VALUATION HIGHLIGHTS

1. General Insurance constitutes 100% of the Trefis price estimate for AIG's stock.

WHAT HAS CHANGED?

Latest Earnings: Q1 FY'26

American International Group reported Q1 FY'26 General Insurance net premiums written of $5.6 billion, representing a 24% increase year-over-year compared to $4.5 billion in Q1 FY'25. Adjusted after-tax income reached $2.11 per diluted share, up 80% from $1.17 per share in the prior-year period. Financial performance was powered by a 219% surge in General Insurance underwriting income to $774 million, driven by 37% premium growth in North America Commercial lines, significantly lower catastrophe-related losses of $180 million, and favorable prior-year reserve development.

Note: AIG's FY'25 ended on December 31, 2025. Q1 FY'26 ended on March 31, 2026.

Corebridge Equity Monetization and Pure-Play Insurance Pivot

AIG further executed its strategic transformation into a pure-play General Insurance carrier by reducing its common stock ownership in Corebridge Financial to 5.6%, raising approximately $750 million in capital. Concurrently, the Board of Directors approved an 11% increase in the quarterly dividend to $0.50 per share, marking four consecutive years of double-digit percentage dividend expansion.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of AIG's value that present opportunities for upside or downside to the current Trefis price estimate:

General Insurance Operations

• Commercial Underwriting Ratios and Premium Growth: Global Commercial lines net premiums expanded 21% on a constant dollar basis while maintaining an adjusted accident year combined ratio of 86.6%. Sustained pricing power across specialized commercial risks provides upside potential, whereas elevated social inflation in liability lines or severe hurricane activity poses downside margin risk.


• Net Investment Income and Reinsurance Optimization: Higher yields on fixed income portfolio reinvestments helped generate $864 million in segment net investment income. Further optimization of reinsurance structures enhances earnings stability, though volatility in private equity and alternative holdings remains a variable for investment yields.

For additional details, select a division from the interactive Trefis split for AIG at the top of the page.

BUSINESS SUMMARY

American International Group is a leading global risk organization providing commercial, personal, and specialty property and casualty insurance solutions across North America and international markets.

SOURCES OF VALUE

AIG's global commercial property and casualty franchise and disciplined underwriting architecture serve as the core drivers of long-term earnings quality and shareholder value.

Global Commercial Lines Market Leadership

AIG maintains a dominant footprint in multinational commercial insurance, delivering specialized casualty, property, and financial coverage supported by extensive global underwriting expertise.

High-Margin High Net Worth Personal Lines Footprint

The company's premier High Net Worth personal lines business generates high-margin premiums through customized property protection and tailored risk prevention services.

KEY TRENDS

Disciplined Reinsurance and Catastrophe Risk Management

In response to global climate risks, primary property insurers are utilizing refined underwriting models and higher attachment points on reinsurance coverage to insulate core operating margins against severe natural disasters.

Capital Optimization and Aggressive Share Repurchases

Following the separation of its life and retirement business, AIG is channeling substantial cash proceeds toward share repurchases and cash dividends to maximize capital efficiency and return on equity.