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American International Group, Inc. (AIG) is a global insurance company that operates through three main business segments: General Insurance, Life and Retirement, and Other Operations. AIG provides a wide range of insurance products and services, including property, liability, financial lines, specialty insurance, annuities, and life insurance, primarily distributed through a broad network of banks, broker-dealers, and independent agents . The company's profitability is driven by effective risk management and investment strategies, with significant revenues generated from insurance premiums, policy fees, and investment income .
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General Insurance - Offers property, liability, financial lines, and specialty insurance products for commercial and personal customers, leveraging a broad distribution network and strong risk management capabilities. This segment is divided into North America and International segments .
- North America - Provides insurance products tailored to the needs of customers in the United States and Canada.
- International - Delivers insurance solutions to customers outside of North America, adapting to diverse market requirements.
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Life and Retirement - Provides individual retirement, group retirement, life insurance, and institutional markets products, focusing on wealth accumulation and retirement income solutions. Products include fixed annuities, fixed index annuities, variable annuities, and life insurance, distributed through banks, broker-dealers, and independent agents .
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Other Operations - Comprises income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets, corporate expenses, and results from consolidated investment entities. This segment also includes General Insurance portfolios in run-off and legacy insurance lines ceded to Fortitude Re .
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Given that you have excess capital for the size of your business today, beyond share buybacks and dividends, what specific growth opportunities do you plan to pursue to deploy this capital effectively?
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Considering the favorable prior-year reserve development in short-tail lines but adverse development in older accident years for financial lines and casualty, how confident are you in the adequacy of your reserves, and what steps are you taking to mitigate potential reserve deficiencies?
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With your peers achieving returns on equity in the mid to high teens while you target a 10% core operating ROE by 2025, what specific strategies do you have to close this gap and reach peer-level profitability, and over what time frame do you expect to achieve this?
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Given that the improved ex-cat accident year loss ratio in North America Commercial was partially driven by one-off items and anomalies, how sustainable is this improvement, and what strategies do you have in place to maintain or enhance underwriting profitability in this segment amidst changing market dynamics?
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You mentioned the integration of Gen AI into your underwriting processes; how are you addressing potential risks associated with data security and privacy, and what measures are in place to ensure that AI implementation does not compromise underwriting quality and decision-making?
Competitors mentioned in the company's latest 10K filing.
- Banks - Compete in the insurance and financial services industry.
- Other life insurance companies - Compete in the insurance and financial services industry.
- Mutual fund companies - Compete in the insurance and financial services industry.
- Large multinational insurance organizations - Compete in highly competitive environments both domestically and overseas.
- Investment banks - Compete in highly competitive environments both domestically and overseas.
- Other nonbank financial institutions - Compete in highly competitive environments both domestically and overseas.
Recent developments and announcements about AIG.
Corporate Leadership
CFO Change
On September 18, 2024, AIG announced that Keith Walsh will succeed Sabra Purtill as Executive Vice President and Chief Financial Officer, effective October 21, 2024. Ms. Purtill will transition to working on strategic projects and act as an advisor to Mr. Walsh to ensure a smooth transition .