American International Group (AIG) has reported a 71% year-on-year decline in net income attributable to common shareholders, totalling $698m in the first quarter of 2025 (Q1 2025), down from $1.1bn a year ago.
Earnings per diluted share dropped to $1.16 in Q1 2025 from $1.74 the previous year.
Go deeper with GlobalData
The slump was due to the impact of Corebridge Financial deconsolidation.
Return on equity (ROE) and core operating ROE declined to 6.7% and 7.7%, respectively, for the quarter.
The company’s General Insurance segment net premiums written remained stable at $4.5bn.
However, underwriting income declined by 59% to $243m, primarily due to increased catastrophe-related losses.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe General Insurance international division saw a 5% rise in net premiums written, reaching $2bn, driven by the Property and Global Specialty lines.
In North America, the commercial segment’s net premiums written increased by 14% to $1.2bn, with contributions from Lexington Insurance, Glatfelter and Retail Property.
During Q1 2025, AIG returned around $2.5bn to shareholders through $2.2bn in buybacks and $234m in dividends.
The company declared a quarterly cash dividend of $0.45 per share on 1 May 2025, payable on 27 June.
AIG chairman and CEO Peter Zaffino said: “We are off to an excellent start in 2025. Despite a challenging catastrophe quarter that produced elevated losses for the industry, AIG delivered very strong results. This outcome underscores the effectiveness of our technical underwriting expertise and strategic use of reinsurance, positioning us within our expectations for the remainder of the year. In addition, we reported AIG’s best first quarter accident year combined ratio, as adjusted, since the financial crisis, reflecting the exceptional quality of our underlying portfolio.”
He added: “While the broader macroeconomic and geopolitical environment remains uncertain, AIG is navigating these challenges from a position of strength given our global diversified portfolio, disciplined underwriting and resilient balance sheet. Our dedicated colleagues around the world remain committed to delivering on our objectives with the highest quality.”
For the full year 2024, AIG posted a net loss of $1.43bn attributable to its common shareholders, compared with net income of $3.61bn the previous year.
