Executive Summary

Solid underwriting and top-line growth were offset by elevated catastrophe losses; GAAP diluted EPS rose to $1.43 while AATI/EPS reached $1.30, with the General Insurance combined ratio at 92.5% and AYCR at 88.6% in Q4 2024 .
General Insurance NPW grew 6% YoY to $6.08B; net investment income increased to $1.31B, aided by Corebridge dividends and market movements; AIG returned ~$2.1B to shareholders (repurchases $1.8B, dividends $244M) .
Management estimated a ~$500M pre-reinstatement loss from the California wildfires in early 2025 and reaffirmed its “10%+” 2025 core operating ROE target, including this loss; 1/1 reinsurance renewals preserved key protections and lowered second/third event exposure .
Guidance catalysts: likely exceeding $10B 2024–2025 buyback plan ($3.4B remaining; $5.6B authorization left), expected dividend increase in 2025 (subject to Board), and corporate GOE trending to ~$90M/quarter in 2025 .

What Went Well and What Went Wrong

What Went Well
- Underwriting profitability remained strong despite higher CATs: GI AYCR of 88.6%; underwriting income of $454M; favorable PYD of $82M (1.6 pts) .
- International Commercial outperformed with a CR of 83.1%, underwriting income of $347M, and NPW +9% YoY on reported basis (7% comparable) .
- CEO on strategic progress: “We successfully executed multiple complex strategic and operational priorities… historic milestone with the deconsolidation of Corebridge” .
What Went Wrong
- Higher catastrophe charges of $325M (5.5 pts) pressured GI; North America Commercial CR rose to 98.8% on Hurricane Milton and Helene impacts, with underwriting income dropping to $25M .
- Global Personal AYCR remained near 100% (98.7%), improving but still above target profitability levels .
- AATI declined YoY to $817M (from $908M), with GI APTI down 14% YoY on higher CATs and prior divestitures; GAAP metrics continued to reflect Corebridge accounting changes .

Financial Results

Note: AIG does not emphasize consolidated “Revenue” in earnings materials. We show top-line proxies (General Insurance Net Premiums Written and Net Investment Income) alongside earnings and underwriting metrics.

Metric	Q2 2024	Q3 2024	Q4 2024
Diluted EPS (GAAP)	$(5.96)	$0.71	$1.43
Adjusted After-Tax Income (AATI) per diluted share	$1.16	$1.23	$1.30
Net Investment Income ($B)	$0.990	$0.973	$1.313
Net Investment Income, APTI basis ($B)	$0.884	$0.897	$0.872
General Insurance Net Premiums Written ($B)	$6.933	$6.380	$6.077
General Insurance Underwriting Income ($B)	$0.430	$0.437	$0.454
General Insurance Combined Ratio (%)	92.5	92.6	92.5
Accident Year Combined Ratio, as adjusted (%)	87.6	88.3	88.6
Catastrophe Losses ($M)	325	417	325
Favorable PYD ($M)	79	165	82
Consensus EPS (S&P Global)	N/A	N/A	N/A
Consensus Revenue (S&P Global)	N/A	N/A	N/A

S&P Global Wall Street consensus was unavailable at the time of analysis due to data access limits; estimate comparisons could not be shown.

Segment performance (Q4 2024)

Segment	NPW ($B)	Underwriting Income ($M)	CR (%)	AYCR (%)
North America Commercial	$2.224	$25	98.8	84.6
International Commercial	$2.089	$347	83.1	83.6
Global Personal	$1.764	$82	95.4	98.7

Key KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Capital Returned ($B)	$1.96 (repurchases $1.7; dividends $0.261)	$1.75 (repurchases $1.5; dividends $0.254)	~$2.10 (repurchases $1.8; dividends $0.244)
Parent Liquidity ($B)	$5.3	$4.2	$7.7
Debt / Total Capital (%)	18.1	17.9	17.0
Dividend/Share Declared	$0.40	$0.40	$0.40

Guidance Changes

Metric	Period	Previous Guidance	Current Update	Change
Core Operating ROE	FY2025	Target 10%+	Reaffirmed 10%+ including ~$500M CA wildfire loss	Maintained
Share Repurchases	2024–2025	$10B total; $3.4B remaining	“Likely exceed” $10B; $5.6B authorization remaining	Raised/Implied Up
Dividend Policy	2025	Annual review	“Anticipate increase in 2025,” subject to Board	Positive Bias
Corp. GOE Run-Rate	2025	N/A	Trending to ~$90M/quarter during 2025	New
Adjusted Effective Tax Rate	2025	~24.6% (2024 actual)	Expect similar to 2024	Maintained
Share Count	Target	N/A	550–600M target range	New/Clarified
Reinsurance Program	2025	Prior structure	Maintained $500M core NA retention; expanded aggregate and HNW coverage; reduced 2nd/3rd event exposure	Optimized Structure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology initiatives	Not highlighted as an operating initiative in Q2/Q3 releases; AI referenced in risk factors	Launched “AIG Underwriter Assist” (GenAI/LLM) with partners Palantir, Anthropic, AWS to accelerate data ingestion and underwriting workflow	Uptrend; operational deployment
Reinsurance strategy	Not a focal point in Q2/Q3 releases	1/1 renewals preserved $500M NA retention, expanded aggregate; launched Lloyd’s Syndicate 2478 with Blackstone; lower 2nd/3rd event exposure	Strengthening
Catastrophe environment	CAT losses persisted: Q2 $325M (5.7 pts), Q3 $417M (6.9 pts)	Q4 CATs $325M (5.5 pts); CA wildfires est. ~$500M in 1Q25	Elevated but managed
Product/portfolio performance	Lexington momentum; record Commercial new business; Global Personal improving	Global Commercial new business $1.1B; retention 86%; NA Comm. hit by CATs; Global Personal improving but AYCR 98.7%	Mixed: growth strong; personal lines improving
Regulatory/macro	Not emphasized in Q2/Q3 press releases	California wildfire/regulatory complexity; need for modeling reset in peak zones (Q&A)	Heightened focus
Capital management	~$5B H1 actions; Q3 capital return $1.75B	~$2.1B returned in Q4; likely exceed $10B 2024–2025 buyback; dividend increase anticipated	Accelerating

