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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-8787
American International Group, Inc.
(Exact name of registrant as specified in its charter)
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Delaware | 13-2592361 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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1271 Avenue of the Americas, New York, New York | 10020 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (212) 770-7000
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Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Title of each class | Trading Symbol | Name of each exchange on which registered |
Common Stock, Par Value $2.50 Per Share | AIG | New York Stock Exchange |
4.875% Series A-3 Junior Subordinated Debentures | AIG 67EU | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | |
Large accelerated filer ☑ | | | | Accelerated filer ☐ |
Non-accelerated filer ☐ | | | | Smaller reporting company ☐ |
| | | | Emerging growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of July 26, 2024, there were 643,951,434 shares outstanding of the registrant’s common stock.
AMERICAN INTERNATIONAL GROUP, INC.
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024
TABLE OF CONTENTS
FORM 10-Q
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Item Number | Description | | Page |
Part I – Financial Information | |
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Part II – Other Information |
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AIG | Second Quarter 2024 Form 10-Q | 1 |
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Part I – Financial Information |
Item 1. | Financial Statements
American International Group, Inc.
Condensed Consolidated Balance Sheets (unaudited)
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(in millions, except for share data) | June 30, 2024 | December 31, 2023 |
Assets: | | | | |
Investments: | | | | |
Fixed maturity securities: | | | | |
Bonds available for sale, at fair value, net of allowance for credit losses of $33 in 2024 and $34 in 2023 (amortized cost: 2024 - $65,326; 2023 - $68,119)* | $ | 62,333 | | $ | 65,242 | |
Other bond securities, at fair value (See Note 6) | | 766 | | | 663 | |
Equity securities, at fair value (See Note 6) | | 688 | | | 665 | |
Mortgage and other loans receivable, net of allowance for credit losses of $37,799 in 2024 and $37,776 in 2023* | | 4,347 | | | 4,441 | |
Other invested assets (portion measured at fair value: 2024 - $12,386; 2023 - $4,175) | | 14,788 | | | 6,368 | |
Short-term investments, including restricted cash of $3 in 2024 and $1 in 2023 (portion measured at fair value: 2024 - $8,137; 2023 - $9,363)* | | 12,563 | | | 12,865 | |
Total investments | | 95,485 | | | 90,244 | |
Cash | | 1,381 | | | 1,540 | |
Accrued investment income* | | 563 | | | 580 | |
Premiums and other receivables, net of allowance for credit losses and disputes of $126 in 2024 and $138 in 2023 | | 11,669 | | | 9,967 | |
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes of $0 in 2024 and $0 in 2023 | | 3,592 | | | 3,839 | |
Reinsurance assets - other, net of allowance for credit losses and disputes of $211 in 2024 and $206 in 2023 | | 37,068 | | | 35,293 | |
Deferred income tax assets | | 5,568 | | | 6,186 | |
Deferred policy acquisition costs | | 2,123 | | | 2,117 | |
Goodwill | | 3,407 | | | 3,422 | |
Deposit accounting assets, net of allowance for credit losses of $49 in 2024 and $49 in 2023 | | 2,132 | | | 1,915 | |
| | | | |
Other assets, including restricted cash of $18 in 2024 and $32 in 2023 (portion measured at fair value: 2024 - $189; 2023 - $374)* | | 4,717 | | | 5,425 | |
| | | | |
Assets held for sale | | 185 | | | 30 | |
Assets of discontinued operations | | — | | | 378,748 | |
Total assets | $ | 167,890 | | $ | 539,306 | |
Liabilities: | | | | |
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2024 and $14 in 2023 | $ | 69,783 | | $ | 70,393 | |
Unearned premiums | | 18,738 | | | 17,375 | |
Future policy benefits for life and accident and health insurance contracts | | 1,355 | | | 1,467 | |
| | | | |
| | | | |
Other policyholder funds | | 435 | | | 495 | |
Fortitude Re funds withheld payable (portion measured at fair value: 2024 - $(154); 2023 - $(148)) | | 3,364 | | | 3,527 | |
Premiums and other related payables | | 7,729 | | | 6,219 | |
Deposit accounting liabilities | | 2,782 | | | 2,612 | |
Commissions and premium taxes payable | | 1,395 | | | 1,351 | |
Current and deferred income tax liabilities | | 375 | | | 347 | |
Other liabilities (portion measured at fair value: 2024 - $323; 2023 - $482) | | 7,366 | | | 7,496 | |
Long-term debt | | 9,861 | | | 10,375 | |
Debt of consolidated investment entities* | | 79 | | | 231 | |
| | | | |
Liabilities held for sale | | 153 | | | 28 | |
Liabilities of discontinued operations | | — | | | 366,089 | |
Total liabilities | | 123,415 | | | 488,005 | |
Contingencies, commitments and guarantees (See Note 13) | | | | |
AIG shareholders’ equity: | | | | |
Series A non-cumulative preferred stock and additional paid in capital, $5.00 par value; 100,000,000 shares authorized; shares issued: 2024 - 0 and 2023 - 20,000; liquidation preference $500 | | — | | | 485 | |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2024 - 1,906,671,492 and 2023 - 1,906,671,492 | | 4,766 | | | 4,766 | |
Treasury stock, at cost; 2024 - 1,256,808,687 shares; 2023 - 1,217,831,721 shares of common stock | | (62,255) | | | (59,189) | |
Additional paid-in capital | | 75,274 | | | 75,810 | |
Retained earnings | | 34,225 | | | 37,516 | |
Accumulated other comprehensive loss | | (7,565) | | | (14,037) | |
Total AIG shareholders’ equity | | 44,445 | | | 45,351 | |
Non-redeemable noncontrolling interests | | 30 | | | 5,950 | |
Total equity | | 44,475 | | | 51,301 | |
Total liabilities and equity | $ | 167,890 | | $ | 539,306 | |
*See Note 10 for details of balances associated with variable interest entities.
