AIG(AIG) - 2025 Q1 - Quarterly Results

Financial Performance - AIG reported net premiums written (NPW) of $4.5 billion for Q1 2025, flat year-over-year on a reported basis but up 8% on a comparable basis[6]. - Net income attributable to AIG common shareholders was $698 million, or $1.16 per diluted share, down from $1.2 billion, or $1.74 per diluted share, in the prior year quarter[10]. - Total net investment income for Q1 2025 was $1.1 billion, a 13% increase from $979 million in the prior year quarter[12]. - AIG reported a pre-tax income of $1,058 million for the three months ended March 31, 2024, with a net income attributable to AIG common shareholders of $1,194 million[48]. - The adjusted pre-tax income attributable to AIG common shareholders was $1,153 million, while the adjusted after-tax income was $862 million for the same period[48]. - Net income attributable to AIG common shareholders decreased by 32.6% to $1.18 in 2025 from $1.75 in 2024[54]. Shareholder Returns - AIG returned approximately $2.5 billion to shareholders in Q1 2025, including $2.2 billion in share repurchases and $234 million in dividends[13]. - The Board of Directors approved a 12.5% increase in the quarterly dividend to $0.45 per share, marking the third consecutive year of double-digit percentage increases[5]. - Basic earnings per share from continuing operations increased by 3.5% to $1.18 for the three months ended March 31, 2025, compared to $1.14 in 2024[54]. Insurance Operations - Global Commercial NPW increased to $3.2 billion, reflecting a 10% growth year-over-year, with North America Commercial growing 14% and International Commercial growing 8%[4]. - The General Insurance combined ratio was 95.8%, an increase from 89.8% in the prior year quarter, primarily due to higher catastrophe charges[17]. - The accident year combined ratio, as adjusted, was 87.8%, the best first quarter results since the financial crisis[3]. - The combined ratio for the first quarter was 107.9%, an increase from 98.3% in the prior year quarter, primarily due to the impact of January California wildfires[21]. - Net premiums written for the first quarter of 2025 were $1.3 billion, a decline of 14% from the prior year quarter, but a growth of 3% on a comparable basis driven by Personal Auto growth[21]. - The accident year combined ratio for North America Commercial was adjusted to 84.3 in 2025 from 85.9 in 2024[61]. Investment Performance - AIG's net investment income from General Insurance was $814 million, while the net investment income from Other Operations was a loss of $133 million[52]. - Net investment income and other for the first quarter increased by $37 million to $73 million, attributed to dividend income from Corebridge[22][25]. - Net investment income on a consolidated basis increased to $1,105 million for the three months ended March 31, 2025, from $979 million in 2024[54]. Financial Position - The debt to total capital ratio was 17.1% as of March 31, 2025, indicating a strong balance sheet position[14]. - Total financial and hybrid debt stood at $8,558 million as of March 31, 2025, with total capital at $50,017 million[58]. - Total adjusted common shareholders' equity rose to $53,249 million as of March 31, 2024, up from $44,726 million at the end of 2024[56]. - Book value per share increased by 10.4% to $64.66 as of March 31, 2024, compared to $70.16 at the end of 2024[56]. - AIG's core operating book value per share was $61.72 as of March 31, 2025, reflecting a slight decrease from $61.75 in 2024[56]. Operational Efficiency - Corporate and other general operating expenses improved by $73 million from the prior year quarter, achieving a run-rate target of $85 million in the first quarter of 2025[25]. - The company is on track to achieve a target operating structure of $350 million in annual expenses for 2025[25]. - Interest expense decreased by $24 million from the prior year quarter, primarily due to debt reduction[25]. Forward-Looking Statements - AIG expects to achieve a Core Operating Return on Equity (ROE) of 10%+ for the full year 2025, supported by significant strategic and financial flexibility[8]. - Forward-looking statements indicate potential risks including economic conditions, catastrophic events, and regulatory changes that may affect future results[26][27]. Miscellaneous - AIG will host a conference call on May 2, 2025, to review these results, accessible via a live webcast[23]. - The adjusted return on equity is used to show the rate of return on common shareholders' equity excluding Investments AOCI, providing insight into underlying profitability[38]. - The company experienced a net loss reserve discount charge of $76 million in the reported period[52]. - Integration and transaction costs associated with acquiring or divesting businesses amounted to $3 million in the first quarter of 2024[52]. - AIG recorded a net loss from discontinued operations of $803 million, reflecting the impact of divestitures[48]. - Changes in the fair values of equity securities and AIG's investment in Corebridge resulted in a loss of $88 million[48]. - The company reported net realized losses on Fortitude Re funds withheld assets totaling $55 million[48].