From Nasdaq: 2025-05-02 13:20:00

American International Group, Inc. (AIG) reported first-quarter 2025 adjusted earnings per share of $1.17, beating estimates by 11.4%. However, earnings declined from the previous year. Adjusted operating revenues were $6.6 billion, lower than expected. Premiums decreased to $5.8 billion, while total net investment income rose to $1.1 billion.

AIG’s first-quarter performance was supported by new business production and robust retention, but it was impacted by lower premiums and high catastrophe charges from California wildfires. The company’s adjusted return on equity was 6.4%, in line with the previous year.

In terms of segmental performances, AIG saw growth in its North America Commercial and International Commercial segments, while Global Personal segment faced challenges. Total benefits, losses, and expenses increased by 2.1% year over year, with underwriting income declining in some segments due to higher catastrophe charges.

AIG’s financial position as of March 31, 2025, showed a cash balance of $1.4 billion with total assets of $161.9 billion. Long-term debt decreased to $8.6 billion, while total equity fell to $41.5 billion. Adjusted book value per share declined by 6.2% year over year.

The company rewarded shareholders with share repurchases of $2.2 billion and dividends of $234 million. A cash dividend of 45 cents per share for the second quarter was announced, marking a 12.5% increase. AIG currently holds a Zacks Rank #3 (Hold).

In the broader finance space, other strong stocks include Root Inc. (ROOT), Kingstone Companies Inc. (KINS), and Heritage Insurance Holdings Inc. (HRTG), each with a Zacks Rank #1 (Strong Buy) and positive growth outlooks. Root, Kingstone Companies, and Heritage Insurance have seen positive revisions in earnings estimates and strong revenue growth expectations.



Read more at Nasdaq: AIG Q1 Earnings Top on New Business Despite High Catastrophe Loss