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Compared to Estimates, American International Group (AIG) Q3 Earnings: A Look at Key Metrics
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For the quarter ended September 2023, American International Group (AIG - Free Report) reported revenue of $11.36 billion, up 0.3% over the same period last year. EPS came in at $1.61, compared to $0.66 in the year-ago quarter.
The reported revenue represents a surprise of -10.01% over the Zacks Consensus Estimate of $12.62 billion. With the consensus EPS estimate being $1.55, the EPS surprise was +3.87%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: 90.5% compared to the 93.8% average estimate based on four analysts.
Expense ratio - Total General Insurance: 30.9% versus 30.3% estimated by four analysts on average.
Loss ratio - Total General Insurance: 59.6% compared to the 63.4% average estimate based on four analysts.
Combined Ratio - International - Commercial Lines: 83.4% versus the three-analyst average estimate of 95.9%.
Net investment income- Life and Retirement: $2.47 billion compared to the $2.43 billion average estimate based on four analysts. The reported number represents a change of +23% year over year.
Net premiums earned- General Insurance: $6.42 billion versus $6.65 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
Adjusted Revenue- Group Retirement: $688 million versus $680.95 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.
Adjusted Revenue- Life Insurance: $1.28 billion compared to the $1.30 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.
Adjusted Revenue- Institutional Markets: $656 million versus $1.78 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -40.9% change.
Premiums- Life and Retirement: $810 million versus the three-analyst average estimate of $2 billion. The reported number represents a year-over-year change of -42.3%.
Policy fees- Life and Retirement: $702 million compared to the $718.73 million average estimate based on three analysts. The reported number represents a change of -4.1% year over year.
Adjusted Revenue- Individual Retirement: $1.56 billion compared to the $1.57 billion average estimate based on three analysts. The reported number represents a change of +18.9% year over year.
Shares of American International Group have returned +4.6% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Compared to Estimates, American International Group (AIG) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, American International Group (AIG - Free Report) reported revenue of $11.36 billion, up 0.3% over the same period last year. EPS came in at $1.61, compared to $0.66 in the year-ago quarter.
The reported revenue represents a surprise of -10.01% over the Zacks Consensus Estimate of $12.62 billion. With the consensus EPS estimate being $1.55, the EPS surprise was +3.87%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: 90.5% compared to the 93.8% average estimate based on four analysts.
- Expense ratio - Total General Insurance: 30.9% versus 30.3% estimated by four analysts on average.
- Loss ratio - Total General Insurance: 59.6% compared to the 63.4% average estimate based on four analysts.
- Combined Ratio - International - Commercial Lines: 83.4% versus the three-analyst average estimate of 95.9%.
- Net investment income- Life and Retirement: $2.47 billion compared to the $2.43 billion average estimate based on four analysts. The reported number represents a change of +23% year over year.
- Net premiums earned- General Insurance: $6.42 billion versus $6.65 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
- Adjusted Revenue- Group Retirement: $688 million versus $680.95 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.
- Adjusted Revenue- Life Insurance: $1.28 billion compared to the $1.30 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.
- Adjusted Revenue- Institutional Markets: $656 million versus $1.78 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -40.9% change.
- Premiums- Life and Retirement: $810 million versus the three-analyst average estimate of $2 billion. The reported number represents a year-over-year change of -42.3%.
- Policy fees- Life and Retirement: $702 million compared to the $718.73 million average estimate based on three analysts. The reported number represents a change of -4.1% year over year.
- Adjusted Revenue- Individual Retirement: $1.56 billion compared to the $1.57 billion average estimate based on three analysts. The reported number represents a change of +18.9% year over year.
View all Key Company Metrics for American International Group here>>>Shares of American International Group have returned +4.6% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.