AIG posts decreased profits in 2023

AIG posts decreased profits in 2023 | Insurance Business Australia

Insurance News

AIG posts decreased profits in 2023

Figures down in the full year and fourth quarter

Insurance News

By
Terry Gangcuangco

It’s the turn of American International Group (AIG) to share its financial results for the quarter and year ended December 31, 2023.

Here’s how the global insurer fared in the two periods:

Metric

Q4 2023

Q4 2022

FY 2023

FY 2022

Net income attributable to AIG common shareholders

US$86 million

US$545 million

US$3.6 billion

US$10.2 billion

Adjusted pre-tax income (loss) – general insurance

US$1.4 billion

US$1.2 billion

US$5.4 billion

US$4.4 billion

Adjusted pre-tax income (loss) – life & retirement

US$957 million

US$852 million

US$3.8 billion

US$3.3 billion

Net investment income

US$3.9 billion

US$3.3 billion

US$14.6 billion

US$11.8 billion

Adjusted after-tax income attributable to AIG common shareholders

US$1.3 billion

US$1.1 billion

US$4.9 billion

US$4 billion

The decline in 2023 net income was mainly attributed to net realised losses largely related to Fortitude Re funds withheld embedded derivative at life & retirement as well as derivative activity.

Commenting on the numbers, AIG chair and chief executive Peter Zaffino said in a release: “In 2023, AIG delivered outstanding financial results, highlighted by excellent underwriting performance and the successful execution of multiple complex initiatives, while delivering exceptional value for our clients and stakeholders.

“Our substantial progress reflects the dedication and teamwork of our AIG colleagues around the world who have delivered on our objectives. The full-year adjusted after-tax income per diluted share increased 33% from the prior year to US$6.79.

“We have further repositioned AIG for the future with the divestitures of Validus Re and Crop Risk Services, and we enter 2024 with significant momentum.”

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