What drove AIG's earnings growth in 2024?

American International Group (AIG) experienced a significant decline in net income in 2024, with a reported $926 million loss. Despite this, there are several factors that contributed to the company's earnings growth: 1. **Strategic Gains and Underwriting Strength**: AIG's General Insurance segment reported a 19% increase in underwriting income, reaching $596 million. This improvement reflects enhanced underwriting profitability and reflects AIG's disciplined approach to underwriting and risk management. 2. **Investment Income**: The company's total net investment income rose by 11% to $3.9 billion, driven by higher income from fixed maturity securities and loans. This increase contributed significantly to the overall earnings growth. 3. **Dividend and Shareholder Returns**: AIG returned $2.4 billion to shareholders through stock repurchases and dividends, including an 11% increase in the quarterly dividend to $0.40 per share. These actions demonstrate the company's commitment to shareholder value and contributed to the positive market perception. 4. **Premium Growth in Commercial Lines**: The North America Commercial segment showed strong growth, with an 11% increase in net premiums written year-over-year. This segment's performance highlights the effectiveness of AIG's business expansion strategies. In summary, AIG's earnings growth in 2024 was driven by strategic underwriting gains, investment income, shareholder returns, and premium growth in commercial lines. These factors collectively contributed to the company's robust financial performance despite the overall net loss.