Core Insights - American International Group, Inc. (AIG) is a global insurance company with a market capitalization of $50.3 billion, providing various insurance and financial services across more than 80 countries [2][3] - AIG has experienced a year-to-date gain of 20%, significantly outperforming the industry average of 5.5% [2][10] - The Zacks Consensus Estimate for AIG's 2025 earnings is $6.24 per share, reflecting a 26.1% year-over-year increase, with expected revenues of $27.4 billion [4] Financial Performance - AIG's net premium written (NPW) increased by 8% year-over-year in Q1 2025, with the North America Commercial segment rising by 14% and the international commercial segment by 5% [6][10] - The company has a forward P/E ratio of 12.67X, higher than the industry average of 9.05X, indicating growing investor confidence [3] Growth Drivers - AIG's growth is driven by increased NPW, high retention rates, and new business generation, particularly in the General Insurance segment [5] - Tata AIG, a high-growth business, has achieved a compounded annual growth rate (CAGR) of 20% and is expected to maintain this growth through 2030 [7] Capital Management - AIG maintains a strong liquidity position with a solid cash balance and reduced debt levels, allowing for prudent capital deployment through share buybacks and dividend payments [8] - In May 2025, AIG announced a quarterly dividend increase of 12.5%, reflecting its strong financial health [8] Challenges - AIG faces challenges with a deteriorating combined ratio due to catastrophe losses, particularly from California wildfires, impacting its underwriting margins [9][11]