American International Group (AIG) Investor Day 2025 summary

Strategic vision and financial guidance

• Targeting over 20% compound annual EPS growth and core operating ROE of 10–13% for 2025–2027, with a general insurance expense ratio below 30% and double-digit dividend growth per share for 2025–2026.

• Board supports dividend increases and significant share repurchases, with a new $7.5 billion authorization and $5–6 billion planned for 2025.

• Financial flexibility enhanced by $18 billion debt reduction since 2017 and a 17% debt-to-capital ratio.

• Ordinary dividends from subsidiaries expected to reach $3 billion annually, supporting capital returns and organic/inorganic growth.

• Enhanced capital management with $7.7B in parent liquidity and robust insurance subsidiary capitalization.

Business transformation and operational excellence

• Underwent a complete leadership overhaul since 2017, with 100% new executive team and 80% new top 100 leaders.

• Achieved a 28-point improvement in combined ratio (from 121% in 2017 to 93% in 2024), now in the upper quartile of peers.

• Divested non-core businesses, cut $1.1B in costs, and reduced real estate footprint by 40%, enabling reinvestment in technology and core operations.

• Realized $1 billion in run-rate savings, with $500 million targeted from AIG Next, and eliminated $250 million in stranded costs.

• Migrated 80% of workloads to the cloud, eliminated 1,200 legacy applications, and modernized data infrastructure.

Reinsurance and risk management

• Overhauled reinsurance strategy, reducing net retentions by up to 70% and increasing predictability of results.

• Catastrophe loss ratio reduced from 16% in 2017 to a consistent 4–5% in recent years.

• Severe losses (>$10M) decreased by 70% over five years, now at 1% or less of loss ratio.

• Launched an exclusive SPV with Blackstone at Lloyd’s, providing long-term reinsurance capacity and fee income.

• Aggregate covers and portfolio optimization enable efficient capital allocation and risk transfer.