American International Group (AIG) Reports Q1 Earnings: What Key Metrics Have to Say

Core Insights - American International Group (AIG) reported a revenue of $6.62 billion for Q1 2025, marking a 47% decline year-over-year and falling short of the Zacks Consensus Estimate of$ 6.79 billion, resulting in a surprise of -2.59% [1] - The earnings per share (EPS) for the same quarter was $1.17, down from$ 1.77 a year ago, but exceeded the consensus estimate of $1.05 by 11.43% [1] Financial Performance Metrics - AIG's shares have returned -7.1% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3] - General Insurance combined ratio was reported at 95.8%, better than the average estimate of 96.7% from four analysts [4] - The expense ratio for General Insurance was 30.5%, compared to the estimated 31.1% [4] - The loss ratio for General Insurance was 65.3%, slightly better than the 65.6% average estimate [4] - North America Commercial loss ratio was reported at 71.8%, compared to the estimated 71.2% [4] - North America Commercial combined ratio was 93.9%, better than the estimated 94.9% [4] - Net premiums earned in General Insurance were$ 5.77 billion, below the average estimate of $5.86 billion, reflecting a -0.3% year-over-year change [4] - Net investment income for General Insurance was$ 736 million, lower than the average estimate of $809.75 million, representing a -3.4% year-over-year change [4] - International Commercial net premiums earned were$ 2.05 billion, below the estimated $2.10 billion [4] - Global Personal net premiums earned were$ 1.59 billion, compared to the estimated $1.74 billion [4] - Other Operations reported net investment income and other at$ 110 million, exceeding the average estimate of $96.73 million, showing a significant year-over-year increase of 358.3% [4] - North America Commercial net premiums earned were$ 2.12 billion, slightly above the average estimate of $2.06 billion [4] - Total net investment income was reported at$ 1.11 billion, surpassing the average estimate of $933.40 million, but reflecting a substantial year-over-year decline of 71.7% [4]