American International Group (AIG) 2024 KBW Insurance Conference summary

Strategic repositioning and operational transformation

• Completed major portfolio repositioning, revamped underwriting standards, and reset risk appetite over several years.

• Achieved financial deconsolidation of Corebridge and executed significant divestitures, including Validus Re, Crop Risk Services, and the global personal travel business.

• Launched AIG Next to drive $500 million in expense reductions and unify operations as a cohesive General Insurance organization.

• Pulled forward combined ratio improvement target to full year 2025, aiming for same or better than 2023.

Capital management and financial strength

• Strengthened balance sheet, reduced debt to total capital leverage ratio from nearly 30% to 18%.

• On track with $10 billion share repurchase plan for 2024-2025, targeting 550-600 million shares.

• Increased shareholder dividend by over 10% for two consecutive years, with plans for sustainable repurchase levels post-2025.

• Maintains strong parent liquidity of $5.3 billion and prioritizes prudent risk selection.

Underwriting discipline and reinsurance strategy

• Catastrophe ratio reduced from 16% in 2017 to 3.8% in 1H 2024, with $1.1 billion as a proxy for 2024 cat losses.

• Comprehensive reinsurance program supports all lines, with focus on volatility reduction and earnings protection.

• Property portfolio combined ratio improved from over 130 to low 80s, with disciplined reinsurance purchasing.