NEW YORK - American International Group, Inc. (NYSE: NYSE:AIG), a leading global insurance organization, has named Keith Walsh as its new Executive Vice President and Chief Financial Officer. Walsh is set to assume his role on October 21, 2024, and will report directly to AIG Chairman & CEO, Peter Zaffino.
Walsh brings over 25 years of experience in finance leadership within the financial services sector to AIG. He joins from Marsh McLennan (NYSE:MMC), where he recently held the position of Chief Financial Officer for Marsh. His professional background includes a significant tenure as Vice President and Head of Investor Relations at Marsh McLennan Companies, and 14 years as an equity research analyst at Citi, where he specialized in the insurance sector.
In his new position at AIG, Walsh will be responsible for leading the company's global Finance organization. He will be based in New York and will also join the Executive Leadership Team at AIG.
Peter Zaffino expressed confidence in Walsh's appointment, highlighting his financial expertise and investor experience in the insurance industry. Walsh himself commented on the honor of joining AIG and emphasized his commitment to enhancing shareholder value and supporting the company's stakeholders.
Walsh succeeds Sabra Purtill, who has been AIG's Chief Financial Officer since January 2023. Purtill will continue in an advisory capacity and work on strategic projects to facilitate a smooth transition.
Purtill's tenure at AIG included various senior leadership roles, contributing significantly to the company's financial performance and strategic positioning. Her accomplishments include navigating the company through the pandemic as AIG's Chief Risk Officer and focusing the company on maximizing shareholder value.
AIG operates in approximately 190 countries and jurisdictions, providing insurance solutions to businesses and individuals. The company emphasizes that its marketing name represents the worldwide operations of American International Group, Inc., with products and services written or provided by subsidiaries or affiliates.
This announcement is based on a press release statement from AIG.
In other recent news, American International Group (AIG) has been the subject of several financial institutions' reviews following its second-quarter earnings release. Deutsche Bank adjusted its price target for AIG shares to $86.00, maintaining a Buy rating, due to recent events that have influenced AIG's market performance. AIG reported a 38% year-over-year increase in earnings per share (EPS) during the second quarter of 2024. In addition, TD Cowen, Jefferies, and Piper Sandler have also adjusted their price targets for AIG.
Jefferies lowered its price target to $82 from $84, maintaining a Buy rating, after reviewing the company's cost savings and revenue projections. Piper Sandler reduced its price target for AIG from $89 to $86, maintaining an Overweight rating, due to higher-than-anticipated catastrophe losses. TD Cowen maintained its Hold rating on AIG shares but reduced the price target to $80 from $83 based on revised earnings per share estimates for 2024 and 2025.
These are recent developments that investors should be aware of. AIG reported a 38% year-over-year increase in adjusted after-tax income to $775 million in the second quarter of 2024. The company's General Insurance net premiums grew by 7%, and underwriting income reached $430 million. AIG's consolidated net investment income saw a 14% increase compared to the previous year, totaling $884 million. Despite these positive developments, AIG also expressed caution about the potential for increased losses due to natural catastrophes in the latter half of 2024.
InvestingPro Insights
As Keith Walsh steps into the role of Chief Financial Officer at AIG, the company's financial landscape presents both challenges and opportunities. According to the latest data from InvestingPro, AIG has a current market capitalization of $47.25 billion, reflecting its significant presence as a prominent player in the insurance industry. This is underscored by the company's commitment to shareholder returns, having maintained dividend payments for 12 consecutive years, with a recent dividend yield of 2.17%.
In the realm of financial health, AIG's management has been proactive, with aggressive share buybacks indicating a strong belief in the company's value. This aligns with Walsh's focus on enhancing shareholder value. However, it's important to note that analysts have revised their earnings expectations downwards for the upcoming period, and anticipate a sales decline in the current year. This context may shape Walsh's strategic priorities as he takes on his new role.
InvestingPro Tips for AIG also reveal that while the company has been profitable over the last twelve months, its short-term obligations currently exceed its liquid assets. This could be an area of focus for the new CFO to ensure financial stability and operational resilience. For investors interested in a deeper dive, there are additional InvestingPro Tips available at https://www.investing.com/pro/AIG, which can provide further insights into AIG's financial strategies and market positioning.
Investors and stakeholders alike will be watching closely to see how Walsh's extensive experience and financial acumen will guide AIG through the evolving landscape of the insurance industry and financial markets.
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