Management Commentary

Strategy and 2024 achievements: “We… delivered outstanding financial results and created exceptional value… achieved a historic milestone with the deconsolidation of Corebridge Financial” (Peter Zaffino, CEO) .
Wildfire impact: “We estimate the net loss for AIG to be approximately $500 million, before reinstatement premiums” .
2025 outlook: “We are well on track to deliver 10% plus core operating return on equity for full year 2025” .
Reinsurance optimization: Retained $500M NA retention, expanded aggregate and HNW cover; lowered 2nd/3rd event exposure after 1/1 renewals .
AI enablement: “Delivered AIG’s first generative AI… Underwriter Assist… with partners including Palantir, Anthropic and AWS” .

Q&A Highlights

ROE guidance: Management reaffirmed “10%+” 2025 core operating ROE including the ~$500M CA wildfire loss; emphasized reinsurance structure reduces 2nd/3rd event exposure .
Growth and price adequacy: Leadership cited strong retention/new business in Commercial, targeting lines with attractive risk-adjusted returns; Lexington momentum remains a core driver .
AI in underwriting: GenAI focus is to speed data ingestion and underwriter decisioning; expected to support top-line growth and underwriting productivity .
High Net Worth (PCS) profitability: Continued improvement expected via pricing, quota-share (30% with six leading partners), and ceding commission benefits as PCS scales .
Capital returns and balance sheet: Likely to exceed $10B buyback plan across 2024–2025; $5.6B authorization remains; dividend increase anticipated in 2025 (subject to Board) .
Expenses: Corporate GOE run-rate migrating to ~$90M per quarter over 2025 as costs shift into business units; expense ratio expected to improve through 2025 .

Estimates Context

S&P Global Wall Street consensus EPS and revenue for Q4 2024 were unavailable at the time of analysis due to data access limits; as a result, explicit beat/miss versus consensus cannot be shown. Management did not provide explicit “beat/miss” language in the press release .

Key Takeaways for Investors

Underwriting quality intact: AYCR of 88.6% and stable CR despite higher CATs underscores improved risk selection and expense discipline, particularly in International Commercial .
Near-term headwinds manageable: CAT charges remain elevated; Q4 NA Commercial results were CAT-driven, with reinsurance restructured to reduce tail risk on subsequent events .
Personal lines inflecting: Global Personal CR improved to 95.4% with AYCR 98.7%; PCS scaling, ceding commissions and quota shares should aid further ratio improvement in 2025 .
Capital returns likely to surprise positively: Management expects to exceed the $10B 2024–2025 buyback plan and anticipates a 2025 dividend increase; strong parent liquidity and reduced leverage support capital flexibility .
2025 narrative: Reaffirmed 10%+ core operating ROE including the CA wildfire points to confidence in earnings durability (underwriting, NII yield tailwinds, expense actions) .
Structural catalysts: Syndicate 2478 with Blackstone and improved 1/1 treaty terms add resilience to volatility while enabling growth in target lines .
Watch items: CAT seasonality, casualty loss-cost trends vs rates, and regulatory developments (e.g., California) remain key to trajectory and valuation .

Additional Q4 Materials and Prior-Quarter Context

Q4 2024 press release (earnings) –; 8-K and exhibit –.
Q4 2024 earnings call transcript –.
Other relevant press releases: Investor Day announcement (Mar 31, 2025) ; Board addition (Juan Perez, Salesforce CIO) reinforcing AI/data strategy focus .
Q3 2024 8-K highlights: AATI/EPS $1.23; CR 92.6%; CATs $417M; capital returned $1.75B .
Q2 2024 8-K highlights: AATI/EPS $1.16; CR 92.5%; CATs $325M; deconsolidation of Corebridge .

Non-GAAP note: AATI and AYCR are non-GAAP measures; reconciliations and definitions provided in AIG’s press release and 8-K materials – –.

AMERICAN INTERNATIONAL GROUP, INC. (AIG)·Q4 2024 Earnings Summary