2023-05-04 16:30:15 ET
American International Group ( NYSE: AIG ) Q1 earnings beat the consensus estimate and grew from a year ago as net premiums in its General Insurance unit increased and underwriting income climbed.
The insurer also increased its quarterly dividend to $0.36 per share, up from its previous dividend of $0.32, its first dividend increase since 2016. That milestone "reflects the confidence we have in the future earnings power of AIG," said CEO and Chairman Peter Zaffino.
Q1 adjusted EPS of $1.63, exceeding the consensus estimate of $1.42, increased from $1.49 in the year-ago quarter. Adjusted pretax income of $1.64B dropped from $1.72B a year ago.
"General Insurance net premiums written increased 5% year over year," Zaffino said. "On a constant dollar basis and adjusted for the International lag elimination, net premiums written increased 10%, driven by strong growth in North America Commercial led by Validus Re and Lexington, and International Commercial, led by Global Specialty."
Q1 General Insurance net premiums written of $6.97B increased 5% Y/Y, underwriting income of $502M rose 13%, and adjusted pretax net investment income of $746M slipped 2%.
General Insurance adjusted pretax income of $1.25B increased from $1.21B a year earlier. General Insurance accident year combined ratio, as adjusted, improved to 88.7% from 89.5% in the year-ago quarter.
Life and Retirement adjusted pretax income adjusted pretax income of $886M.
Adjusted book value per common share of $75.87, down slightly from $75.90 at Dec. 31, 2022.
Q1 adjusted return on common equity was 8.7% vs. 8.5% a year ago.
AIG ( AIG ) also said it adopted as of Jan. 1, 2023 a new accounting standard related to long-duration contracts and modified a method relating to liabilities for some payment contracts and deferred policy acquisition costs. As a result, it has recast reported 2021 and 2022 financial results for LDTI-related charges.
Conference call at 8:30 AM ET.
Earlier, American International Group ( AIG ) non-GAAP EPS of $1.63 beats by $0.21.
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AIG Q1 earnings climb, topping consensus, helped by strong underwriting