- Strong Premium Growth General Insurance net premiums written grew 18% YoY ($6.5B portfolio), driven by 36% North America Commercial and 12% International Commercial growth.
- Improved Combined Ratios Accident year combined ratio as adjusted improved 120 bps to 86.6%, and calendar year ratio improved 850 bps to 87.3% YoY.
- Capital Returns $760M returned to shareholders (51.9% via $519M share repurchases and 24.1% via $241M dividends), with 11% dividend increase to $0.50/share.
- AI & Digital Strategy AIG launched "Underwriting by AIG Assist" for AI-driven underwriting, aiming to enhance decision-making with multi-agent collaboration and efficiency gains.
- 2027 Financial Targets AIG aims for >20% operating EPS CAGR, 10–13% core ROE, and General Insurance expense ratio <30%, alongside a 10% 2026 dividend increase.
Q1 Revenue & Margin
Net premiums earned rose 5% YoY, driven by a 36% surge in North America Commercial and 12% in International Commercial. Adjusted pretax income climbed 65% to $1.5 billion, reflecting lower catastrophe losses and disciplined underwriting, while the expense ratio stayed below 30%, highlighting operational leverage.
Capital Returns & Dividend
AIG returned $760 million to shareholders—$519 million in share repurchases and $241 million in dividends—while announcing an 11% quarterly dividend hike to $0.50. The 17.7% debt‑to‑capital ratio and a 1.3 net debt/EBITDA suggest ample liquidity to sustain these returns.
AI & Digital Initiatives
Underwriter support is deepening with “Underwriting by AIG Assist” and AI agents reviewing submissions, promising efficiency gains. Zaffino highlighted the integration of Claude 2.0, foreseeing cost savings in underwriting and claims, and positioning AIG for long‑term AI orchestration.
Property & Casualty Outlook
International Property remains profitable with a low‑70s combined ratio; U.S. Retail Property and Excess & Surplus Lines perform well, though Lexington’s layered business faces pricing pressure. Casualty faces rate‑pressure but retains solid returns, with expectations of moderate loss‑ratio impact in the back half of the year.
Leadership Transition & Strategy
New CEO Eric Andersen emphasized disciplined capital management and underwriting excellence. He reiterated goals of 20% operating‑EPS CAGR to 2027, 10‑13% core operating ROE, and a 30% expense ratio target, reinforcing confidence in AIG’s strategic trajectory.
Guidance & Outlook
Looking ahead, AIG projects continued premium growth, improved combined ratios, and a 10% dividend increase in 2026. With a P/E of 17.68 and an EV/EBITDA of 8.57, the market appears to price in steady underwriting gains and AI‑driven efficiencies, positioning AIG for robust future performance.