Financial Data and Key Metrics Changes - AIG reported adjusted after-tax income per diluted share of $1.81, a 56% increase year over year [7] - Adjusted after-tax income for the quarter was $1 billion, up 35% from the prior year, driven by the general insurance business [7] - Net investment income on an adjusted pretax basis was $955 million, an increase of 9% year over year [7] - The accident year combined ratio as adjusted was 88.4%, while the calendar year combined ratio improved to 89.3%, a 320 basis point improvement from the prior year quarter [8][37] - AIG returned $2 billion of capital to shareholders, bringing the year-to-date total to $4.5 billion [8] Business Line Data and Key Metrics Changes - Net premiums written were $6.9 billion, a 1% increase year over year, with 3% growth in global commercial [10] - North America commercial insurance net premiums written increased 4% year over year, with a notable 11% increase excluding property [11] - Retail casualty and Lexington casualty each increased by 19%, while retail property and Lexington property saw an 8% decline [11] - International commercial insurance net premiums written increased by 1%, driven by modest growth in casualty and global specialty [12] Market Data and Key Metrics Changes - Global commercial produced strong new business of nearly $1.4 billion, a 7% increase from the prior year quarter [12] - The submission count in the Lexington business increased by 28% year over year, indicating strong demand [13] - Global personal net premiums written decreased by 3%, impacted by a high net worth quota share reinsurance treaty [14] Company Strategy and Development Direction - AIG is focused on maintaining its US property portfolio while managing risk-adjusted returns and being cautious in growth due to market conditions [24] - The company aims to reduce its general insurance expense ratio below 30% by 2027 [37] - AIG NEXT initiative has delivered $500 million in savings and operational improvements, with a total of $530 million in annual run rate expense savings achieved [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 10% plus core operating ROE target in 2025, despite a dynamic macro and insurance market [52] - The company is well-positioned for growth, with significant opportunities in casualty and specialty lines, despite some rate pressure [66][72] - Management noted that social inflation is a long-term issue, but AIG's strong brand and financial strength make it an attractive partner for clients [84] Other Important Information - AIG's major insurance subsidiaries received financial strength upgrades from S&P to AA- and Moody's to A1 during the quarter [51] - The company sold $430 million worth of Corbridge Financial shares, reducing its stake to approximately 21% [8] - Book value per share increased to $74.14, up 8% from the previous year [52] Q&A Session Summary Question: Property pricing implications and combined ratio targets - Management clarified that reinsurance benefits the original pricing, and they do not expect significant headwinds in underwriting despite potential combined ratio increases [56][60] Question: Capital situation if growth outlook is not as expected - Management indicated that if capital cannot be deployed for growth, it would be returned to shareholders, but they believe there are opportunities for growth in the current environment [62][64] Question: Reapportionment of reserves to accident years '21 and '22 - Management explained that the reapportionment is a prudent measure and does not indicate deterioration in the underlying portfolio [80][81] Question: Demand for liability coverage due to social inflation - Management noted a strong demand for underwriting companies with expertise in casualty lines, indicating a flight to quality among buyers [84]

Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, driven by record underwriting, strong investment results, and premium revenue growth [5][6] - Core operating income was $2.5 billion, a 13% increase, indicating broad-based growth across the company's diversified operations [6] - Adjusted net investment income was nearly $1.7 billion, up 8%, with a fixed income portfolio yield of 5.1% [8][9] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter, with an annualized core operating return on tangible equity of 21% [9][22] Business Line Data and Key Metrics Changes - North America P&C premiums, excluding agriculture, increased by 5.3%, with personal insurance growing by 9.1% and commercial by 4.1% [12] - The life insurance division saw premiums grow almost 17.5%, while global P&C premiums grew 5.86% in constant dollars [10][12] - The middle market and small commercial segments showed strong growth, with premiums in the leading middle market division up 8.4% [13] Market Data and Key Metrics Changes - In North America, casualty pricing increased by 11.6%, while financial lines pricing decreased by 1.2% [15] - Internationally, premiums grew 8.5% or over 10% in constant dollars, with Asia growing over 12.5% and Latin America over 17% [17] - The London wholesale business saw premiums rise over 7%, while the international retail commercial business experienced a slight increase in P&C pricing [18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is stepping away from unprofitable large account property business while focusing on middle market and small commercial growth [11][20] - The management highlighted the importance of global diversification and a talented workforce to support long-term growth [20] - The company is actively pursuing opportunities in emerging markets, particularly in Latin America and Asia, with expectations of double-digit growth [44][58] Management's Comments on Operating Environment and Future Outlook - The management noted a dynamic economic and geopolitical environment, with potential headwinds from budget deficits and trade policies, but remains confident