AIG Files 10-Q for Period Ending March 31, 2024

Ticker: AIG · Form: 10-Q · Filed: May 2, 2024 · CIK: 5272

Sentiment: neutral

Topics: AIG, 10-Q, Quarterly Report, Insurance, Financials

TL;DR

<b>American International Group (AIG) filed its Q1 2024 10-Q report on May 2, 2024, detailing financial performance for the quarter ending March 31, 2024.</b>

AI Summary

AMERICAN INTERNATIONAL GROUP, INC. (AIG) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Filing is a 10-Q for American International Group, Inc. (AIG) for the period ending March 31, 2024. The filing includes financial data for Q1 2024. Key dates include the filing date of May 2, 2024, and the period of report as March 31, 2024. The company's fiscal year ends on December 31. AIG is incorporated in Delaware and operates in the Fire, Marine & Casualty Insurance sector.

Why It Matters

For investors and stakeholders tracking AMERICAN INTERNATIONAL GROUP, INC., this filing contains several important signals. This filing provides investors and analysts with the latest quarterly financial results and operational updates for AIG, crucial for assessing the company's performance and outlook. Understanding AIG's financial position and any changes from the previous reporting period is essential for making informed investment decisions in the insurance sector.

Risk Assessment

Risk Level: medium — AMERICAN INTERNATIONAL GROUP, INC. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains routine financial information. However, the insurance industry is subject to various market and regulatory risks that could impact AIG's performance, though specific details are not provided in this header information.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the full 10-Q filing to identify specific performance drivers and potential risks.

Key Numbers

Key Players & Entities

FAQ

When did AMERICAN INTERNATIONAL GROUP, INC. file this 10-Q?

AMERICAN INTERNATIONAL GROUP, INC. filed this Quarterly Report (10-Q) with the SEC on May 2, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by AMERICAN INTERNATIONAL GROUP, INC. (AIG).

Where can I read the original 10-Q filing from AMERICAN INTERNATIONAL GROUP, INC.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by AMERICAN INTERNATIONAL GROUP, INC..

What are the key takeaways from AMERICAN INTERNATIONAL GROUP, INC.'s 10-Q?

AMERICAN INTERNATIONAL GROUP, INC. filed this 10-Q on May 2, 2024. Key takeaways: Filing is a 10-Q for American International Group, Inc. (AIG) for the period ending March 31, 2024.. The filing includes financial data for Q1 2024.. Key dates include the filing date of May 2, 2024, and the period of report as March 31, 2024..

Is AMERICAN INTERNATIONAL GROUP, INC. a risky investment based on this filing?

Based on this 10-Q, AMERICAN INTERNATIONAL GROUP, INC. presents a moderate-risk profile. The filing is a standard quarterly report (10-Q) which typically contains routine financial information. However, the insurance industry is subject to various market and regulatory risks that could impact AIG's performance, though specific details are not provided in this header information.

What should investors do after reading AMERICAN INTERNATIONAL GROUP, INC.'s 10-Q?

Review the detailed financial statements and management's discussion and analysis within the full 10-Q filing to identify specific performance drivers and potential risks. The overall sentiment from this filing is neutral.

How does AMERICAN INTERNATIONAL GROUP, INC. compare to its industry peers?

AIG operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by significant regulatory oversight and exposure to economic cycles and catastrophic events.

Are there regulatory concerns for AMERICAN INTERNATIONAL GROUP, INC.?

As a publicly traded insurance company, AIG is subject to regulations from the SEC and various state and international insurance authorities, requiring adherence to specific financial reporting and operational standards.

Industry Context

AIG operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by significant regulatory oversight and exposure to economic cycles and catastrophic events.

Regulatory Implications

As a publicly traded insurance company, AIG is subject to regulations from the SEC and various state and international insurance authorities, requiring adherence to specific financial reporting and operational standards.

What Investors Should Do

  1. Analyze AIG's revenue streams and profitability for Q1 2024.
  2. Assess the company's financial health, including liquidity and solvency ratios.
  3. Identify any new or evolving risk factors disclosed in the full report.

Key Dates

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 10-K annual report.

Filing Stats: 4,777 words · 19 min read · ~16 pages · Grade level 18.2 · Accepted 2024-05-02 15:04:33

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information ITEM 1

Financial Statements

Financial Statements 2 Note 1. Basis of Presentation 8 Note 2. Summary of Significant Accounting Policies 9 Note 3. Segment Information 10 Note 4. Held-For-Sale Classification 12 Note 5. Fair Value Measurements 13 Note 6. Investments 27 Note 7. Lending Activities 34 Note 8. Reinsurance 37 Note 9. Deferred Policy Acquisition Costs 39 Note 10. Variable Interest Entities 40 Note 11. Derivatives and Hedge Accounting 42 Note 12. Insurance Liabilities 46 Note 13. Market Risk Benefits 56 Note 14. Separate Account Assets and Liabilities 57 Note 15. Contingencies, Commitments and Guarantees 58 Note 16. Equity 59 Note 17. Earnings Per Common Share (EPS) 63 Note 18. Income Taxes 64 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 67 Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future Results 67 Use of Non-GAAP Measures 70 Critical Accounting Estimates 72 Executive Summary 73 Consolidated Results of Operations 76 Business Segment Operations 80 Investments 97 Insurance Reserves 106 Liquidity and Capital Resources 112 Enterprise Risk Management 119 Glossary 120 Acronyms 122 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 123 ITEM 4

