American International Group (AIG) Q1 2025 earnings summary

Executive summary

• Delivered strong Q1 2025 results with 8% growth in net premiums written, led by 14% growth in North America Commercial and 8% in International Commercial, despite challenging macroeconomic and geopolitical conditions and significant catastrophe losses from California wildfires.

• Net income attributable to common shareholders was $698 million, down 42% year-over-year, primarily due to the deconsolidation of Corebridge and higher catastrophe losses, partially offset by favorable reserve development and increased investment income.

• Returned $2.5 billion to shareholders through $2.2 billion in share repurchases and $234 million in dividends; quarterly dividend increased by 12.5% to $0.45 per share, with a new $7.5 billion repurchase authorization.

• Investor Day highlighted transformation, digitalization, and GenAI adoption, with strong endorsements from key technology partners.

• Maintained disciplined capital management, leaner corporate structure, and robust balance sheet.

Financial highlights

• Adjusted after-tax income was $702 million ($1.17 per diluted share), down from $862 million year-over-year; net income per diluted share was $1.16.

• Net premiums written grew 8% year-over-year to $4.5 billion, with General Insurance gross premiums written up 3% to $9 billion; combined ratio was 95.8%, up from 89.8% prior year, reflecting higher catastrophe losses.

• Catastrophe losses totaled $525 million, mainly from California wildfires.

• Net investment income rose 13% to $1.1 billion, driven by Corebridge equity, higher fixed maturity income, and lower expenses.

• Book value per share was $71.38, up 10% from prior year; adjusted tangible book value per share was $67.96.

Outlook and guidance

• On track to achieve 10%+ core operating ROE in 2025; first quarter core operating ROE was 7.7%, impacted by catastrophe losses.

• Targeting 20%+ EPS CAGR over the next three years and expects to repurchase $5–6 billion in shares in 2025, with $7.1 billion remaining under authorization.

• Dividend per share increased 12.5% to $0.45, with intent to grow by 10%+ in 2025 and 2026.

• Management expects continued focus on underwriting discipline, expense reduction, and capital management, with an emphasis on profitable growth and risk-adjusted returns.

• The company believes it has sufficient liquidity and capital resources to meet future obligations and support business growth.