Financial Data and Key Metrics Changes - AIG reported adjusted after-tax income of $702 million, or $1.17 per diluted share, for Q1 2025, reflecting strong performance despite a challenging environment [9][10] - Net premiums written increased to $4.5 billion, an 8% year-over-year growth on a comparable basis, driven by a 10% growth in global commercial [10][34] - The general insurance expense ratio improved to 30.5% from 31.8% in the prior year quarter, primarily due to the divestiture of the travel business [11][12] Business Line Data and Key Metrics Changes - North America commercial insurance net premiums written grew 14% year-over-year, with Lexington growing 23%, led by a 27% increase in Lexington casualty [10][34] - International commercial insurance net premiums written grew 8% year-over-year on an FX adjusted basis, with property growing 35% and marine growing 17% [11][12] - The accident year combined ratio as adjusted was 87.8%, the best first quarter result for AIG since the financial crisis, compared to 88.4% in the prior year quarter [12][34] Market Data and Key Metrics Changes - The market remained favorable in Q1, particularly in segments with strong underlying fundamentals, with North America seeing rate increases led by excess casualty at 16% [14][15] - In international markets, casualty rates increased by 7% while property rates increased by 2%, offset by declines in global specialty and financial lines [17][18] - AIG returned $2.5 billion of capital to shareholders in Q1, including $2.2 billion in share repurchases and $234 million in dividends [17][18] Company Strategy and Development Direction - AIG aims to leverage its underwriting culture, reduce volatility, and enhance its capital management strategy to maximize strategic and financial flexibility [7][8] - The company is focused on deploying Gen AI across its operations to improve underwriting processes and risk assessment [7][8] - AIG is strategically positioned in the growing Indian insurance market through its joint venture with Tata Group, expecting significant growth driven by India's economic expansion [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term strategic and financial goals despite geopolitical and macroeconomic challenges [9][10] - The company anticipates a 20% plus earnings per share compound annual growth rate over the next three years and aims for a core operating ROE of 10% to 13% [30][31] - Management highlighted the importance of monitoring tariff impacts and inflation on underwriting pricing and loss costs [27][29] Other Important Information - AIG's book value per share increased by 10% year-over-year to $71.38, while adjusted tangible book value per share decreased by 8% to $67.96 due to the impact of CorBridge deconsolidation [45][46] - The company has a debt to total capital ratio of 17.1% and parent liquidity of $4.9 billion, indicating strong financial flexibility [18][46] Q&A Session Summary Question: Inquiry on the transformation to using GenAI - Management explained that the transformation began with digitizing workflows and improving data quality, enabling the adoption of GenAI to enhance underwriting processes [52][53] Question: North America commercial pricing metrics - Management acknowledged headwinds in property pricing but emphasized strong technical pricing and positive trends in casualty rates [55][56] Question: Underwriting pricing policy in light of tariff uncertainty - Management indicated that they are cautious and building risk margins into pricing to account for potential impacts from tariffs and inflation [75][76] Question: Impact of expenses moving from other operations to general insurance segments - Management clarified that while expenses are expected to remain stable, the integration of costs from other operations into general insurance segments has been managed effectively [78][80] Question: M&A environment and capital deployment - Management stated that the uncertainty does not change their disciplined approach to acquisitions, focusing on long-term value and strategic fit [84][85]

