Earnings

So financial statements can be hard to decipher, someone correct me if I am wrong.

Based on what I see, the bottom line was basically inflated due investment income primarily from financial services. The stock market is at all time highs. Also, financial services grew income 57% from 2020.

General Insurance seems to have written more premium, but the combined ratio is still 98.8, not sure if this include CAT losses or not?

AIG bought back $362,000,000 of its own stock to inflate the per share price, presumably to help upper management hit their stock options and make investors happy.

We all know financial services will be going away, GI at 98.8% combined ratio isn't a very good number after 4 plus years of trying and Q1 is usually a very kind quarter with the fewest CAT losses.

I harken back to BD's promise in his first town hall that the combined ratio would be in the upper 80s if you gave him and his team 3 years. Someone tell me what happens when financial services is spun off, GI still can't make an underwriting profit after 4 years and we are heading into the CAT heavy second half of 2021?

Looking for honest feedback........

Also, why is Hogan the lowest paid CEO? His should be running this place.

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Agreef with the comments and this os only first quarter worst is to come

Earnings at AIG is nothing but smoke, mirrors and a financial shell game. You move around enough junk, cover enough holes and eventually your room looks a little better.

Please explain how 98.8 combined is a solid quarter when first quarter is the least CAT exposed?

Let's just look at a well run insurance company like, I don't know, Chubb:

Chubb: "The public P&C combined ratio was 91.8% and included catastrophe losses of 9.1 percentage points, compared with 3.3% last year. The current accident year combined without cats was 85.2%. Chubb shares have climbed 8% since the beginning of the year, while the S&P’s 500 index has climbed 11%. In the final minutes of trading on Tuesday, shares hit $166.60, a rise of 56% in the last 12 months."

The 98 includes CAT. It was 92 ex-cat but no one here probably wants to hear that. It was a pretty solid quarter overall

If you see something like a 98.8 CR, you should assume management overrode the reserves to get below a 100%.

Also, when you look at the North American LR - it's almost 110%. That's incredibly bad given the market we're in.

If the objective at AIG was to turn the company around and make money, Hogan would be running it.

Unfortunately, the objective is to prolong progress and show only incremental improvement over many years while continuing to accept disproportionately high pay for very little to no return. AIG's "strong" earning reports would be considered mediocre for most companies of this size and they are few and far between.

Once L&R is taken from the overall AIG earnings things are going to get ugly, but BD already got his $100 plus million. PZ and gang are close behind with the friends and family parachute package so if the ship sinks it won't hurt them.

It's a good thing everyone loves working here so much, at least that's what the survey says?????

All your points/observations are correct!

Hogan is not paid as much as the other because he is not part of the “in crowd” of jokesters. He probably can’t wait till they get spun off or acquired by a company that has real leadership. Yes he should lead AIG as a whole, but then again why would he take that job when the current leadership is terrible and only made things worse over the last 4 years

Yes BD and crew said 3 years....maybe he meant 13 years or probably 30 years is what he and PZ needed...

Thread regarding AIG (American Intl Group Inc.) layoffs

Earnings

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