American International Group (AIG) KBW Insurance Conference 2025 summary

Strategic priorities and operational progress

• 2025 marked a pivotal year, with a focus on leaving the past behind and achieving objectives set at the March Investor Day.

• Emphasis on underwriting culture, operational excellence, digitized workflows, and disciplined capital management has increased financial and strategic flexibility.

• GenAI integration is a key focus, with pilots live and broader rollouts planned for E&S and commercial business by 2026.

• S&P and Moody's upgraded insurance subsidiaries' financial strength, the first Moody's upgrade since 1990.

• $4.5 billion in capital returned to shareholders and a third consecutive year of double-digit dividend growth.

Financial performance and targets

• Adjusted after-tax income per share rose 56% year-over-year in Q2, driven by a 46% increase in underwriting income.

• Core operating ROE reached 11.7%, and the calendar year combined ratio was 89.3% for Q2.

• EPS growth for the first half of the year is tracking above the three-year 20% objective.

• Debt-to-total capital ratio improved to 17.9% after retiring $830 million in debt.

Technology and AI advancements

• GenAI is being embedded in underwriting and claims, with early results exceeding expectations.

• Lexington's E&S business will see GenAI rollout within the year, with commercial lines to follow in 2026.

• AI is expected to further automate underwriting decisions within five years, especially for binary or data-driven tasks.

• Partnerships with leading tech firms are accelerating AI capabilities and data extraction.