In a compelling demonstration of resilience and strategic agility, American International Group, Inc. (NYSE: AIG) announced its first quarter 2025 financial results on May 1, 2025, showcasing marked growth and robust capital management despite a difficult catastrophe quarter. The comprehensive report details significant financial metrics and operational highlights that affirm AIG’s position as a global insurance leader.
Net premiums written (NPW) reached $4.5 billion, remaining flat year-over-year on a reported basis but rising 8% on a comparable basis, which excludes the impact of the 2024 sale of its global personal travel business.
Global Commercial NPW surged 8% year-over-year and 10% on a comparable basis, propelled by a notable 14% growth in North America Commercial and 8% in International Commercial segments.
General Insurance achieved an accident year combined ratio (AYCR) of 87.8%, the best first quarter since the financial crisis, despite elevated catastrophe losses.
Net income per diluted share stood at \(1.16, slightly up from \)1.13 in the previous year quarter, underscoring stable profitability.
AIG returned approximately \(2.5 billion to shareholders, including \)2.2 billion in share repurchases and $234 million in dividends, reflecting disciplined capital management.
The Board declared a 12.5% increase in the quarterly dividend to $0.45 per share, signaling strong confidence in future earnings.
The quarter ended March 31, 2025, with reported results reflecting a globally diversified portfolio.
North America Commercial’s NPW grew 14%, driven by new business and strong retention.
International Commercial NPW saw a 5% increase, or 8% on a comparable basis, fueled by growth in Property and Global Specialty lines.
Global Personal segment faced a 14% drop in NPW on a reported basis but showed 3% growth on a comparable basis, indicating underlying positive trends.
General Insurance’s combined ratio rose to 95.8% from 89.8% the previous year, primarily due to \(525 million in catastrophe-related losses, including \)460 million from January California wildfires.
Underwriting income for General Insurance dropped 59% to $243 million, reflecting the higher catastrophe losses.
Despite the challenging underwriting environment, the accident year combined ratio as adjusted improved slightly to 87.8% from 88.4%, demonstrating effective risk management.
Total net investment income increased by 13% year-over-year to $1.1 billion, driven by dividends and fair value changes in Corebridge Financial and higher income from fixed maturity securities.
AIG’s CEO, Peter Zaffino, emphasized the company’s “unprecedented turnaround,” highlighting the “exceptional quality” of AIG’s portfolio and disciplined underwriting strategy that allows the company to navigate macroeconomic and geopolitical uncertainties.
The December 2024 realignment of reportable segments into North America Commercial, International Commercial, and Global Personal has enabled more precise resource allocation and operational scrutiny. This structural evolution supports ongoing growth and profitability targets, including an anticipated Core Operating ROE exceeding 10% for full-year 2025.
Consistent with prior earnings discussions, AIG continues to leverage reinsurance optimization and capital discipline as vital pillars of its growth strategy. The focus on reducing expense ratios and enhancing underwriting metrics aligns with management’s ongoing mission to deliver sustained shareholder value.
AIG’s first quarter 2025 results demonstrate strong operational execution in a challenging insurance market marked by significant catastrophe losses. Its ability to produce top-line growth, maintain underwriting discipline, and return substantial capital to shareholders underscores a resilient and strategically focused company poised for continued success.
For a detailed review, the original 8-K source document can be accessed here: AIG Q1 2025 Earnings Release.
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