Dan Kitwood
American International Group (NYSE:AIG) stock gained 3.0% in Wednesday after-hours trading after the insurance company's Q1 earnings beat Wall Street expectations and its board declared a new stock buyback program.
The company's board boosted its share repurchase authorization to $10.0B, effective May 1.
Q1 adjusted EPS of $1.77, topping the $1.66 consensus estimate, fell from $1.79 in Q4 2023 and $1.63 in Q1 2023. Adjusted pretax income of $1.94B vs. $2.00B in the previous quarter and $1.64B a year ago.
Q1 net investment income, on an adjusted pretax income basis, rose to $3.47B from $3.46B in the prior quarter and $3.08B a year ago.
"General Insurance had another quarter of impressive Commercial Lines profitability benefiting from continued strong underwriting performance and low levels of catastrophe losses as we continue to manage volatility in our results," said AIG Chairman and CEO Peter Zaffino.
Q1 General Insurance adjusted pretax income of $1.36B rose from $1.25B a year ago. Accident year combined ratio, as adjusted, was 88.4% vs. 87.9% in Q4 2023 and 88.7% in Q1 2023.
As a result of the 2023 divested businesses and changes in reinsurance structures, General Insurance net premiums written decreased 35% year-over-year, but increased on a comparable basis, Zaffino said.
Life and Retirement adjusted pretax income of $991M vs. $886M in Q1 2023. The segment's net investment income on an adjusted pretax income basis rose 16% Y/Y to $2.65B.
Adjusted book value per common share of $77.79 at March 31, 2024, rose from $76.65 at Dec. 31, 2023.
Q1 adjusted return on common equity was 9.3% vs. 9.4% in the prior quarter and 8.7% a year earlier.
Conference call on May 2 at 8:30 AM ET.
Earlier, American International Group non-GAAP EPS of $1.77 beats by $0.11