AIG's first-quarter 2025 results underscore a transitional period marked by the deconsolidation of Corebridge Financial and strategic focus on core operations, underwriting discipline, and capital management. Net income attributable to common shareholders dropped 42% year-over-year to $698 million, reflecting the absence of discontinued operations income, which had contributed $803 million in Q1 2024. Similarly, adjusted pre-tax income declined 21% to $909 million, and adjusted after-tax income fell 19% to $702 million. Earnings per diluted share came in at $1.17, slightly lower than $1.25 a year ago.

Despite earnings pressures, AIG’s book value per share rose to $71.38 and adjusted book value per share increased to $74.45, benefiting from share count reduction and favorable market dynamics. The company’s long-term debt was trimmed to $8.6 billion, reinforcing its commitment to liability management, while total net investment income grew 13% year-over-year to $1.1 billion, driven by stronger yields, structured securities, and dividend income from Corebridge.

In segment performance, Global Personal experienced a downturn, with net premiums written falling 14% to $1.33 billion, largely due to the sale of its personal travel insurance unit. The segment posted a sharp underwriting loss of $126 million, compared to $30 million in income last year, primarily due to $177 million in higher catastrophe losses. As a result, the combined ratio deteriorated to 107.9%, though the accident year combined ratio, as adjusted, improved to 95.6%, signaling some underlying progress.

Meanwhile, Other Operations delivered a notable recovery, cutting its adjusted pre-tax loss to $70 million, compared to $205 million a year ago. This improvement stemmed from increased investment income, including $31 million in Corebridge dividends, along with lower corporate and interest expenses.

Looking ahead, management remains confident in achieving a 10%+ core operating ROE for full-year 2025, despite a $500 million pre-tax hit from January’s California wildfires. AIG anticipates organic growth led by Global Commercial and ongoing benefits from reinsurance program enhancements. In Global Personal, the company aims to strengthen performance through improved expense ratios, strategic partnerships, and operational efficiencies from the AIG Next program. With most non-core divestitures completed, AIG signals a disciplined approach to M&A and a focus on capital returns, targeting 550–600 million shares outstanding and a rising dividend aligned with that reduction.

Overall, while the quarter reflects headwinds from strategic shifts and natural catastrophes, AIG’s disciplined execution, improving investment income, and focus on operational efficiency set a clear path toward its 2025 goals.