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Investing.com -- American International Group Inc (NYSE:AIG) reported better-than-expected first quarter earnings on Wednesday, as strong commercial insurance growth helped offset losses from California wildfires. The insurer’s stock edged up 0.2% in after-hours trading following the results.
AIG posted adjusted earnings per share of $1.17 for Q1 2025, surpassing analyst estimates of $0.99. However, net income fell to $698 million, or $1.16 per share, from $1.19 billion, or $1.74 per share, a year earlier.
The company’s net premiums written were flat YoY at $4.5 billion, but rose 8% on a comparable basis. Global Commercial net premiums written grew 10% to $3.2 billion, driven by 14% growth in North America Commercial and 8% in International Commercial.
AIG reported a combined ratio of 95.8% for its General Insurance segment, deteriorating from 89.8% in Q1 2024. This was largely due to $525 million in catastrophe losses, including $460 million from January’s California wildfires.
"Despite a challenging catastrophe quarter that produced elevated losses for the industry, AIG delivered very strong results," said CEO Peter Zaffino. "This outcome underscores the effectiveness of our technical underwriting expertise and strategic use of reinsurance."
The company returned approximately $2.5 billion to shareholders in Q1, including $2.2 billion in share repurchases and $234 million in dividends. AIG’s board also approved a 12.5% increase in the quarterly dividend to $0.45 per share.