Insurer AIG's Q3 adjusted EPS rises 77% on underwriting performance

American International

04/11/2025 21:24

Corrects Key Details table to say "adjusted ROE" and "ROE", not "adjusted ROCE" and "ROCE"

Overview

AIG Q3 adjusted EPS up 77% yr/yr, driven by strong underwriting performance

Net premiums written fell 2% yr/yr, reflecting changes in reinsurance structures

Outlook

AIG expects investments in Convex Group and Onex Corporation to be earnings, EPS, and ROE accretive

Company plans to leverage strong balance sheet for future growth

AIG confident in achieving financial objectives set at Investor Day

Result Drivers

UNDERWRITING INCOME - Driven by lower catastrophe-related charges and favorable prior year development

COMBINED RATIO IMPROVEMENT - Improved to 86.8% from 92.6% yr/yr, indicating better underwriting efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Premiums Written
$6.2 bln
Q3 EPS
$0.93
Q3 Net Income
$519 mln
Q3 Adjusted ROE
13.6%
Q3 ROE
5%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy"

Wall Street's median 12-month price target for American International Group Inc is $89.00, about 11.3% above its November 3 closing price of $78.96

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw2M342a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)