American International Group (AIG) reported a pronounced increase in adjusted profit for the first quarter as underwriting results improved and catastrophe-related losses dropped significantly from a year earlier.
Quarterly performance
AIG said general insurance underwriting income more than tripled to $774 million in the quarter ended March 31. Catastrophe-related charges fell 66% to $180 million, a sharp decline from the elevated claims the industry recorded a year earlier amid losses tied to the Los Angeles wildfires.
The company recorded adjusted after-tax income attributable to common shareholders of $1.15 billion, or $2.11 per share, in the three months ended March 31. That compares with $702 million, or $1.17 per share, in the same period a year earlier.
Investment and other income drivers
On an adjusted pre-tax basis, AIG said net investment income rose 8% to $915 million. The firm also said it is increasing its quarterly dividend to $0.50 per share.
Industry context and demand
Insurers broadly have seen lower wildfire activity in key states such as California compared with the prior year, a trend that has helped ease catastrophe-related charges. Peer Travelers also posted first-quarter results that beat analysts' expectations earlier in the month, with similar relief from reduced wildfire activity.
At the same time, demand for insurance coverage remains solid as households and businesses continue to prioritize protection against elevated economic uncertainty and geopolitical risks, including the conflict in the Middle East, the company said.
Outlook and leadership note
Peter Zaffino, who will step down in mid-2026 after nearly five years leading the company, said in a statement: "Looking ahead, we are confident in our ability to navigate an increasingly complex global risk landscape while continuing to deliver disciplined, profitable growth..." He added that AIG was on track to meet or exceed its financial objectives for 2026.
While the decline in catastrophe losses weighed in favorably on results this quarter, the company highlighted that U.S. wildfires remain a significant risk for the remainder of the year, given that these events typically intensify during the summer months.
Key figures
- General insurance underwriting income: $774 million (first quarter)
- Catastrophe-related charges: $180 million (down 66%)
- Adjusted after-tax income attributable to common shareholders: $1.15 billion, or $2.11 per share
- Prior-year comparable: $702 million, or $1.17 per share
- Adjusted pre-tax net investment income: $915 million (up 8%)
- Quarterly dividend: increased to $0.50 per share