in the company's fundamentals and growth prospects [19][20] - The company expects continued growth in both revenue and earnings, supported by a disciplined approach to underwriting and a diversified portfolio [20][22] Other Important Information - The company authorized a new $5 billion share repurchase program, reflecting confidence in its capital management strategy [22] - The quarter produced adjusted operating cash flow of $3.2 billion, supporting ongoing investments [22] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and emphasized the need for public policy reform to address these issues [28][30] Question: Growth in Latin America - Management highlighted strong growth in Mexico and Argentina, driven by various segments including auto and small commercial [41][44] Question: Stability of global P&C growth - Management confirmed that growth remains durable, particularly in middle market and small commercial segments, despite stepping away from some large account property business [53][54] Question: Medical cost inflation's effect on workers' comp - Management clarified that medical inflation trends differ from those affecting workers' comp, and they are using conservative factors in reserving [71] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened in response to social inflation, impacting coverage demands [75][76] Question: Breakdown of international growth - Management explained that growth is driven by new buyers and industries, alongside market share gains [79][80] Question: Investment income trends - Management indicated that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [99][100] Question: Share buybacks strategy - Management stated that share buybacks will be flexible based on market conditions and opportunities, with a recent authorization for $5 billion in repurchases [106] Question: Reinsurance market attractiveness - Management mentioned a disciplined approach to reinsurance, avoiding trades they deemed unattractive [110]

Financial Data and Key Metrics Changes - Core operating EPS reached a record $6.14, up 14% year-over-year, supported by record underwriting and strong investment results [5][6] - Core operating income was $2.5 billion, a 13% increase from the previous year [6] - Published underwriting income was $1.6 billion, up 15% year-over-year, leading to a combined ratio of 85.6, an improvement of over one percentage point [7] - Adjusted net investment income was nearly $1.7 billion, an 8% increase [7] - Tangible book value per share grew 23.7% year-over-year and 8% from the previous quarter [8] Business Line Data and Key Metrics Changes - North America P&C premiums excluding agriculture grew 5.3%, with personal insurance up 9.1% and commercial up 4.1% [12] - Premiums in the life insurance division grew almost 17.5% [10] - Middle market and small commercial property lines showed disciplined growth, with rates continuing to rise [11] - Casualty pricing in North America increased by 11.6% [15] - International general insurance operations saw premiums up 8.5% or over 10% in constant dollars [16] Market Data and Key Metrics Changes - Global P&C premiums grew 5.86% in constant dollars, with commercial up 4.2% and consumer up 11.9% [10] - Asia's premiums grew over 12.5% in constant dollars, while Europe and Latin America grew over 8% and 17%, respectively [17] - In the U.S., large account commercial property pricing has become competitive, leading to price softening [10][18] Company Strategy and Development Direction - The company emphasizes disciplined underwriting and is not pursuing business below adequate pricing [11] - Focus on growth in middle market and small commercial segments, which are expected to continue expanding [59] - The company is leveraging its global diversification and a talented workforce to drive growth [21] - Continued investment in digital and direct marketing strategies in Latin America and Asia [44][59] Management's Comments on Operating Environment and Future Outlook - Management noted a complex economic environment with potential headwinds from budget deficits and trade policies [20] - The company expects continued growth in both revenue and earnings, driven by strong fundamentals and market positioning [21] - Management remains optimistic about the durability of growth in the majority of its business segments [56] Other Important Information - The company authorized a new $5 billion share repurchase program [23][24] - Adjusted net investment income is expected to be approximately $1.72 billion to $1.74 billion next quarter [27] - The company closed on the acquisition of Liberty Mutual's P&C business in Thailand, which slightly diluted tangible book value growth [25] Q&A Session Summary Question: Impact of litigation challenges on casualty and general liability coverages - Management discussed the inflationary impact of litigation costs and the need for public policy reform to address these issues [32][33] Question: Growth in Latin America - Management highlighted strong growth driven by significant presence in Mexico and partnerships in Brazil and Chile [44][46] Question: Potential phase-out of FEMA and its impact on high net worth business - Management indicated that while FEMA provides modest coverage, the private flood market is growing and Chubb is well-positioned [50] Question: Stability of global P&C growth - Management confirmed that growth remains stable and durable, particularly in middle market and small commercial segments [56] Question: Sensitivity of large domestic accounts to social inflation - Management noted that terms and conditions have tightened due to increased litigation and social inflation, impacting coverage demand [78] Question: Investment income trends - Management explained that recent flatlining of investment income was due to lower-than-expected private equity income, but expects growth moving forward [102] Question: Reinsurance market attractiveness - Management stated that growth in the reinsurance business was muted due to a disciplined approach to underwriting [110] Question: Capital management and share buybacks - Management emphasized a flexible approach to capital deployment, balancing between supporting insurance business and returning capital to shareholders [112]

