American International Group, Inc. (AIG) has kicked off 2025 with solid financial performance, showcasing strong top-line growth, disciplined underwriting, and a firm commitment to shareholder returns. Despite elevated catastrophe losses in the quarter, AIG delivered results that reflect the effectiveness of its strategic reinsurance program and operational strength across global markets.
Top-Line Growth and Commercial Strength
AIG reported net premiums written (NPW) of $4.5 billion, flat year-over-year on a reported basis but up 8% on a comparable basis, adjusted for divestitures and foreign exchange.
Global Commercial Insurance stood out with $3.2 billion in NPW, a 10% increase on a comparable basis. This growth was driven by:
- North America Commercial NPW increasing by 14%
- International Commercial rising by 8%
New business premiums in Global Commercial totaled $1.1 billion, a 12% year-over-year increase.
Underwriting and Investment Performance
The General Insurance combined ratio was 95.8%, impacted by catastrophe losses. The Accident Year Combined Ratio, as adjusted (AYCR), reached 87.8%, marking AIG’s best first-quarter underwriting result since the financial crisis.
Net investment income rose to $1.1 billion, up 13% year-over-year, benefiting from improved equity returns and fixed income yields.
Shareholder Returns and Capital Strength
AIG returned $2.5 billion to shareholders through:
- $2.2 billion in share repurchases
- $234 million in dividends
The company announced a 12.5% increase in its quarterly dividend, now set at $0.45 per share, beginning Q2 2025.
AIG ended the quarter with $4.9 billion in parent liquidity and a 17.1% debt-to-capital ratio.
Segment Highlights
North America Commercial posted 14% NPW growth, led by Lexington Insurance and strong property and specialty lines.
International Commercial grew 8% on a comparable basis, with strength in property and global specialty.
Global Personal saw a 14% NPW decline (or +3% on a comparable basis), impacted by the 2024 travel business divestiture, though personal auto showed gains.
Financial Metrics
- Net income for Q1 2025 was $698 million, or $1.16 per diluted share, compared to $1.2 billion in Q1 2024.
- Adjusted after-tax income (AATI) was $702 million, or $1.17 per diluted share, reflecting higher catastrophe losses.
- Book value per share rose to $71.38, and adjusted tangible book value held steady at $67.96.
Outlook and Strategic Position
Chairman and CEO Peter Zaffino highlighted AIG’s “exceptional momentum” heading into the rest of the year. The company reaffirmed its confidence in achieving a Core Operating ROE of 10%+ for full year 2025, supported by a resilient portfolio, disciplined risk management, and ongoing operational improvements.
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