Q2 snap: another poor result
AIG delivered another disappointing result with adjusted EPS 15% below consensus at $1.05 (vs consensus at $1.23) and arguably this was a 20% miss at a normalised level. Catastrophes were actually below our expectations but severe losses were above. The real concern remains the weakness in the underlying combined ratio, which was up 8pp YoY to 101%. Curiously, AIG accelerated premium growth (+5% YoY) when the focus should clearly have been on profitability. Life & Retirement delivered a better result but after taking into account actuarial adjustments, alternative investments and fair value changes, we calculate that it was a slight miss. Still, a normalised ROE of 12.5% was much better than the ~7% in P&C and the 6.6% that we calculate for AIG overall.American International Group is a holding company. Through its subsidiaries, the company provides a range of property casualty insurance, life insurance, retirement solutions, and other financial services. The company's businesses include General Insurance, which provides insurance products and services for commercial and personal insurance customers; Life and Retirement, which brings together a portfolio of life insurance, retirement and institutional products provided through a multichannel distribution network; and Other Operations, which include Blackboard U.S. Holdings, Inc., a subsidiary focused on delivering commercial insurance solutions using digital technology, data analytics and automation.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.