Financial Performance - AIG reported net premiums written (NPW) of $4.5 billion for Q1 2025, flat year-over-year on a reported basis but up 8% on a comparable basis[6]. - Net income attributable to AIG common shareholders was $698 million, or $1.16 per diluted share, down from $1.2 billion, or $1.74 per diluted share, in the prior year quarter[10]. - Total net investment income for Q1 2025 was $1.1 billion, a 13% increase from $979 million in the prior year quarter[12]. - AIG reported a pre-tax income of $1,058 million for the three months ended March 31, 2024, with a net income attributable to AIG common shareholders of $1,194 million[48]. - The adjusted pre-tax income attributable to AIG common shareholders was $1,153 million, while the adjusted after-tax income was $862 million for the same period[48]. - Net income attributable to AIG common shareholders decreased by 32.6% to $1.18 in 2025 from $1.75 in 2024[54]. Shareholder Returns - AIG returned approximately $2.5 billion to shareholders in Q1 2025, including $2.2 billion in share repurchases and $234 million in dividends[13]. - The Board of Directors approved a 12.5% increase in the quarterly dividend to $0.45 per share, marking the third consecutive year of double-digit percentage increases[5]. - Basic earnings per share from continuing operations increased by 3.5% to $1.18 for the three months ended March 31, 2025, compared to $1.14 in 2024[54]. Insurance Operations - Global Commercial NPW increased to $3.2 billion, reflecting a 10% growth year-over-year, with North America Commercial growing 14% and International Commercial growing 8%[4]. - The General Insurance combined ratio was 95.8%, an increase from 89.8% in the prior year quarter, primarily due to higher catastrophe charges[17]. - The accident year combined ratio, as adjusted, was 87.8%, the best first quarter results since the financial crisis[3]. - The combined ratio for the first quarter was 107.9%, an increase from 98.3% in the prior year quarter, primarily due to the impact of January California wildfires[21]. - Net premiums written for the first quarter of 2025 were $1.3 billion, a decline of 14% from the prior year quarter, but a growth of 3% on a comparable basis driven by Personal Auto growth[21]. - The accident year combined ratio for North America Commercial was adjusted to 84.3 in 2025 from 85.9 in 2024[61]. Investment Performance - AIG's net investment income from General Insurance was $814 million, while the net investment income from Other Operations was a loss of $133 million[52]. - Net investment income and other for the first quarter increased by $37 million to $73 million, attributed to dividend income from Corebridge[22][25]. - Net investment income on a consolidated basis increased to $1,105 million for the three months ended March 31, 2025, from $979 million in 2024[54]. Financial Position - The debt to total capital ratio was 17.1% as of March 31, 2025, indicating a strong balance sheet position[14]. - Total financial and hybrid debt stood at $8,558 million as of March 31, 2025, with total capital at $50,017 million[58]. - Total adjusted common shareholders' equity rose to $53,249 million as of March 31, 2024, up from $44,726 million at the end of 2024[56]. - Book value per share increased by 10.4% to $64.66 as of March 31, 2024, compared to $70.16 at the end of 2024[56]. - AIG's core operating book value per share was $61.72 as of March 31, 2025, reflecting a slight decrease from $61.75 in 2024[56]. Operational Efficiency - Corporate and other general operating expenses improved by $73 million from the prior year quarter, achieving a run-rate target of $85 million in the first quarter of 2025[25]. - The company is on track to achieve a target operating structure of $350 million in annual expenses for 2025[25]. - Interest expense decreased by $24 million from the prior year quarter, primarily due to debt reduction[25]. Forward-Looking Statements - AIG expects to achieve a Core Operating Return on Equity (ROE) of 10%+ for the full year 2025, supported by significant strategic and financial flexibility[8]. - Forward-looking statements indicate potential risks including economic conditions, catastrophic events, and regulatory changes that may affect future results[26][27]. Miscellaneous - AIG will host a conference call on May 2, 2025, to review these results, accessible via a live webcast[23]. - The adjusted return on equity is used to show the rate of return on common shareholders' equity excluding Investments AOCI, providing insight into underlying profitability[38]. - The company experienced a net loss reserve discount charge of $76 million in the reported period[52]. - Integration and transaction costs associated with acquiring or divesting businesses amounted to $3 million in the first quarter of 2024[52]. - AIG recorded a net loss from discontinued operations of $803 million, reflecting the impact of divestitures[48]. - Changes in the fair values of equity securities and AIG's investment in Corebridge resulted in a loss of $88 million[48]. - The company reported net realized losses on Fortitude Re funds withheld assets totaling $55 million[48].

