What do AIG's past earnings say about stability?

American International Group's (AIG) past earnings reports indicate a company that has experienced fluctuations in stability over the past few years. Here's a detailed analysis: 1. **Net Income Trends**: AIG's net income has been volatile, with a significant decline in the most recent quarter ending on December 31, 2024, showing a loss of $926 million. This is a stark contrast to the previous quarter's net income of $3.88 billion on December 31, 2023. Such a sharp decline suggests instability in the company's financial performance. |code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code| |---|---|---|---|---|---|---| |AIG|AIG.N|American|2022|3.3651201173665872|1.1273E10|169| |AIG|AIG.N|American|2023|-65.59921937372482|3.878E9|169| |AIG|AIG.N|American|2024|-123.87828777720475|-9.26E8|169| 2. **Earnings Variations**: AIG's earnings have been inconsistent. For instance, the company reported adjusted earnings per share (EPS) of $1.77 for the first quarter of 2024, which beat the Zacks Consensus Estimate by 6.6%. However, the second-quarter earnings per share was $1.16, missing the consensus by 16.6%. This inconsistency in meeting expectations can be indicative of instability in forecasting and operational performance. 3. **Revenue Patterns**: AIG's revenue has also been variable. While the company reported operating revenues of $12.5 billion for the first quarter of 2024, which surpassed the consensus mark by 3.6%, the second-quarter revenue was $6.6 billion, which fell by 11.8% year-over-year. This significant fluctuation in revenue can be a concern for investors regarding the company's stability and market positioning. 4. **Catastrophe Losses and Underwriting Results**: The company's performance has been affected by catastrophe losses and underwriting results. For example, the second-quarter earnings were lower than expected due to increased catastrophe losses and higher general operating and other expenses. This suggests that external factors such as natural disasters and economic conditions have a significant impact on AIG's financial stability. 5. **Dividend Hike and Cost Management**: On a positive note, AIG has managed to approve a dividend hike, indicating a level of financial stability as companies typically increase dividends when they are confident in their earnings stability. Additionally, the company has been successful in managing costs, which has contributed to its positive earnings in certain quarters. In conclusion, while AIG has shown signs of instability due to volatile net income, inconsistent earnings, and fluctuating revenues, the company's ability to manage costs and recent dividend hike suggest some level of stability. However, the significant decline in net income and revenue in the most recent quarter indicates a period of instability for the company.