Earnings Document
For Immediate Release İ
Third Quarter Results Summary
- Net income of
$331 million , or$0.41 per share, compared to net income of$1.5 billion , or$1.77 per share, in the third quarter of 2021. - Adjusted earnings of
$966 million , or$1.21 per share, compared to adjusted earnings of$2.1 billion , or$2.39 per share, in the third quarter of 2021. - Book value of
$27.00 per share, down 65 percent from$77.24 per share atSeptember 30, 2021 . - Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of
$54.37 per share, down 5 percent from$57.29 per share atSeptember 30, 2021 . - Retuon equity (ROE) of 4.9 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 8.9 percent.
- Holding company cash and liquid assets of
$5.2 billion atSeptember 30, 2022 , which is above the target cash buffer of$3.0 -$4.0 billion .
"Against the current backdrop, we are pleased with the execution of our Next Horizon strategy, which continues to demonstrate its resilience," said
Page 1 of 29
Third Quarter 2022 Summary
($ in millions, except per share data)
Premiums, fees and other revenues
Net investment income
Net investment gains (losses)
Net derivative gains (losses)
Total revenues
Adjusted premiums, fees and other revenues
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)
Net income (loss)
Net income (loss) per share
Adjusted earnings
Adjusted earnings per share
Adjusted earnings, excluding total notable items
Adjusted earnings, excluding total notable items per share
Book value per share
Book value per share, excluding AOCI other than FCTA
Expense ratio
Direct expense ratio, excluding total notable items related to direct expenses and PRT
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT
ROE
Adjusted ROE, excluding AOCI other than FCTA
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)
Three months ended
|
2022 |
2021 |
Change |
||
|
|
|
68% |
||
|
3,585 |
5,568 |
(36)% |
- (84)
- (218)
$22,270 $16,905
|
|
|
71% |
||
|
|
|
(3)% |
||
|
$ |
331 |
|
(78)% |
|
|
$ |
0.41 |
$ |
1.77 |
(77)% |
|
$ |
966 |
|
(53)% |
|
|
$ |
1.21 |
$ |
2.39 |
(49)% |
|
$ |
932 |
|
(58)% |
|
|
$ |
1.16 |
$ |
2.56 |
(55)% |
|
|
|
(65)% |
||
|
|
|
(5)% |
||
11.6 % 19.2 %
12.3 % 11.1 %
20.1 % 18.7 %
4.9 % 9.3 %
8.9 % 17.0 %
8.6 % 18.2 %
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.
Supplemental slides for the third quarter of 2022, titled "3Q22 Supplemental Slides," are available on the
Page 2 of 29
Total Company Discussion
Net investment income was
Net derivative losses amounted to
Net income was
Annual Actuarial Assumption Review and Other Insurance Adjustments
In the third quarter of 2022,
Adjusted Earnings by Segment Summary*
|
Three months ended |
||
|
|
||
|
Change from |
||
|
prior-year |
||
|
period (on a |
||
|
Change from |
constant |
|
|
currency |
||
|
Segment |
prior-year period |
basis) |
|
|
(17)% |
|
|
|
(65)% |
(65)% |
|
|
NM%** |
NM%** |
|
|
(36)% |
(20)% |
|
|
(90)% |
- The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.
- Not meaningful. For more information, refer to "Non-GAAP and Other Financial Disclosures".
Page 3 of 29
Business Discussions
All comparisons of the results for the third quarter of 2022 in the business discussions that follow are with the third quarter of 2021, unless otherwise noted. The third quarter of 2022 notable items table follows the Business Discussions section of this release.
|
Three months ended |
Three months ended |
||
|
($ in millions) |
|
|
Change |
|
Adjusted earnings |
|
|
(17)% |
|
Adjusted premiums, fees and other |
|
|
134% |
|
revenues |
|||
|
Adjusted premiums, fees and other |
|
|
1% |
|
revenues, excluding PRT |
|||
|
Notable item(s) |
|
|
|
- Adjusted earnings were
$744 million , down 17 percent, primarily driven by lower variable investment income partially offset by a decline in COVID-19 life insurance claims. - Excluding notable items from both periods, adjusted earningswere down 27 percent.
- Adjusted retuon allocated equity was 26.1 percent, and adjusted retuon allocated tangible equity was 35.0 percent.
- Adjusted premiums, fees and other revenues were
$15.0 billion , up 134 percent, primarily driven by higher pension risk transfer sales.
Group Benefits
|
Three months ended |
Three months ended |
||
|
($ in millions) |
|
|
Change |
|
Adjusted earnings |
|
|
259% |
|
Adjusted premiums, fees and other |
|
|
3% |
|
revenues |
|||
|
Notable item(s) |
|
|
|
- Adjusted earnings were
$399 million , up 259 percent, primarily driven by favorable underwriting, including a decline in COVID-19 life insurance claims, and volume growth. - Adjusted premiums, fees and other revenues were
$5.7 billion , up 3 percent, primarily driven by solid growth across most products, including voluntary, partially offset by higher premiums in the prior year related to participating life contracts. Premiums, fees and other revenues from participating life contracts can fluctuate with claims experience. - Sales were down 18 percent year-to-date due to lower jumbo case activity.
Page 4 of 29
Retirement and Income Solutions
|
Three months ended |
Three months ended |
||
|
($ in millions) |
|
|
Change |
|
Adjusted earnings |
|
|
(56)% |
|
Adjusted premiums, fees and other |
|
|
NM% |
|
revenues |
|||
|
Adjusted premiums, fees and other |
|
|
(13)% |
|
revenues, excluding PRT |
|||
|
Notable item(s) |
|
|
|
- Adjusted earnings were
$345 million , down 56 percent, largely driven by lower variable investment income. The notable item in the current-year period, related to a favorable reinsurance recapture, was a partial offset. - Excluding notable items from both periods, adjusted earningswere down 68 percent.
- Adjusted premiums, fees and other revenues were
$9.3 billion , compared to$891 million in the third quarter of 2021, primarily driven by a large pension risk transfer transaction. - Excluding pension risk transfers, adjusted premiums, fees and other revenues were
$793 million , down 13 percent, primarily due to higher single premium life insurance sales in the prior-year period. - Sales were up 59 percent year-to-date, primarily driven by pension risk transfer transactions and stable value products.
Page 5 of 29
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
AMERICAN INTERNATIONAL GROUP, INC. – 10-Q – | Management's Discussion and Analysis of Financial Condition and Results of Operations
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