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/Mis Actual Consensu

s s

Estimate

Q3 Net $6.20

Premiums bln

Written

Q3 EPS $0.93

Q3 Net $519 mln

Income

Q3 13.60%

Adjusted

ROCE

Q3 ROCE 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 ( AIG ) 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:

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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.)