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• Adjusted After-Tax Income: $702 million or $1.17 per diluted share.

• Net Premiums Written: $4.5 billion, an increase of 8% year over year.

• North America Commercial Insurance Net Premiums Written: Grew 14% year over year.

• General Insurance Expense Ratio: Decreased to 30.5% from 31.8% in the prior-year quarter.

• Accident Year Combined Ratio (as adjusted): 87.8%.

• Calendar Year Combined Ratio: 95.8%, including $520 million in catastrophe losses.

• Capital Returned to Shareholders: $2.5 billion, including $2.2 billion of share repurchases and $234 million of dividends.

• Debt-to-Total Capital Ratio: 17.1%.

• Parent Liquidity: $4.9 billion.

• Share Repurchase Authorization: Increased to $7.5 billion, with approximately $7.1 billion remaining available.

• Quarterly Dividend Increase: 12.5% increase to $0.45 per share.

• Adjusted Pre-Tax Income (APTI): $979 million, a decrease of $379 million from the prior-year quarter.

• General Insurance Gross Premiums Written: $9 billion, an increase of 3% from the prior year.

• Net Investment Income: $845 million, an increase of $4 million year over year.

• Book Value Per Share: $71.38, up 10% from March 31, 2024.

• Adjusted Tangible Book Value Per Share: $67.96, down 8% from March 31, 2024.

• Warning! GuruFocus has detected 6 Warning Sign with AIG.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American International Group Inc (NYSE:AIG) reported an 8% year-over-year increase in net premiums written, driven by strong growth in global commercial insurance.

• The company achieved a significant improvement in its general insurance expense ratio, decreasing to 30.5% from 31.8% in the prior-year quarter.

• AIG's North America commercial insurance net premiums written grew 14% year over year, with Lexington Casualty experiencing a 27% increase.

• The company demonstrated strong capital management by returning $2.5 billion to shareholders in the first quarter, including $2.2 billion in share repurchases.

• AIG's strategic partnership with TATA Group in India is expected to continue its high growth trajectory, with a compound annual growth rate of 20% projected through 2030.

Negative Points

• AIG faced higher catastrophe losses in the first quarter, primarily due to the California wildfires, which impacted underwriting income.

• The company's financial lines experienced a mid-single-digit rate decrease, indicating pricing pressure in this segment.

• AIG's international commercial insurance segment saw a 130-basis-point increase in the expense ratio due to lean parent allocations.

• The company reported a calendar year combined ratio of 95.8%, which included significant catastrophe losses, highlighting ongoing volatility management challenges.

• AIG's adjusted tangible book value per share decreased by 8% from the previous year, primarily due to the impact of the Corebridge deconsolidation.