Chubb (NYSE:CB) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Speaker1Oh, now let's turn the conference over to Susan Spivak, Senior Vice President, Investor Relations. You may begin.Speaker2Thank you, and welcome to our December 31st, 2025, fourth quarter and year-end earnings conference call. Our report today will contain forward-looking statements, including statements relating to company performance, pricing and business mix, growth opportunities, and economic and market conditions, which are subj ...

Summary of American International Group (AIG) 2025 Conference Call Company Overview - **Company**: American International Group (AIG) - **Event**: 2025 Conference Call - **Date**: September 03, 2025 Key Points Financial Performance - Adjusted after-tax income per share increased by **56% year-over-year** driven by a **46% increase in underwriting income** [5] - Core operating Return on Equity (ROE) rose to **11.7%** for the quarter, with a calendar year combined ratio of **89.3%** [5] - Year-to-date, AIG returned **$4.5 billion** of capital to shareholders and achieved a third consecutive year of double-digit dividend growth [6] - S&P and Moody's upgraded the financial strength of AIG's insurance subsidiaries, marking the first upgrade from Moody's since **1990** [6] Strategic Initiatives - AIG is focused on enhancing its **underwriting culture** and operational excellence through digitization and the use of **GenAI** [3][4] - The company aims to achieve ambitious long-term financial targets and is on track to meet a **20% EPS growth** objective over three years [5] - AIG has retired **$830 million** of debt, resulting in a debt-to-total capital ratio of **17.9%**, one of the best in the industry [6] Market Conditions - The property insurance sector faced headwinds in **2025**, while casualty lines, particularly excess casualty, showed strength [8] - Financial lines have stabilized after a period of rate reductions, with AIG emphasizing the importance of transparency in property pricing and reinsurance costs [8] Technology and Innovation - AIG is embedding **GenAI** into core business processes to support underwriting and claims, with promising early results from pilot programs [9][10] - The company plans to roll out GenAI capabilities across various business lines, including its **E&S business** and **Lexington** [11] - Major tech companies are investing heavily in AI, with a combined **$400 billion** in CapEx announced for AI in 2025, which AIG expects to leverage for growth [12] Leadership and Talent - John Neal has been appointed as President of AIG, bringing extensive global experience and a strong track record in underwriting strategy [15][17] - AIG is focused on attracting and retaining talent, with a strong emphasis on training and developing underwriters to adapt to changing market conditions [73][75] Mergers and Acquisitions - AIG is open to M&A opportunities that align with its strategic goals, emphasizing the importance of cultural fit and financial accretion [63][64] - The company aims to enhance its capabilities in areas such as **A&H** and expand into new geographies through potential acquisitions [63] Underwriting and Claims Management - AIG is managing its underwriting portfolio with a focus on operational efficiency and reducing cycle times for submissions [24][28] - The company is cautious about the use of delegated underwriting authority, preferring to maintain control over underwriting outcomes [78] Future Outlook - AIG anticipates that larger companies will benefit from scale and investment in technology, positioning them for faster growth in the insurance market [56][57] - The company is prepared to adapt its strategies based on market conditions, particularly in property and casualty lines, to capitalize on growth opportunities [52][53] Risk Management - AIG maintains a conservative approach to reserves, focusing on strengthening its balance sheet and ensuring adequate pricing for long-tail claims [84][86] - The company is exploring the potential for shifting longer-tail casualty policies to a claims-made basis, although it recognizes challenges in client acceptance [88][89] Conclusion AIG is demonstrating strong financial performance and strategic repositioning in 2025, with a focus on technology integration, talent development, and operational efficiency. The company is well-positioned to navigate market challenges and capitalize on growth opportunities in the insurance sector.

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]