Earning Date, Transcript Summary & Report

Strong Q1 Performance: AIG reported exceptional overall performance in Q1 2025, achieving adjusted after-tax income of $702 million or $1.17 per diluted share.

Net Premiums Growth: Net premiums written increased by 8% year-over-year to $4.5 billion, driven by a 10% growth in Global Commercial.

North America Insurance Premium Growth: North America Commercial Insurance net premiums written grew 14% year-over-year, with Lexington Casualty growing 27%.

Middle Market Growth: Lexington submission growth continued, increasing 30% year-over-year, indicating strong demand in the middle market casualty and property segments.

International Insurance Premium Growth: International Commercial Insurance net premiums written grew 8% year-over-year on an FX-adjusted basis, with property growth at 35%.

Expense Ratio Improvement: General insurance expense ratio improved to 30.5%, down from 31.8% in the prior year quarter, largely due to the divestiture of the travel business.

Strong Combined Ratio Performance: The accident year combined ratio was 87.8%, the best first quarter result for AIG since the financial crisis, showcasing effective management of underwriting and volatility.

Shareholder Capital Return: AIG returned $2.5 billion of capital to shareholders in Q1 2025, including $2.2 billion in share repurchases and a 12.5% increase in quarterly dividends to $0.45 per share.

Earnings Growth Outlook: The company is on track to achieve a 20%-plus earnings per share compound annual growth rate over the next three years, with strong top-line growth and managed volatility.

Joint Venture Growth Potential: AIG's joint venture with Tata Group in India is positioned for significant growth, with Tata AIG expected to continue a compound annual growth rate of 20% through 2030.

Catastrophe Loss Impact: Adjusted pre-tax income decreased by $379 million from the prior year quarter due to higher catastrophe losses, primarily related to the California wildfires.

Underwriting Income Decline: Underwriting income was down $353 million from the prior year quarter, reflecting higher catastrophe losses.

Combined Ratio Increase: The General Insurance combined ratio increased to 95.8% compared to 89.8% in the prior year quarter, including 9.1 points of CAT losses versus 1.9 points in the first quarter of 2024.

Loss Ratio Increase: The accident year loss ratio increased by 40 basis points year-over-year due to changes in business mix.

Tangible Book Value Decline: The adjusted tangible book value per share decreased by 8% from March 31, 2024, primarily due to the impact of the Corebridge deconsolidation.

Combined Ratio Challenges: The accident year combined ratio for Global Personal was 107.9%, indicating challenges in that segment despite some improvements in the underlying high-net-worth book.

Pricing Pressures in International Commercial: The overall pricing in International Commercial was slightly below loss cost trend, indicating potential pricing pressures in that segment.