AMERICAN INTERNATIONAL GROUP INC
For the period ended Dec 31, 2023. Filed Feb 14, 2024.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 14, 2024
Contents
ITEM 1. Our Global Business Overview
| Sustaining IndustryLeadership Momentum | Creating Value throughProfitable Growth and aCulture of Underwriting andOperational Excellence |
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American International Group, Inc. (NYSE: 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.AIG is building on its industry leadership and is positioned to become a top-performing company recognized for the value it provides stakeholders in an environment of profound, complex and dynamic risk. In 2023, AIG delivered an outstanding year, producing financial, strategic and operational achievements that demonstrate continued strength in executing multiple, complex initiatives simultaneously and with quality.
In this Annual Report, unless otherwise mentioned or unless the context indicates otherwise, we use the terms “AIG,” the “Company,” “we,” “us” and “our” to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries. We use the term “AIG Parent” to refer solely to American International Group, Inc., and not to any of its consolidated subsidiaries.
About AIG
| World-Class Insurance Franchisesthat are among the leaders in their geographies and segments, providing differentiated service and expertise. | Breadth of Loyal Customersincluding millions of clients and policyholders ranging from multi-national Fortune 500 companies to individuals throughout the world. | Broad and Long-Standing Distribution Relationshipswith brokers, agents, advisors, banks and other distributors strengthened through AIG’s dedication to quality. |
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| Highly Engaged Global Workforce of more than 25,000 colleagues committed to excellence who are providing 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. | Balance Sheet Strength and Financial Flexibilityas demonstrated by approximately $45 billion in shareholders’ equity and AIG Parent liquidity sources of $12.1 billion as of December 31, 2023. |
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As a leading global property, casualty and specialty insurance organization, we are results oriented and believe that focusing on how we achieve positive outcomes creates an aligned and inclusive culture that enables further progress. Unifying under one set of clear and directive Purpose and Values empowers AIG colleagues to be conduits of positive change – delivering exceptional client service, enhanced shareholder value and a better experience for everyone we serve.
AIG’s five Values guide our actions:
Take ownership: we set clear expectations, we are proactive, we are accountable
Set the standard: we deliver quality—always, we are client-centric, we lead the industry
Win together: we are stronger together, we are aligned, we are one team
Be an ally: we strive for inclusion, we listen and learn, we speak with our actions
Do what’s right: we act with integrity, we lead by example, we lift up our communities
2023 Highlights and 2024 Priorities
| Execution of Multiple, Highly Complex Strategic InitiativesRepositioned AIG’s portfolio of businesses for sustainable, profitable growth with the divestitures of Validus Reinsurance, Ltd. (Validus Re) and Crop Risk Services, Inc. (CRS) and the transfer of Private Client Select to an independent Managing General Agent platformClosed sale of Validus Re, including AlphaCat Managers Ltd. and the Talbot Treaty reinsurance business, for $3.3 billion in cash including pre-closing dividendClosed sale of CRS for gross proceeds of $234 millionUnited General Insurance and AIG Parent leadership teams and their organizationsDebuted AIG Next, creating a leaner future-state business model and establishing enterprise-wide standards to drive better outcomes for all stakeholders | Continued Balanced Capital Management Supporting Financial Strength, Growth and Shareholder ReturnRepurchased $3.0 billion of AIG's common stock,par value $2.50 per share (AIG Common Stock)and paid $1.0 billion of dividendsReduced weighted average diluted shares outstanding by 8 percent, reaching 725.2 million sharesIncreased quarterly common stock dividend payments by 12.5 percent $0.36 per share during the second quarter of 2023Reduced general borrowings by $1.4 billion |
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| Strong Performance Resulting from Significant Improvement in Underwriting IncomeGeneral Insurance achieved $2.3 billion in underwriting income, up 15 percent year over year 2023 combined ratio of 90.6 compared to 91.9 in 2022,and sub-100 in every quarter of 20232023 accident year combined ratio, as adjusted(a) of 87.7 improved 1.0 point compared to 88.7 in 2022 | Continued Progress Towards Deconsolidation and Separation of Corebridge Financial, Inc. (Corebridge)AIG sold 159.75 million shares of Corebridge common stock in secondary public offerings with gross proceeds of $2.9 billionCorebridge repurchased 17.2 million shares of its common stock from AIG for an aggregate purchase price of $315 millionCorebridge distributed dividends on Corebridge common stock totaling $1.1 billion to AIGAIG’s ownership of Corebridge reduced to 52.2 percent as of December 31, 2023Corebridge closed the sale of Laya Healthcare Limited (Laya) for €691 million ($731 million) and announced the sale of AIG Life Limited (AIG Life) for consideration of £460 million |
(a)Non-GAAP measure – for reconciliation of non-GAAP to GAAP measure, see Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).
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