reflects improved underwriting results and higher net investment income; the combined ratio was 92.5, a 13.5 point improvement from the prior year quarter primarily due to lower catastrophe losses, net of reinsurance and reinstatement premiums.

 

  • The General Insurance accident year combined ratio, as adjusted*, was 91.1, a 3.8 point improvement from the prior year quarter due to improved North America and International Commercial Lines underwriting results.

 

  • Life and Retirement APTI was $1.1 billion reflecting strong net investment income and improved market conditions; Life and Retirement return on adjusted segment common equity* for the second quarter was 16.4%, on an annualized basis.

 

  • Net income attributable to AIG common shareholders was $91 million, or $0.11 per diluted common share, compared to a net loss of $7.9 billion, or $9.15 per common share, in the prior year quarter, which included the loss on sale of Fortitude Group Holdings LLC (Fortitude). The primary difference between GAAP and adjusted after-tax income is the accounting treatment of Fortitude net investment income and certain realized gains/losses.

 

  • AATI was $1.3 billion, or $1.52 per diluted common share, compared to $561 million, or $0.64 per diluted common share, in the prior year quarter.

 

  • As of June 30, 2021, book value per common share was $76.73, an increase of 0.4% from December 31, 2020. Adjusted book value per common share* was $60.07, an increase of 5.4% from December 31, 2020. Adjusted tangible book value per share* was $54.24, an increase of 6.0% from December 31, 2020.

 

  • Return on common equity (ROCE) and Adjusted ROCE* were 0.6% and 10.5%, respectively, on an annualized basis for the second quarter of 2021.

 

  • On July 14, 2021 AIG announced a strategic partnership with The Blackstone Group (Blackstone) whereby Blackstone agreed to purchase a 9.9% equity stake in AIG’s Life and Retirement business for $2.2 billion in cash, entered into a strategic asset management relationship to manage certain specified Life and Retirement general account assets in the future and agreed to acquire AIG’s interests in a U.S. affordable housing portfolio for approximately $5.1 billion in cash.

 

Full release here

See more
See less
Share fluctuations
Aviva
408.8
GBX
+1.7%
Everest Re
255.7
USD
+1.5%
Beazley
555.5
GBX
+0.5%
Allianz
184.0
USD
+1.3%
Enstar Group
198.1
USD
+1.1%
Tokio Marine
55.6
USD
-3.7%
The Hanover
126.8
USD
+1.5%
Chubb
186.7
USD
+0.8%
Hiscox
900.0
GBX
-0.2%
Travelers
160.0
USD
+0.6%
Hannover Re
73.3
USD
-1.1%
AIG
52.6
USD
+1.5%
See more
See less
Upcoming events