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American International Group (AIG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended December 2023, American International Group (AIG - Free Report) reported revenue of $12.72 billion, up 4.6% over the same period last year. EPS came in at $1.79, compared to $1.36 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $11.6 billion, representing a surprise of +9.65%. The company delivered an EPS surprise of +12.58%, with the consensus EPS estimate being $1.59.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American International Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Combined Ratio - Total General Insurance: 89.1% versus the five-analyst average estimate of 90.7%.
Expense Ratio - Total General Insurance: 32.6% compared to the 31.7% average estimate based on five analysts.
Loss Ratio - Total General Insurance: 56.5% versus 59% estimated by five analysts on average.
Combined Ratio - International - Commercial Lines: 85.5% versus the three-analyst average estimate of 87.6%.
Adjusted Revenue- Life and Retirement- Net investment income: $2.57 billion compared to the $2.49 billion average estimate based on five analysts. The reported number represents a change of +15.3% year over year.
General Insurance- Net premiums earned: $5.91 billion compared to the $6.15 billion average estimate based on five analysts. The reported number represents a change of -6% year over year.
Adjusted Revenue- Group Retirement: $673 million versus the four-analyst average estimate of $689.17 million. The reported number represents a year-over-year change of -0.2%.
Adjusted Revenue- Life Insurance: $1.29 billion versus $1.23 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -13% change.
Adjusted Revenue- Institutional Markets: $2.41 billion versus $1.31 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +40.6% change.
Adjusted Revenue- Life and Retirement- Premiums: $2.55 billion versus the four-analyst average estimate of $1.46 billion. The reported number represents a year-over-year change of +18.7%.
Adjusted Revenue- Life and Retirement- Policy fees: $703 million versus $694.74 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.2% change.
Adjusted Revenue- Individual Retirement: $1.64 billion compared to the $1.61 billion average estimate based on four analysts. The reported number represents a change of +14.8% year over year.
Shares of American International Group have returned +3.3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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American International Group (AIG) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended December 2023, American International Group (AIG - Free Report) reported revenue of $12.72 billion, up 4.6% over the same period last year. EPS came in at $1.79, compared to $1.36 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $11.6 billion, representing a surprise of +9.65%. The company delivered an EPS surprise of +12.58%, with the consensus EPS estimate being $1.59.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American International Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Combined Ratio - Total General Insurance: 89.1% versus the five-analyst average estimate of 90.7%.
- Expense Ratio - Total General Insurance: 32.6% compared to the 31.7% average estimate based on five analysts.
- Loss Ratio - Total General Insurance: 56.5% versus 59% estimated by five analysts on average.
- Combined Ratio - International - Commercial Lines: 85.5% versus the three-analyst average estimate of 87.6%.
- Adjusted Revenue- Life and Retirement- Net investment income: $2.57 billion compared to the $2.49 billion average estimate based on five analysts. The reported number represents a change of +15.3% year over year.
- General Insurance- Net premiums earned: $5.91 billion compared to the $6.15 billion average estimate based on five analysts. The reported number represents a change of -6% year over year.
- Adjusted Revenue- Group Retirement: $673 million versus the four-analyst average estimate of $689.17 million. The reported number represents a year-over-year change of -0.2%.
- Adjusted Revenue- Life Insurance: $1.29 billion versus $1.23 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -13% change.
- Adjusted Revenue- Institutional Markets: $2.41 billion versus $1.31 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +40.6% change.
- Adjusted Revenue- Life and Retirement- Premiums: $2.55 billion versus the four-analyst average estimate of $1.46 billion. The reported number represents a year-over-year change of +18.7%.
- Adjusted Revenue- Life and Retirement- Policy fees: $703 million versus $694.74 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.2% change.
- Adjusted Revenue- Individual Retirement: $1.64 billion compared to the $1.61 billion average estimate based on four analysts. The reported number represents a change of +14.8% year over year.
View all Key Company Metrics for American International Group here>>>Shares of American International Group have returned +3.3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.