AIG Files Q3 2024 10-Q Report

Ticker: AIG · Form: 10-Q · Filed: Nov 7, 2024 · CIK: 5272

Sentiment: neutral

Topics: 10-Q, financials, insurance

Related Tickers: AIG

TL;DR

**AIG Q3 2024 10-Q is IN! Check financials for latest performance.**

AI Summary

American International Group, Inc. (AIG) filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial data and disclosures relevant to investors and stakeholders are provided.

Why It Matters

This 10-Q filing provides crucial insights into AIG's financial health and strategic direction for the third quarter of 2024, impacting investor confidence and market valuation.

Risk Assessment

Risk Level: medium — Quarterly reports like this 10-Q can reveal shifts in financial performance, operational challenges, or new risks that could impact a company's stock price.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240930, meaning the filing covers the period ending September 30, 2024.

When was this 10-Q filing submitted to the SEC?

The filing was submitted on 20241107.

What is the primary business of American International Group, Inc. according to the filing?

The Standard Industrial Classification indicates AIG is in FIRE, MARINE & CASUALTY INSURANCE [6331].

Where is American International Group, Inc. headquartered?

The company's business address is listed as 1271 Ave of the Americas, FL 37, New York, NY 10020-1304.

What is the SEC file number for American International Group, Inc.?

The SEC file number is 001-08787.

Filing Stats: 5,008 words · 20 min read · ~17 pages · Grade level 18.5 · Accepted 2024-11-07 12:02:06

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information ITEM 1

Financial Statements

Financial Statements 2 Note 1. Basis of Presentation 9 Note 2. Summary of Significant Accounting Policies 10 Note 3. Segment Information 10 Note 4. Held-For-Sale Classification & Discontinued Operations Presentation 13 Note 5. Fair Value Measurements 16 Note 6. Investments 30 Note 7. Lending Activities 37 Note 8. Reinsurance 40 Note 9. Deferred Policy Acquisition Costs 42 Note 10. Variable Interest Entities 42 Note 11. Derivatives and Hedge Accounting 44 Note 12. Insurance Liabilities 47 Note 13. Contingencies, Commitments and Guarantees 51 Note 14. Equity 52 Note 15. Earnings Per Common Share (EPS) 56 Note 16. Income Taxes 56 Note 17. Subsequent Events 58 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 59 Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future Results 59 Use of Non-GAAP Measures 62 Critical Accounting Estimates 64 Executive Summary 64 Consolidated Results of Operations 66 Business Segment Operations 71 Investments 79 Insurance Reserves 87 Liquidity and Capital Resources 92 Enterprise Risk Management 98 Glossary 99 Acronyms 101 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 102 ITEM 4

Controls and Procedures

Controls and Procedures 102

– Other Information

Part II – Other Information ITEM 1

Legal Proceedings

Legal Proceedings 103 ITEM 1A

Risk Factors

Risk Factors 103 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 103 ITEM 5 Other Information 103 ITEM 6 Exhibits 104

Signatures

Signatures 105 AIG | Third 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) September 30, 2024 December 31, 2023 Assets: Investments: Fixed maturity securities: Bonds available for sale, at fair value, net of allowance for credit losses of $ 40 in 2024 and $ 34 in 2023 (amortized cost: 2024 - $ 67,364 ; 2023 - $ 68,119 )* $ 65,980 $ 65,242 Other bond securities, at fair value (See Note 6) 763 663 Equity securities, at fair value (See Note 6) 767 665 Mortgage and other loans receivable, net of allowance for credit losses of $ 37,803 in 2024 and $ 37,776 in 2023* 4,286 4,441 Other invested assets (portion measured at fair value: 2024 - $ 11,780 ; 2023 - $ 4,175 ) 14,440 6,368 Short-term investments, including restricted cash of $ 72 in 2024 and $ 1 in 2023 (portion measured at fair value: 2024 - $ 8,822 ; 2023 - $ 9,363 )* 11,848 12,865 Total investments 98,084 90,244 Cash 1,472 1,540 Accrued investment income* 581 580 Premiums and other receivables, net of allowance for credit losses and disputes of $ 133 in 2024 and $ 138 in 2023 11,196 9,967 Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes of $ 0 in 2024 and $ 0 in 2023 3,529 3,839 Reinsurance assets - other, net of allowance for credit losses and disputes of $ 223 in 2024 and $ 206 in 2023 36,790 35,293 Deferred income tax assets 5,278 6,186 Deferred policy acquisition costs 2,191 2,117 Goodwill 3,453 3,422 Deposit accounting assets, net of allowance for credit losses of $ 49 in 2024 and $ 49 in 2023 2,185 1,915 Other assets, including restricted cash of $ 15 in 2024 and $ 32 in 2023 (portion measured at fair value: 2024 - $ 231 ; 2023 - $ 374 )* 4,553 5,425 Assets held for sale 137 30 Assets of discontinued operations — 378,748 Total assets $ 169,449 $ 539,306 Liabilities: Liability for unpaid losses and loss adjustment expenses, including allowance for credit los

| 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. 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 nine months ended September 30, 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 September 30, 2024 and prior to the issuance of these Condensed Consolidated Financial Statements. Prior year Condensed Consolidated Financial Statements h

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

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation 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. Certain critical accounting estimates were eliminated as a result of the deconsolidation of Corebridge Financial, Inc. (Corebridge), the holding company for AIG's former Life and Retirement business, in the second quarter of 2024. There were no changes to the remaining critical accounting estimates. For further details, see Note 4. 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 requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities. The Company adopted the standard on January 1, 2024, prospectively for entities other than investment companies. The adoption of the standard did not have a material impact on AIG Consolidated Financial Statements. FUTURE APPLICATION OF ACCOUNTING STANDARDS Income Tax In December 2023, the FASB issued an accounting standard update to address improvements to income tax disclosures. The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The standard is effective for public companies for annual periods beginning after December 15, 2024, with early adoption permitted. The standard s

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