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Mar 31

AIG Q1 2025 Earnings Report

AIG delivered strong underwriting results despite high catastrophe losses in Q1 2025.

Key Takeaways

AIG posted a solid Q1 2025 with strong underwriting performance and capital returns, despite elevated catastrophe-related losses.

Net Income was $698 million, down from $1.2 billion due to prior year Corebridge income.

Adjusted EPS came in at $1.17, with book value per share rising to $71.38.

Returned $2.5 billion to shareholders via repurchases and dividends.

Declared a 12.5% increase in quarterly dividend, now $0.45 per share.

Total Revenue
$6.78B
Previous year: $3.9B
+73.7%
EPS
$1.17
Previous year: $1.77
-33.9%
Underwriting Income
$243M
Previous year: $596M
-59.2%
Combined Ratio
95.8%
Previous year: 89.8%
+6.7%
AY Combined Ratio
87.8%
Previous year: 88.4%
-0.7%
Free Cash Flow
-$56M

AIG

AIG

AIG Revenue by Segment

AIG Revenue by Geographic Location

Forward Guidance

AIG remains confident in achieving 10%+ Core Operating ROE for FY 2025, supported by underwriting strength and capital discipline.

Positive Outlook

  • Strong momentum in North America Commercial with 14% growth.
  • Improved prior year development positively impacting underwriting.
  • Expense ratio improvement supporting margins.
  • Dividend raised for third consecutive year.
  • Capital position remains strong with $4.9B in parent liquidity.

Challenges Ahead

  • Catastrophe losses significantly impacted Q1 underwriting income.
  • Net income declined year-over-year due to Corebridge deconsolidation.
  • Combined ratio rose above 95% from prior year.
  • Global Personal segment reported underwriting loss.
  • Macroeconomic and geopolitical uncertainty continues to pose risks.