Financial Data and Key Metrics Changes - Net income per diluted share increased by 8.7% year-over-year to $1 per share, with an annualized return on beginning of year equity of 19.1% [11] - Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20% [11] - Stockholders' equity increased by more than $380 million or 4.3% to a record $9.3 billion [15] Business Line Data and Key Metrics Changes - The Insurance segment's accident year loss ratio excluding catastrophes was relatively flat year-over-year at 60.7%, with a combined ratio before catastrophes of 89% [13] - The Reinsurance and Monoline Excess segment's accident year loss ratio excluding catastrophes increased to 54.1%, with a strong combined ratio before catastrophes of 83.8% [13] - Net premiums earned reached a record of $3.1 billion, while net premiums written increased to a record $3.4 billion, showing growth across all lines of business [13] Market Data and Key Metrics Changes - The property market is becoming more competitive, particularly for larger accounts, while smaller accounts face less competition [19][20] - The commercial transportation market continues to see activity from Managing General Agents (MGAs), pushing for rate increases [20] - The professional liability market is mixed, with public Directors and Officers (D&O) insurance beginning to stabilize, while private and non-profit D&O remains competitive [21] Company Strategy and Development Direction - The company is focused on achieving appropriate risk-adjusted returns and is optimistic about growth opportunities in the liability market over the next 12 to 36 months [32] - The company is maintaining a defensive posture in certain areas while leaning into higher hazard, more specialized lines of business [70] - The company is cautious about the competitive dynamics in the reinsurance market, particularly regarding ceding commissions and discipline in casualty lines [25][114] Management's Comments on Operating Environment and Future Outlook - Management highlighted concerns about economic inflation, labor market dynamics, and the resilience of U.S. consumer spending as macroeconomic factors impacting the business [7][9] - The company is optimistic about its ability to manage through potential challenges related to tariffs and labor costs, while also focusing on pricing strategies [45][88] - Management expressed confidence in the investment portfolio's positioning and the potential for improved investment income [31][94] Other Important Information - The company paid ordinary and special dividends totaling $224 million in the quarter, contributing to a growth in book value per share of 6.8% for the quarter and 14.3% year-to-date [16] - The effective tax rate for the quarter was 23.2%, exceeding the U.S. statutory rate due to taxes on foreign earnings and state income taxes [15] Q&A Session Summary Question: Growth potential in the current environment - Management adjusted growth expectations to a range of 8% to 12% from the previous 10% to 15% due to recent market conditions [38] Question: Underlying loss ratio dynamics - The underlying loss ratio remains primarily influenced by business mix, with no unusual factors noted [39] Question: Impact of tariffs and labor costs - Management indicated that current loss activity does not reflect significant impacts from tariffs or labor costs, but they are monitoring the situation closely [45] Question: Trajectory of margins - Management believes that current rates are positioning the company well for future improvements, but cautioned against premature conclusions [47] Question: Capital management and share buybacks - The decision not to repurchase shares was based on maintaining surplus capital for future opportunities, with a focus on special dividends as a more efficient return method [52] Question: Medical inflation and its impact - Management is closely monitoring medical inflation and its potential effects on workers' compensation and stop-loss portfolios, with sensitivity analyses conducted [65] Question: Competitive dynamics in the private client business - The company is experiencing traction in the private client space due to its expertise and value proposition, despite not being the cheapest option [126]

Financial Data and Key Metrics Changes - Net income per diluted share increased by 8.7% year-over-year to $1 per share, with an annualized return on beginning of year equity of 19.1% [9] - Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20% [10] - Stockholders' equity increased by more than $380 million or 4.3% over the year to a record $9.3 billion [13] Business Line Data and Key Metrics Changes - The Insurance segment's accident year loss ratio excluding catastrophes was relatively flat year-over-year at 60.7%, with a combined ratio before catastrophes of 89% [11] - The Reinsurance and Monoline Excess segment's accident year loss ratio excluding catastrophes increased to 54.1%, with a strong combined ratio before catastrophes of 83.8% [11] - Net premiums earned reached a record of $3.1 billion, while net premiums written increased to a record $3.4 billion in the quarter [11] Market Data and Key Metrics Changes - The property market is becoming more competitive, particularly for larger accounts, while smaller accounts face less competition [16][17] - The commercial transportation market is experiencing significant activity from Managing General Agents (MGAs), pushing for rate increases [18] - The professional liability market shows mixed results, with public Directors and Officers (D&O) insurance beginning to