See accompanying Notes to Condensed Consolidated Financial Statements.
| | | | | |
2 | AIG | Second Quarter 2024 Form 10-Q |
American International Group, Inc.
Condensed Consolidated Statements of Income (Loss) (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
(dollars in millions, except per common share data) | | 2024 | | 2023 | | | 2024 | | 2023 | | |
Revenues: | | | | | | | | | | | |
Premiums | $ | 5,748 | | $ | 6,614 | | | $ | 11,619 | | $ | 12,990 | | | |
| | | | | | | | | | | |
Net investment income: | | | | | | | | | | | |
Net investment income - excluding Fortitude Re funds withheld assets | | 957 | | | 812 | | | | 1,897 | | | 1,604 | | | |
Net investment income - Fortitude Re funds withheld assets | | 33 | | | 25 | | | | 72 | | | 77 | | | |
Total net investment income | | 990 | | | 837 | | | | 1,969 | | | 1,681 | | | |
Net realized gains (losses): | | | | | | | | | | | |
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative | | (187) | | | (65) | | | | (246) | | | (382) | | | |
Net realized losses on Fortitude Re funds withheld assets | | (1) | | | (7) | | | | (20) | | | (61) | | | |
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative | | 8 | | | 58 | | | | (1) | | | (82) | | | |
Total net realized losses | | (180) | | | (14) | | | | (267) | | | (525) | | | |
Other income | | 2 | | | (1) | | | | 2 | | | (1) | | | |
Total revenues | | 6,560 | | | 7,436 | | | | 13,323 | | | 14,145 | | | |
Benefits, losses and expenses: | | | | | | | | | | | |
Losses and loss adjustment expenses incurred | | 3,467 | | | 3,979 | | | | 6,980 | | | 7,883 | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Amortization of deferred policy acquisition costs | | 842 | | | 933 | | | | 1,680 | | | 1,972 | | | |
General operating and other expenses | | 1,610 | | | 1,494 | | | | 2,848 | | | 2,737 | | | |
Interest expense | | 125 | | | 129 | | | | 241 | | | 253 | | | |
Loss on extinguishment of debt | | 1 | | | — | | | | 1 | | | — | | | |
Net (gain) loss on divestitures and other | | (102) | | | 15 | | | | (102) | | | 12 | | | |
Total benefits, losses and expenses | | 5,943 | | | 6,550 | | | | 11,648 | | | 12,857 | | | |
Income from continuing operations before income tax expense | | 617 | | | 886 | | | | 1,675 | | | 1,288 | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Income tax expense | | 142 | | | 45 | | | | 403 | | | 110 | | | |
Income from continuing operations | | 475 | | | 841 | | | | 1,272 | | | 1,178 | | | |
Income (loss) from discontinued operations, net of income taxes | | (4,359) | | | 850 | | | | (3,556) | | | 426 | | | |
Net income (loss) | | (3,884) | | | 1,691 | | | | (2,284) | | | 1,604 | | | |
Less: Net income (loss) attributable to noncontrolling interests | | 93 | | | 198 | | | | 477 | | | 81 | | | |
Net income (loss) attributable to AIG | | (3,977) | | | 1,493 | | | | (2,761) | | | 1,523 | | | |
Less: Dividends on preferred stock and preferred stock redemption premiums | | — | | | 8 | | | | 22 | | | 15 | | | |
Net income (loss) attributable to AIG common shareholders | $ | (3,977) | | $ | 1,485 | | | $ | (2,783) | | $ | 1,508 | | | |
Income per common share attributable to AIG common shareholders: | | | | | | | | | | | |
Basic: | | | | | | | | | | | |
Income from continuing operations | $ | 0.72 | | $ | 1.15 | | | $ | 1.86 | | $ | 1.59 | | | |
Income (loss) from discontinued operations | $ | (6.74) | | $ | 0.90 | | | $ | (6.00) | | $ | 0.47 | | | |
Net income (loss) attributable to AIG common shareholders | $ | (6.02) | | $ | 2.05 | | | $ | (4.14) | | $ | 2.06 | | | |
