American International Group Inc Q4 2024 Earnings Call Transcript

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

Question: Alex Scott - Barclays Capital Inc - Analyst : Hey, good morning. First one I have is on the -- the core ROE that you gave. I just wanted to confirm that that's including the wildfire impact and it looks like it's running a bit better than I would have expected based on the combined ratios that you've talked about in the past and corporate expenses and so forth. So I was just interested if you define it all on maybe some of the things that you're running ahead on that are improving relative to some of those comments you've made in the past? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 1:30PM, AIG.N - Q4 2024 American International Group Inc Earnings Call

Question: Alex Scott - Barclays Capital Inc - Analyst : Yes. So as a follow-up, I'd just be interested in some of the areas you're targeting towards organic growth and maybe in particular, your updated view on price adequacy just given some of the declines in property pricing in E&S and then maybe also on casualty.

Question: Meyer Shields - Keefe, Bruyette & Woods, Inc - Analyst : Great, thanks. Peter, I was hoping you could walk us through how we should think about the impact of the artificial intelligence deployed in underwriting? I know it's simplistic to say how many loss ratio points would have moved. But how should we think about it more broadly?

Question: Meyer Shields - Keefe, Bruyette & Woods, Inc - Analyst : Okay. That's very helpful. The second question is on the time line for getting the high net worth personal lines business to growth underwriting profitability. I don't know if there's anything you can share on that.

Question: Meyer Shields - Keefe, Bruyette & Woods, Inc - Analyst : Thank you so much.

Question: Paul Newsome - Piper Sandler - Analyst : Good morning, congrats on the quarter. Two question. One is are we at a point where there are aspirational areas of business that AIG is not in that you would be looking for either an organic or undergrad basis? And I guess sort of relatedly, on the other side of that question is where are we from a divesting of noncore businesses perspective? Are we pretty much done at this point?

Question: Paul Newsome - Piper Sandler - Analyst : Great. Maybe a second question. Do you have any thoughts on the regulatory environment? Clearly, lots of -- as my grandmother would say, interesting things happening in California from a regulatory perspective. But broader, do you think there's some changes here that are coming? Or do you think it's pretty status quo? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 1:30PM, AIG.N - Q4 2024 American International Group Inc Earnings Call

Question: Paul Newsome - Piper Sandler - Analyst : Thank you very much.

Question: Michael Zaremski - BMO Capital Markets - Analyst : Great. Follow-up on the expense ratio. I heard the comments about ceding commissions improving, so that should be a positive going forward. The expense ratio has been running a bit higher than expected for a while now. I mean, obviously, the loss ratio has been excellent. So that's the main focus. But just curious if you're willing to give any specific -- more specific guidance on kind of what type of expense ratio level or acquisition expense ratio level, we should be thinking about on a go-forward basis?

Question: Michael Zaremski - BMO Capital Markets - Analyst : Sorry, I was talking about the whole company, General Insurance.

Question: Michael Zaremski - BMO Capital Markets - Analyst : Quick follow-up. Just -- I know you made some comments on the casualty marketplace. I'm not fast enough to update all the pricing data you gave us, which is always helpful. But I'm curious, are you experiencing any acceleration in casualty pricing, either excess or retail? And do you still feel that I feel like a couple of quarters ago, you mentioned this might be an area you're willing to play a bit of offense in.

Question: Michael Zaremski - BMO Capital Markets - Analyst : Thank you.