stabilize [20] Company Strategy and Development Direction - The company is focused on achieving appropriate risk-adjusted returns and is optimistic about growth opportunities in the liability market over the next 12 to 36 months [30] - The company is maintaining a selective approach to underwriting in the competitive property market, ensuring pricing adequacy [93] - The company is evaluating opportunities in the MGA space but remains cautious about valuations [75] Management's Comments on Operating Environment and Future Outlook - Management highlighted concerns about macroeconomic factors such as inflation, labor market dynamics, and consumer spending, which could impact underwriting and investment strategies [6][7] - The company is optimistic about its ability to manage through potential challenges related to tariffs and labor costs, while also focusing on maintaining strong cash flow [42][60] - Management expressed disappointment with the discipline in the casualty reinsurance market, particularly regarding ceding commissions [108] Other Important Information - The effective tax rate for the quarter was 23.2%, exceeding the U.S. statutory rate due to taxes on foreign earnings and state income taxes [13] - The company paid ordinary and special dividends totaling $224 million in the quarter, contributing to a growth in book value per share of 6.8% for the quarter [14] Q&A Session Summary Question: Growth potential in a tougher quarter - Management revised growth expectations to a range of 8% to 12% instead of the previously stated 10% to 15% [34] Question: Underlying loss ratio dynamics - The underlying loss ratio remains primarily affected by business mix dynamics [36] Question: Impact of tariffs and labor costs - Management indicated that current loss activity is not significantly impacted, but they are monitoring future implications [42] Question: Trajectory of margins - Management believes that current rates are positioning the company well for future improvements, but cautioned against premature conclusions [44] Question: Capital management and share buybacks - Management clarified that the decision not to buy back shares was based on maintaining surplus capital for future opportunities [47] Question: Updates on the Mitsui stake - Management indicated no new information on the Mitsui stake and compliance with SEC regulations will be followed [56] Question: Medical inflation impact - Management is closely monitoring medical inflation and its potential effects on workers' compensation and stop-loss portfolios [60] Question: Competitive dynamics in private client business - Management noted that they are gaining traction in the private client space due to their expertise and value proposition [118]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported a net income of $81 million for Q1 2025, representing a 13.7% annualized return on average equity, compared to $157 million and 29.5% in Q1 2024 [19][22] - The gross premiums written increased by 17% to $843 million from $722 million year-over-year [21][22] - The combined ratio rose to 111.6% from 91.5% in the prior year, primarily due to catastrophe losses [22] - The attritional loss ratio decreased by 5.3 points to 51.9% compared to the first quarter last year [23] Business Line Data and Key Metrics Changes - The Bermuda segment's gross premiums written grew by 18% to $473 million, driven by casualty and property classes [26] - The International segment's gross premiums written increased by 15% to $370 million, primarily due to growth in property, casualty, and specialty insurance classes [25] - The Bermuda segment reported an underwriting loss of $59 million, while the International segment had an underwriting income of $1 million [25][27] Market Data and Key Metrics Changes - The catastrophe loss ratio for the quarter was 30.2%, with net losses from California wildfires estimated at $143 million [4][22] - The company noted that the property cat business remains attractively priced with improved terms and conditions [8][14] Company Strategy and Development Direction - Hamilton is focusing on selective growth in the casualty line, leveraging its AM Best rating upgrade to capture new business opportunities [7][38] - The company is maintaining a disciplined approach to underwriting, emphasizing strong relationships with key clients [9][52] - Hamilton is monitoring pricing trends closely and is prepared to adjust its underwriting appetite as needed [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic and geopolitical uncertainties, including potential recession impacts [16][17] - The company anticipates continued double-digit growth in its top line, supported by stable attritional loss ratios and a strong balance sheet [17][31] Other Important Information - Total net investment income for Q1 was $167 million, up from $148 million in the prior year [28] - The company repurchased $10 million of shares during the quarter, with $112 million remaining under its share repurchase authorization [30][60] Q&A Session Summary Question: Insights on casualty line of business and loss trend assumptions - Management noted a favorable market environment with low to mid-teens loss trends for casualty lines, emphasizing selective client partnerships [38] Question: Clarification on combined ratio movements - Management indicated that current year attritional loss picks align with expectations, influenced by the mix of business written [41] Question: Impact of business mix on expense ratio - The increase in acquisition expenses was attributed to a shift in business mix and higher profit commissions [47] Question: Confidence in casualty business quality - Management highlighted a selective approach to casualty growth, focusing on clients with strong underwriting cultures [52] Question: Clarification on Two Sigma returns - The reported return of 7.9% was a year-to-date figure through April [55]