American International Group (AIG) has reported net income attributable to common shareholders of $1.19bn for the first quarter (Q1) of 2024, a huge surge compared with the $23m reported last year. 

This rise was primarily driven by net realised gains on Fortitude Re funds withheld embedded derivative, contrasting with net realised losses in the prior year quarter. 

The general insurance segment of AIG recorded an adjusted pre-tax income (APTI) of $1.36bn versus $1.25bn a year earlier.  

The life and retirement unit of the company posted APTI of $991m for the quarter as against $886 last year. 

AIG reported a 24% slump in gross premiums written in the general insurance segment, which fell to $9.15bn from $12.91bn year on year. 

AIG’s total net investment income for Q1 2024 was $3.9bn, an 11% increase from the $3.53bn reported in the year-ago quarter.  

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The rise was mainly due to higher income from fixed maturity securities and loans, benefitting from increased reinvestment rates, although this was partly offset by lower alternative investment returns and reduced income on Fortitude Re funds withheld assets. 

AIG said it repurchased approximately 23 million shares of common stock, amounting to $1.7bn, paid out $250m in common and preferred dividends, and redeemed $500m of preferred stock, totalling $2.4bn in Q1 2024. 

The AIG board of directors has declared a quarterly cash dividend on AIG common stock of $0.40 per share, payable on 28 June 2024 to stockholders of record at the close of business on 14 June 2024. 

AIG chairman and CEO Peter Zaffino said: “AIG began 2024 with very strong momentum in delivering on our strategic and operational progress while achieving exceptional financial results, reflecting the foundational capabilities we have cultivated over the last several years.  

“In addition to outstanding profitability, this quarter was highlighted by the significant capital management actions we completed, placing AIG in a position of strength ahead of Corebridge Financial’s deconsolidation from AIG. 

“Throughout 2024, we expect to continue to build on our momentum as we execute AIG Next, deconsolidate Corebridge and deliver underwriting excellence and profitable growth, further enhancing value to AIG shareholders and positioning AIG for the future.”