AIG posts Q2 earnings beat, delays Corebridge IPO on market volatility

Aug. 08, 2022 4:56 PM ETAmerican International Group, Inc. (AIG)BLKBy: Liz Kiesche, SA News Editor2 Comments

Workers Arrive At The Offices Of Troubled Insurance Company AIG

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American International Group (NYSE:AIG) stock slipped 0.3% in Monday after-hours trading after posting better-than-expected Q2 earnings and announcing that it's deferring its IPO of Corebridge Financial due to equity market volatility.

Q2 adjusted EPS of $1.19, exceeding the $1.13 consensus, dropped from $1.30 in Q1 and from $1.52 in Q2 2022.

Net investment income, on an adjusted pretax income basis, of $2.50B vs. $3.00B in Q1 and $3.18B in the year-ago quarter.

General insurance net premiums written of $9.58B rose 1% Y/Y. Combined ratio of 87.4% improved by 5.1 points from the same quarter and marked the first sub-90% combined ratio in more than 15 years.

General insurance adjusted pretax income of $1.36B increased from $1.19B in the year-ago quarter, reflecting an increase in underwriting income and combined ratio improvement, driven by higher premiums marked by higher renewal retentions, positive rate change and strong new business production, focused risk selection and improved terms and conditions as well as more favorable prior year development . Underwriting income of $799M climbed 73% from $463M a year ago.

Life and Retirement premiums and deposits were $7.10B in Q2, down 21% from $9.04B in the year-ago quarter.

Life and Retirement adjusted pretax income of $563M dropped from $1.12B a year ago, primarily due to the impact of higher interest rates, lower equity markets, and NII.

Adjusted tangible book value per share of $66.06, up 2% from $64.65 at March 31, 2022; book value per common share of $58.16, down 16% from $69.30 at March 31.

Adjusted return on common equity of 7.0%, annualized basis, vs. 7.6% in Q1 and 10.5% in the year-ago quarter.

During Q2, AIG (AIG) started transferring certain assets under management to BlackRock (BLK) in accordance with its recently announced asset management arrangement. AIG expects to transfer the majority of the remaining $150B of AUM to be transferred by the end of 2022.

Conference call on Aug. 9 at 8:30 AM ET.

Earlier, American International Group (AIG) non-GAAP EPS of $1.19 beats by $0.06

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