AIG Reports Q1 2025 Financial Results with $698 Million Net Income

American International Group, Inc. (AIG) reported its financial results for the first quarter of 2025, revealing a net income attributable to common shareholders of $698 million, a decrease from $1.2 billion in the same period last year. The decline was primarily driven by a significant drop in income from discontinued operations, which fell by $803 million due to the deconsolidation of Corebridge. Additionally, underwriting income was adversely affected by higher catastrophe losses amounting to $419 million, although this was partially offset by favorable prior year reserve development of $33 million.

Total revenues for the quarter reached $6.8 billion, slightly up from $6.76 billion in the prior year, with premiums totaling $5.77 billion, down from $5.87 billion. Net investment income increased to $1.1 billion, compared to $979 million in the previous year, largely due to higher dividends from Corebridge and improved performance in available-for-sale fixed maturity securities. However, net realized losses rose to $103 million from $87 million, reflecting challenges in the investment environment.

AIG's total assets as of March 31, 2025, stood at $161.86 billion, a modest increase from $161.32 billion at the end of 2024. The company’s total liabilities also rose to $120.41 billion from $118.77 billion, with a notable increase in unearned premiums, which reached $18.09 billion, up from $17.23 billion. The company’s shareholders' equity decreased to $41.43 billion from $42.52 billion, influenced by share repurchases and dividends paid during the quarter.

In terms of operational metrics, AIG's North America Commercial segment reported a slight increase in net premiums written, while the International Commercial segment saw growth driven by strong retention and new business production. However, the Global Personal segment experienced a decline in net premiums written due to the sale of its global individual personal travel insurance business. The company continues to focus on underwriting excellence and strategic growth, with plans to optimize its reinsurance arrangements to manage exposure to catastrophic events.

Looking ahead, AIG remains cautious about market conditions, particularly regarding interest rates and inflation, which could impact investment income and underwriting results. The company is committed to maintaining its capital strength and liquidity, with a focus on returning value to shareholders through dividends and share repurchases, as evidenced by the recent authorization of a $7.5 billion share repurchase program.