Industry Overview - Continued improved pricing, exposure growth, portfolio streamlining, solid retention, renewals, reinsurance agreements, and accelerated digitalization are expected to have boosted insurance stocks' performance in the March quarter [1] - The total earnings of finance companies for the first quarter are anticipated to rise by 8.2% year-over-year, with revenues expected to improve by 3.3% [2] Performance Factors - Solid retention, exposure growth across business lines, and improved pricing are likely to have boosted premiums, with the commercial insurance sector seeing a composite rate increase of 3% and personal lines composite rate increasing by 4.9% in Q1 2025 [3] - Auto premiums are likely to have improved due to increased travel, while a low unemployment rate is expected to aid commercial and group insurance [4] - The aging U.S. population is expected to maintain strong demand for life insurance and protection products, contributing to steady premium inflows [6] - The insurance industry's increased use of technology such as blockchain, AI, and advanced analytics is likely to have curbed costs and aided margins [7] Company-Specific Insights - Arthur J. Gallagher & Co. (AJG) is expected to benefit from solid performance in both segments, with new business, solid retention, and higher renewal premiums [10] - The Zacks Consensus Estimate for AJG's earnings is pegged at $3.57, indicating a 2.2% increase year-over-year, with revenues expected at $3.75 billion, implying 16.4% growth [11] - Reinsurance Group of America (RGA) is expected to benefit from solid performance in various segments, with rising premiums and net investment income, although rising costs may constrain profit expansion [12] - The Zacks Consensus Estimate for RGA's earnings is pegged at $5.33 per share, indicating an 11.4% decline year-over-year, with revenues expected at $5.74 billion, implying a 7.2% decrease [13] - American International Group (AIG) anticipates a 1.3% year-over-year growth in General Insurance net premiums earned, but with expected declines in North America and International units [14] - The Zacks Consensus Estimate for AIG's earnings is pegged at $1.05 per share, indicating a 40.6% decline year-over-year, with revenues expected at $6.79 billion, signaling a 45.5% decline [15]

Group 1 - American International Group, Inc. (NYSE: AIG) has made significant progress in improving its underwriting performance in recent years, although it still has a weaker underwriting capability compared to its peers [1] - The article highlights the expertise of Labutes IR, a fund manager/analyst with over 18 years of experience in the financial sector, indicating a knowledgeable perspective on the industry [1]

Group 1 - Albert Anthony is a Croatian-American media personality active on investor platforms like Investing.com and Seeking Alpha, with over 1,000 followers since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing series of articles on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in the IT department of a top-10 financial firm [1] Group 2 - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1] - The focus of the Future Investor Fund is on building a dividend portfolio, indicating a strategy aimed at generating income through dividends [1] - Albert Anthony has completed various degrees and certifications from institutions such as Drew University and UVA Darden School of Business, enhancing his expertise in finance [1]

Core Viewpoint - American International Group (AIG) is positioned well to continue its trend of beating earnings estimates in upcoming reports, particularly due to its strong historical performance in earnings surprises [1]. Earnings Performance - AIG has consistently surpassed earnings estimates, achieving an average beat of 6.01% over the last two quarters [2]. - In the most recent quarter, AIG reported earnings of $1.30 per share against an expectation of $1.26, resulting in a surprise of 3.17% [2]. - For the previous quarter, AIG's earnings of $1.23 per share exceeded the consensus estimate of $1.13, yielding a surprise of 8.85% [2]. Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for AIG, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - AIG currently has an Earnings ESP of +4.40%, suggesting analysts are optimistic about the company's earnings prospects [8]. Earnings ESP Explanation - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Many companies beat consensus EPS estimates, but this is not the sole reason for share price gains; some stocks may remain stable even with a miss [10]. - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell before earnings reports [10].

Group 1 - The report titled "Enterprise Tech Ecosystem Series: AIG 2025" provides insights into AIG's technology activities, including digital transformation strategies and innovation programs [1][3] - AIG is a multi-line insurance group offering a wide range of insurance products and financial services to individuals and businesses [2] - The report covers various aspects of AIG's technology initiatives, including partnerships, product launches, and estimated ICT budgets [6] Group 2 - Key topics in the report include digital transformation strategy, accelerators, incubators, innovation programs, and technology focus [6] - Insights into AIG's technology operations, strategies, and innovation initiatives are provided, along with details on technology themes and benefits [6] - The report also includes information on key executives and notable partnerships with companies such as AWS, BlackRock, and Duck Creek Technologies [6]

