American International Group Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Zarinsky - BMO - Analyst : Hey, morning. Thank you. I have a maybe a high level question on the transformation to using GenAI, et cetera. Got a lot of questions, post your best on it, hoping you can help out with. So you know The pro -- I'm kind of curious, like the process for an insurer to transform using AI, is there a high cost of entry? Does it take a long time to get your data on the right form to be able to adapt? And maybe you can kind of just talk through whether what you're doing is table stakes or you feel you're a first mover or fast follower just kind of any -- it's tough in our seats to really kind of at this stage understand what it takes to do what you're doing, which doesn't seem easy?

Question: Mike Zarinsky - BMO - Analyst : That helpful. My quick follow up is thanks for the market commentary. I wasn't sure if you gave us North America commercial pricing metrics. Some of the competitors have talked about seeing a decline in property, which has caused pricing to move down a bit as well. Is that accurate for AIG as well?

Question: Mayer Shields - KBW - Analyst : Yes, yes. Okay. So Peter, you talked about monitoring the uncertainty associated with tariffs. In the interim, what -- I guess underwriting, pricing, policy, administration efforts need to happen just to reflect that uncertainty as you sort of sign contracts that are going to expose you to this risk over the next 12 months.

Question: Mayer Shields - KBW - Analyst : Okay, fantastic. That's very helpful. A second question, from a modeling perspective, should the remaining ports in 2025 have the same impact of expenses moving from other operations to the GI segments?

Question: Mike Zarinsky - BMO - Analyst : Okay, that is perfectly helpful, and I really appreciate that. Thanks, thank you.

Question: Alex Scott - Barclays - Analyst : Hi, good morning. First what I had here is, the broader environment that you described and the uncertainty that it brings, and just does it change the way you'd approach the M&A environment, and just the deployment of all this capital that you have available to you?

Question: Alex Scott - Barclays - Analyst : Got it, that's helpful. Second question I had for you is just on the makeshift. From the outside it's, difficult at times to model, things like mix shifts and -- I think the catastrophe budget in particular has come down massively and I guess we'll continue to as you do this makeshift in North America commercial in particular. So I know you already gave us some help by quantifying some of these things. I think based on some of the disclosures you gave earlier, we might even be able to back into a CAT budget. But I was hoping maybe you could just help us understand that mix shift, how should we think about the impact on underlying versus all-in combined ratio. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 12:30PM, AIG.N - Q1 2025 American International Group Inc Earnings Call

Question: Alex Scott - Barclays - Analyst : Got it, helpful.

Question: Andrew Andersen - Jefferies - Analyst : Hey, good morning. Just looking at the underlying results in North America commercials, they seem pretty strong. Is there an opportunity to take more business net here?

Question: Andrew Andersen - Jefferies - Analyst : Thank you. And then just on North America commercial ex-comp, ex-financial lines pricing, 4% RPC, I guess that's on a gross basis, perhaps a little bit better net. I guess where I'm going with this is I would think that's below loss trend. But perhaps with terms and conditions, and maybe some mixed shift it sounds like in your commentary, you're not really thinking of underlying loss ratio deterioration here?

Question: Andrew Andersen - Jefferies - Analyst : Thank you.

Question: Brian Meredith - UBS - Analyst : Yeah, thanks for fitting me in. Peter, I'm just curious. North American commercial growth, I just wanted to unpack a little bit. Is it possible to get maybe with gross written premiums. Growth was there, just try to understand the impact of the ceded reinsurance on the growth rate? I just kind of thinking about how sustainable is that growth in the near term that you saw in North American commercial?

Question: Brian Meredith - UBS - Analyst : Great, great. So nothing unusual in the first quarter. I mean, this this good solid growth you're seeing is sustainable here for at least in the near term unless of course some other property competitive and something else comes up.

Question: Brian Meredith - UBS - Analyst : Gotcha. And then one last one here, any updated thoughts on what casual loss trend is looking like here, a couple of positive developments, I think, in Georgia and some areas as far as legislation goes. Maybe thoughts on that?