Financial Data and Key Metrics Changes - AIG reported adjusted after-tax income of $702 million, or $1.17 per diluted share, for Q1 2025, reflecting strong performance despite a challenging environment [11][12] - Net premiums written increased to $4.5 billion, an 8% year-over-year growth on a comparable basis, driven by a 10% growth in global commercial [12][36] - The general insurance expense ratio decreased to 30.5% from 31.8% in the prior year quarter, primarily due to the divestiture of the travel business [13][14] Business Line Data and Key Metrics Changes - North America commercial insurance net premiums written grew 14% year-over-year, with Lexington growing 23%, led by a 27% increase in Lexington casualty [12][36] - International commercial insurance net premiums written grew 8% year-over-year on an FX adjusted basis, with property growing 35% and marine growing 17% [12][13] - The accident year combined ratio as adjusted was 87.8%, the best first quarter result for AIG since the financial crisis, compared to 88.4% in the prior year quarter [14][36] Market Data and Key Metrics Changes - In North America, rate increases were led by excess casualty at 16%, while financial lines decreased by 5% and retail property decreased by 7% [16][17] - Internationally, casualty had a 7% rate increase, while property had a 2% increase, offset by a 14% decrease in global specialty and a 3% decrease in financial lines [19][20] - The overall market remained favorable, particularly in segments with strong underlying fundamentals [15][16] Company Strategy and Development Direction - AIG aims to leverage its diverse geographic footprint and strong product offerings to meet clients' risk needs, with a focus on deploying Gen AI across its operations [9][10] - The company is committed to maintaining a disciplined capital management strategy, with plans to repurchase $5 billion to $6 billion of shares in 2025 [20][35] - AIG is focusing on its joint venture in India, Tata AIG, which is expected to grow at a compound annual growth rate of 20% through 2030, driven by India's accelerating economy and rising insurance adoption [21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term strategic and financial goals despite geopolitical and macroeconomic challenges [11][12] - The company anticipates that net retained catastrophe losses will remain within expectations for 2025, largely due to its reinsurance structures [15][19] - AIG expects to achieve a core operating ROE of over 10% in 2025, with a focus on maintaining an expense structure aligned with the company's size [34][49] Other Important Information - AIG returned $2.5 billion of capital to shareholders in Q1 2025, including $2.2 billion in share repurchases and $234 million in dividends [20][35] - The adjusted effective tax rate for Q1 was 22.8%, with expectations for the full year to align with 2024 levels [47][48] - Book value per share increased by 10% year-over-year to $71.38, while adjusted tangible book value per share decreased by 8% to $67.96 due to the impact of the CorBridge deconsolidation [48][49] Q&A Session Summary Question: Can you elaborate on the transformation to using GenAI? - Management indicated that the transformation began with digitizing workflows and improving data quality, enabling the adoption of GenAI to enhance underwriting processes [54][55] Question: What is the current pricing environment in North America? - Management acknowledged some headwinds in property pricing but emphasized strong technical pricing for good returns, with casualty rates remaining robust [57][60] Question: How does uncertainty around tariffs affect underwriting pricing? - Management stated that they are cautious and are building risk margins into pricing to account for potential impacts from tariffs and inflation [78][82] Question: Will the expense impact from other operations continue throughout 2025? - Management expects the expense levels seen in Q1 to be reflective of the overall year, with a focus on maintaining a lean operating model [83][85] Question: How does the current environment affect M&A strategy? - Management remains disciplined in pursuing acquisitions, focusing on long-term value and opportunities that align with AIG's strategic goals [89][90]

First Quarter 2025 Financial Results Presentation May 2, 2025 Copyright ® 2025 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Q1 2025 Earnings Key Themes 1. NPW on a comparable basis reflects constant dollar basis adjustments and the sale of AIG's Travel business in 2024. NPE on a comparable basis reflects the sale of AIG's Travel business in 2024. Refer to page 26 for more detail. * Refers to fina ...

Core Insights - American International Group (AIG) reported a revenue of $6.62 billion for Q1 2025, marking a 47% decline year-over-year and falling short of the Zacks Consensus Estimate of $6.79 billion, resulting in a surprise of -2.59% [1] - The earnings per share (EPS) for the same quarter was $1.17, down from $1.77 a year ago, but exceeded the consensus estimate of $1.05 by 11.43% [1] Financial Performance Metrics - AIG's shares have returned -7.1% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3] - General Insurance combined ratio was reported at 95.8%, better than the average estimate of 96.7% from four analysts [4] - The expense ratio for General Insurance was 30.5%, compared to the estimated 31.1% [4] - The loss ratio for General Insurance was 65.3%, slightly better than the 65.6% average estimate [4] - North America Commercial loss ratio was reported at 71.8%, compared to the estimated 71.2% [4] - North America Commercial combined ratio was 93.9%, better than the estimated 94.9% [4] - Net premiums earned in General Insurance were $5.77 billion, below the average estimate of $5.86 billion, reflecting a -0.3% year-over-year change [4] - Net investment income for General Insurance was $736 million, lower than the average estimate of $809.75 million, representing a -3.4% year-over-year change [4] - International Commercial net premiums earned were $2.05 billion, below the estimated $2.10 billion [4] - Global Personal net premiums earned were $1.59 billion, compared to the estimated $1.74 billion [4] - Other Operations reported net investment income and other at $110 million, exceeding the average estimate of $96.73 million, showing a significant year-over-year increase of 358.3% [4] - North America Commercial net premiums earned were $2.12 billion, slightly above the average estimate of $2.06 billion [4] - Total net investment income was reported at $1.11 billion, surpassing the average estimate of $933.40 million, but reflecting a substantial year-over-year decline of 71.7% [4]

Group 1: Earnings Performance - American International Group (AIG) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, but down from $1.77 per share a year ago, representing an earnings surprise of 11.43% [1] - The company posted revenues of $6.62 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.59%, and down from $12.47 billion year-over-year [2] - Over the last four quarters, AIG has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - AIG shares have increased approximately 12% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The future performance of AIG's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.69 on revenues of $6.99 billion, and for the current fiscal year, it is $6.15 on revenues of $27.84 billion [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AIG's stock performance [5]

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].

Insurance provider American International Group, Inc. (AIG) is set to report its first-quarter 2025 results on May 1, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.05 per share on revenues of $6.79 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The first-quarter earnings estimate declined by 6 cents over the past 60 days. The bottom-line projection indicates a year-over-year decline of 40.7%. Als ...

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]