American International Group Q4 EPS Soars 50.8% to $1.96, Revenue Slips 2.2%
AIG reported Q4 revenue of $6.95 billion, up 1.4% year-over-year, and EPS of $1.96, representing a 50.8% gain; revenue fell 2.2% short of estimates while EPS beat by 3.5%. The North America commercial loss ratio improved to 59.7% versus a 65.7% estimate, and net investment income dropped 33.6% to $872 million.
1. Q4 Earnings Summary
American International Group reported Q4 revenue of $6.95 billion, up 1.4% year-over-year, below the $7.1 billion estimate by 2.2%. EPS rose to $1.96 from $1.30 a year ago, surpassing the $1.89 consensus by 3.5%.
2. Underwriting Metric Highlights
The North America commercial loss ratio improved to 59.7% versus a 65.7% estimate, while its combined ratio narrowed to 84.7% against an 88.5% forecast. International commercial saw a combined ratio of 88.8% versus 86.4% expected, and the expense ratio increased to 31.7% from a projected 30.6%.
3. Investment Income and Premiums
Net investment income declined 33.6% year-over-year to $872 million, missing the $1 billion analyst projection. Total net premiums earned reached $5.99 billion, edging past the $5.93 billion estimate and rising 0.3% from the prior year.