Core Insights - Salama has appointed Mohamed Ali Bouabane as the new Group Chief Executive Officer, aiming to enhance its growth and digital transformation strategy [1][2][3] - Bouabane brings over two decades of experience in the insurance sector, having previously served as CEO of AIG GCC & North Africa, which positions him well to lead Salama's expansion efforts [2][3] - The company emphasizes its commitment to delivering innovative insurance solutions and enhancing customer experience under Bouabane's leadership [3] Company Overview - Salama Islamic Arab Insurance Company is one of the largest Shariah-compliant Takaful providers, listed on the Dubai Financial Market, with a paid-up capital of AED 939 million [4] - Established in 1979, Salama has been a pioneer in the Takaful industry, recognized for its customer-centric approach and diverse range of Takaful solutions [5] - The company offers competitive family, motor, general, and health Takaful solutions, catering to individual and corporate customers in the UAE, Egypt, and Algeria [5]

Company Overview - American International Group (AIG) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price change of 9.46% since the beginning of the year [3] Dividend Information - AIG currently pays a dividend of $0.4 per share, resulting in a dividend yield of 2.01%, which is higher than the Insurance - Multi line industry's yield of 1.6% and the S&P 500's yield of 1.54% [3] - The annualized dividend of $1.60 represents a 2.6% increase from the previous year [4] - Over the past five years, AIG has increased its dividend twice on a year-over-year basis, with an average annual increase of 4.96% [4] - The current payout ratio is 29%, indicating that AIG paid out 29% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - AIG is expecting earnings to grow this fiscal year, with the Zacks Consensus Estimate for 2025 at $6.25 per share, reflecting a 26.26% increase from the previous year [5] Investment Considerations - AIG is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is viewed as a solid dividend option, particularly in contrast to high-growth businesses or tech start-ups that typically do not offer dividends [7]

Industry Overview - The Zacks Multiline Insurance industry includes companies that provide various insurance coverages, allowing customers to pay a single premium for multiple products, which enhances customer retention and reduces concentration risk [3][4] - The industry is experiencing increased demand for protection products, particularly in life insurance, driven by heightened awareness and customized offerings [4] Trends Impacting the Industry - Product diversification is helping industry players mitigate concentration risk and improve revenue generation [1] - Accelerated digitalization and the adoption of embedded insurance are expected to drive growth, with global premiums from embedded insurance projected to exceed $722 billion by 2030 [1][6] - The transition to green energy and the rise of cyber insurance due to increased AI adoption present new growth opportunities [4][6] Mergers and Acquisitions - The solid capital levels of multiline insurers are expected to fuel M&A activities, with a focus on diversifying operations and gaining market share [2][5] - Consolidation is anticipated to rise in 2024, particularly among insurance technology companies [5] Financial Performance - The Multiline Insurance industry has underperformed compared to the Finance sector and the S&P 500, with a collective gain of 11.1% over the past year, while the Finance sector increased by 25.6% and the S&P 500 rose by 24.1% [11] - The industry's Zacks Industry Rank is 128, placing it in the bottom 48% of 251 Zacks industries, reflecting a negative earnings outlook with a 28.1% downward revision in earnings estimates for the current year [8][9] Current Valuation - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 2.38X, compared to the S&P 500's 8.07X and the sector's 3.71X [13] Company Highlights - **Radian Group**: Focused on mortgage insurance, with a strong capital position and expected growth driven by new business and increasing persistency [17][18] - **CNO Financial Group**: Offers a range of insurance products with a projected earnings increase of 10.3% for 2026 [20][21] - **MetLife**: A global financial services company with a focus on growth potential and cost control, expecting a 19% increase in earnings for 2025 [23][24] - **American International Group (AIG)**: Growth driven by strategic de-risking and acquisitions, with a projected earnings increase of 27.7% for 2025 [26][27] - **Prudential Financial**: Strong asset-based businesses and a competitive edge expected to drive long-term growth, with a projected earnings increase of 13.6% for 2025 [29][30]

Financial Performance - AIG reported adjusted earnings of $1.30 per share for the fourth quarter, surpassing market estimates of $1.23 per share [1] - General Insurance net premiums written reached $6.1 billion, reflecting a 6% year-over-year increase on a reported basis [1] Strategic Achievements - In 2024, AIG executed multiple complex strategic and operational priorities, resulting in outstanding financial results and exceptional value for clients and stakeholders [2] - The company strengthened its capital structure and improved financial performance, achieving a historic milestone with the deconsolidation of Corebridge Financial, which allowed for the organization of its business into three distinct operating segments [2] Market Reaction - Following the earnings announcement, AIG shares fell 0.6% to close at $76.40 [3] - Analysts adjusted their price targets for AIG, with Keefe, Bruyette & Woods raising it from $87 to $90, while Morgan Stanley increased it from $75 to $76 [4]