Insurance major AIG has reported a net loss attributable to AIG common shareholders of $3.98bn for the second quarter (Q2) of 2024, versus net income of $1.48bn during the same period of 2023.
The company’s quarterly performance was hit by the recognition of a $4.7bn loss following the deconsolidation of Corebridge Financial.
In Q1 2024, AIG reported attributable net income of $1.2bn.
Net premiums written in the quarter ended on 30 June 2024 totalled $6.9bn, marking an 8% decrease from the previous year on a reported basis. This was due to divestitures in 2023.
However, on a comparable basis, there was a 7% increase, spurred by an 8% growth in global commercial lines.
The company’s total net investment income grew 18% to $990m in the three months to June 2024, up from $837m in the year-ago quarter.
This increase was fuelled by higher income from fixed maturity securities and loans, alongside dividends from Corebridge in Q2 2024.
However, this was partly offset by reduced returns from equity and alternative investments and asset sales such as the sale of Validus Re.
Catastrophe losses for the quarter stood at $325m, with $156m occurring in North America due to US convective storms and $169m internationally, predominantly from Middle East rains.
Despite the reported losses, AIG has returned nearly $2bn to its shareholders in Q2 through $1.7bn in common stock repurchases, approximately 22 million shares and $261m in common stock dividends.
The AIG board declared a quarterly cash dividend of $0.40 per share on AIG common stock, payable on 30 September 2024, to stockholders of record as of 16 September 2024.
For the first six months of 2024, net loss attributable to AIG common shareholders was $2.78bn.
AIG chairman and CEO Peter Zaffino said: “AIG had an outstanding second quarter and delivered terrific underwriting results across all of our businesses. The quarter marked one of the most notable accomplishments in AIG’s history with the deconsolidation of Corebridge, a process which began in 2020 and significantly advanced our multi-year strategy to position AIG for the future.”
“AIG reports net loss of $3.97bn in Q2 2024 ” was originally created and published by Life Insurance International, a GlobalData owned brand.
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