Diluted: | | | | | | | | | | | |
Income from continuing operations | $ | 0.71 | | $ | 1.14 | | | $ | 1.85 | | $ | 1.58 | | | |
Income (loss) from discontinued operations | $ | (6.67) | | $ | 0.89 | | | $ | (5.96) | | $ | 0.47 | | | |
Net income (loss) attributable to AIG common shareholders | $ | (5.96) | | $ | 2.03 | | | $ | (4.11) | | $ | 2.05 | | | |
Weighted average shares outstanding: | | | | | | | | | | | |
Basic | | 661,092,967 | | | 725,754,549 | | | | 671,834,907 | | | 732,175,533 | | | |
Diluted | | 666,955,168 | | | 730,547,112 | | | | 677,458,343 | | | 737,290,694 | | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
| | | | | |
AIG | Second Quarter 2024 Form 10-Q | 3 |
American International Group, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Six Months Ended | |
| June 30, | | June 30, |
(in millions) | | 2024 | | 2023 | | | 2024 | | 2023 | | |
Net income (loss) | $ | (3,884) | | $ | 1,691 | | | $ | (2,284) | | $ | 1,604 | | | |
Other comprehensive income (loss), net of tax | | | | | | | | | | | |
Change in unrealized appreciation of fixed maturity securities on which allowance for credit losses was taken | | 5 | | | 29 | | | | 26 | | | 17 | | | |
Change in unrealized appreciation (depreciation) of all other investments | | (160) | | | (591) | | | | (275) | | | 528 | | | |
| | | | | | | | | | | |
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts | | (92) | | | (77) | | | | (90) | | | (14) | | | |
Change in foreign currency translation adjustments | | 35 | | | (64) | | | | (310) | | | (107) | | | |
Change in retirement plan liabilities adjustment | | 10 | | | 52 | | | | 17 | | | 78 | | | |
Change in other comprehensive income (loss) related to discontinued operations | | (318) | | | (1,087) | | | | (945) | | | 1,673 | | | |
Corebridge Deconsolidation | | 7,214 | | | — | | | | 7,214 | | | — | | | |
| | | | | | | | | | | |
Other comprehensive income (loss) | | 6,694 | | | (1,738) | | | | 5,637 | | | 2,175 | | | |
Comprehensive income (loss) | | 2,810 | | | (47) | | | | 3,353 | | | 3,779 | | | |
Comprehensive income (loss) attributable to noncontrolling interests | | 93 | | | (60) | | | | 179 | | | 449 | | | |
Comprehensive income (loss) attributable to AIG | $ | 2,717 | | $ | 13 | | | $ | 3,174 | | $ | 3,330 | | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
| | | | | |
4 | AIG | Second Quarter 2024 Form 10-Q |
American International Group, Inc.
Condensed Consolidated Statements of Equity (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions, except per share data) | Preferred Stock and Additional Paid-in Capital | | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total AIG Share- holders' Equity | Non- redeemable Non- controlling Interests | | Total Equity |
Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | $ | — | | $ | 4,766 | | $ | (60,603) | | $ | 75,625 | | $ | 38,466 | | $ | (14,869) | | $ | 43,385 | | $ | 5,725 | | $ | 49,110 | |
Common stock issued under stock plans | | — | | | — | | | 25 | | | (15) | | | — | | | — | | | 10 | | | — | | | 10 | |
Purchase of common stock | | — | | | — | | | (1,677) | | | — | | | — | | | — | | | (1,677) | | | — | | | (1,677) | |
Net income (loss) attributable to AIG or noncontrolling interests | | — | | | — | | | — | | | — | | | (3,977) | | | — | | | (3,977) | | | 93 | | | (3,884) | |
| | | | | | | | | | | | | | | | | | |
Dividends on common stock ($0.40 per share) | | — | | | — | | | — | | | — | | | (261) | | | — | | | (261) | | | — |