Controls and Procedures

Controls and Procedures 123

– Other Information

Part II – Other Information ITEM 1

Legal Proceedings

Legal Proceedings 124 ITEM 1A

Risk Factors

Risk Factors 124 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 124 ITEM 5 Other Information 125 ITEM 6 Exhibits 125

Signatures

Signatures 126 AIG | First Quarter 2024 Form 10-Q 1 TABLE OF CONTENTS

– Financial Information

Part I – Financial Information

| Financial Statements

Item 1. | Financial Statements American International Group, Inc. Condensed Consolidated Balance Sheets (unaudited) (in millions, except for share data) March 31, 2024 December 31, 2023 Assets: Investments: Fixed maturity securities: Bonds available for sale, at fair value, net of allowance for credit losses of $ 125 in 2024 and $ 162 in 2023 (amortized cost: 2024 - $ 255,067 ; 2023 - $ 253,035 )* $ 232,487 $ 231,733 Other bond securities, at fair value (See Note 6)* 5,403 5,241 Equity securities, at fair value (See Note 6)* 797 728 Mortgage and other loans receivable, net of allowance for credit losses of $ 38,501 in 2024 and $ 38,473 in 2023* 52,475 51,553 Other invested assets (portion measured at fair value: 2024 - $ 11,510 ; 2023 - $ 11,733 )* 15,977 16,217 Short-term investments, including restricted cash of $ 4 in 2024 and $ 4 in 2023 (portion measured at fair value: 2024 - $ 8,487 ; 2023 - $ 10,772 )* 15,077 17,200 Total investments 322,216 322,672 Cash* 1,816 2,155 Accrued investment income* 2,698 2,588 Premiums and other receivables, net of allowance for credit losses and disputes of $ 134 in 2024 and $ 139 in 2023 11,293 10,561 Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes of $ 0 in 2024 and $ 0 in 2023 29,732 30,612 Reinsurance assets - other, net of allowance for credit losses and disputes of $ 224 in 2024 and $ 236 in 2023 38,833 36,914 Deferred income taxes 14,376 14,445 Deferred policy acquisition costs 12,111 12,085 Market risk benefit assets, at fair value 1,172 912 Other assets, net of allowance for credit losses of $ 49 in 2024 and $ 49 in 2023, including restricted cash of $ 43 in 2024 and $ 45 in 2023 (portion measured at fair value: 2024 - $ 705 ; 2023 - $ 754 )* 12,313 13,089 Separate account assets, at fair value 95,173 91,005 Assets held for sale 2,388 2,268 Total assets $ 544,121 $ 539,306 Liabilities: Liability for unpaid losses and loss adjustment expenses, inclu

| Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation 1. Basis of Presentation American International Group, Inc. (AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners. Unless the context indicates otherwise, the terms "AIG," "we," "us," "our" or "the Company" mean American International Group, Inc. and its consolidated subsidiaries, and the term "AIG Parent" means American International Group, Inc. and not any of its consolidated subsidiaries. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the 2023 Annual Report). The condensed consolidated financial information as of December 31, 2023 included herein has been derived from the audited Consolidated Financial Statements in the 2023 Annual Report. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Operating results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2024 and prior to the issuance of these Condensed Consolidated Financial Statements. SALES/DISPOSALS OF ASSETS AND BUSINESSES AIG Life Limi

| Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation USE OF ESTIMATES The preparation of financial statements in accordance with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: loss reserves; valuation of future policy benefit liabilities and recognition of measurement gains and losses; valuation of market risk benefits (MRBs) related to guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products; valuation of embedded derivative liabilities for fixed index annuity and index universal life products; reinsurance assets, including the allowance for credit losses and disputes; goodwill impairment; allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities; fair value measurements of certain financial assets and financial liabilities; and income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. 2. Summary of Significant Accounting Policies ACCOUNTING STANDARDS ADOPTED DURING 2024 Fair Value Measurement On June 30, 2022, the Financial Accounting Standards Board (FASB) issued an accounting standards update to address diversity in practice by clarifying that a contractual sale restriction should not be considered in the measurement of the fair value of an equity security. It also requ

| Notes to Condensed Consolidated Financial Statements (unaudited) | 3. Segment Information

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3. Segment Information 3. Segment Information We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources, as follows: GENERAL INSURANCE General Insurance business is presented as two operating segments: North America – consists of insurance businesses in the United States, Canada and Bermuda. International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Underwriting Ltd. as well as AIG's Global Specialty business. North America and International operating segments consist of the following products: – Commercial Lines – consists of Property, Liability, Financial Lines and Specialty. – Personal Insurance – consists of Accident & Health and Personal Lines. For further discussion on recent activity in the General Insurance business, see Note 1 to the Consolidated Financial Statements in the 2023 Annual Report. LIFE AND RETIREMENT Life and Retirement business is presented as four operating segments: Individual Retirement – consists of fixed annuities, fixed index annuities and variable annuities. Group Retirement – consists of recordkeeping, plan administration and compliance services, financial planning and advisory solutions offered to employer-defined contribution plan participants, along with proprietary and limited non-proprietary annuities and advisory and brokerage products offered outside of plans. Life Insurance – primary products in the U.S. include term life and universal life insurance. Corebridge previously announced agreements to sell Laya Healthcare Limited (Laya) and AIG Life. The sale of Laya closed on October 31, 2023 and the AIG Life sale closed on April 8, 2024. Institutional

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing