Forward We Go

We have come a long way and achieved an extraordinary amount. In 2018, we were challenged with massive underwriting losses, an outsized debt-to-capital ratio, limited reinsurance and significant large limit deployment. These factors led to substantial net exposures and the highest expense base among our peers. We took bold action by imposing rigorous underwriting discipline, divesting non-core businesses, reducing debt and launching strategic transformation initiatives to focus on core business fundamentals and modernize our operations and technology infrastructure. The benefit of these actions has been evident in our performance. Over the past three years, AIG has averaged over $2 billion annually in underwriting profit – a dramatic difference compared to the $33 billion in underwriting losses incurred from 2008 to 2018^1,2. We remain relentlessly focused on maintaining this momentum.

Our 2024 full-year financial results were outstanding, demonstrating the successful execution of our strategy and strength of our balance sheet. We generated excellent underwriting results, meaningful growth in net premiums written, exceptional new business and high retention of our portfolio. We produced an increase of 9% in net income per diluted share from continuing operations year over year and an increase in adjusted after-tax income per diluted share² of 12%, or 28% on a comparable basis³. Our 2024 net premiums written totaled $23.9 billion, and we continued to see momentum in our Global Commercial business with high retention rates and record new business of $4.5 billion. Net investment income from our well-diversified, liability-matched portfolio increased in 2024, benefiting from our reallocation of assets toward higher-yield fixed maturities and loans. Notably, we achieved this outcome even as the size of our base portfolio decreased as a result of strategic divestures of non-core assets. Going forward, our investment strategy will continue to focus on reinvesting assets at higher yields, including increasing our asset allocation to private credit at attractive spreads.

We also continued to deliver against our disciplined capital management strategy, providing AIG with significant financial flexibility. We returned $8.1 billion of capital to shareholders, including $6.6 billion of share repurchases reducing our share count by 12%, $1.0 billion of dividends, and $500 million in preferred stock redemptions. We also reduced our debt by $1.6 billion, bringing our debt-to-capital ratio to 17%. We ended 2024 with parent liquidity of $7.7 billion, and if market conditions hold, we are on track to reduce the number of outstanding AIG shares below our target range of 550-600 million shares by the end of 2025. For the second consecutive year, we increased our common stock dividend by more than 10%, reflecting the Board’s confidence in our earnings trajectory.

AIG’s balance sheet strength is the result of years of disciplined work to improve our liquidity, cash flow, leverage and reserves. We will continue to execute on our disciplined capital management strategy and do not anticipate taking any additional actions that would significantly affect leverage in 2025. We remain committed to reviewing our dividend annually and anticipate increasing it in 2025 and 2026, subject to market conditions. Going forward, our key focus remains on profitable growth and allocating capital to the best opportunities to generate attractive risk-adjusted returns. 

We also are uniquely positioned to help our clients and partners navigate through the current environment. Behind every claim, there is a client in need of support and a team of AIG experts working with them to solve their challenges. This is when we are needed most, and this is what our global network of more than 4,200 Claims professionals does best. With weather events causing catastrophic damage around the world, our global Claims teams are always at the ready, providing exceptional service and insight. Our technical experts across the world bring deep product knowledge and industry acumen to handling the nuances of every claim, drawing on decades of experience navigating complex risks and thousands of hours of training each year.

We take a proactive approach to underwriting and claims, identifying emerging trends to help clients avoid threats and manage their exposure long before a claim occurs. To keep pace with the evolving risk landscape, our Claims team provides data and feedback to the underwriting team regarding exposures, ranging from severe weather events to new loss trends. This close collaboration informs future underwriting strategies and product development initiatives. We are also increasingly deploying the use of GenAI and Large Language Models to provide innovative solutions that make our processes more rigorous and effective.

I am very proud of our global Claims team and the excellent work they do every day to navigate challenges with resilience and expertise.

This “new normal” underscores the vital importance of insurance to society, and the uniquely pivotal role that AIG plays in our industry. In an environment that has never been more dynamic or complex, AIG is at the forefront of originating risk solutions. The expertise and support we provide enables businesses, institutions and individuals to overcome uncertainty and withstand challenges. Amid profound change, we help clients and partners pursue bold ideas that can shape the future. Meeting challenges head-on and transforming them into opportunities is more than our promise, it’s the essence of our Purpose.

AIG’s Purpose

Our promise protects against uncertainty and challenges
and provides the confidence for tomorrow's opportunities.

Our ability to adapt to ever-changing market conditions to meet the evolving needs of our clients and partners is one of our trademark attributes, enabling us to deliver on our Purpose while driving growth. As part of our innovation journey, we are utilizing GenAI and Large Language Models as digital accelerators and applications to support our core business. We are evolving our end-to-end processes, developing an Agentic GenAI Ecosystem, driving role clarity, and digitizing and modernizing our infrastructure. Our GenAI Ecosystem can ingest and integrate proprietary data from multiple sources to give us better data quality, analysis and outputs, in a fraction of the time it formerly would take. It is also increasing our submission response rate while enabling our underwriters to prioritize the business within our risk appetite. These solutions will help drive growth and operating leverage as we deliver them to our businesses at scale and will allow our underwriters to spend more time quoting and winning business. 

Maintaining the underwriter at the center of decision-making will continue to be paramount, and a key differentiator, for AIG. Our culture is deeply rooted in underwriting excellence and technical expertise. We help our clients and partners solve complex risk issues that require judgment and a sophisticated understanding of their needs. Our GenAI initiatives are designed to deliver better outcomes and performance, while keeping highly experienced underwriters at the core of our process.

In 2024, we announced that we will open an innovation hub in Atlanta, which will support our innovation and operational excellence journey. The hub will be the first AIG office globally where the entire end-to-end underwriting process will be embedded in a single location – from distribution and sales to data insights, underwriting, claims payments, and client servicing. By bringing the entire insurance lifecycle together, we will innovate in real time through in-office team interactions and collaborations.

We are also extending our leadership in the reinsurance space with the establishment of a special purpose vehicle backed by Blackstone through Lloyd’s, Syndicate 2478. This pioneering structure is an example of how insurance risk can be directly connected to sophisticated investors to generate attractive returns for both parties. The syndicate provides AIG with a long-term, meaningful reinsurance partner and an additional source of fee income. We are pleased to partner on this innovative structure with Blackstone.

Our ability to deliver innovative global solutions is grounded in having tremendous colleagues with a mindset of continuous learning, curiosity and improvement that fuels our performance-driven client focus and leads to the high-quality outcomes and decisions for which we are known. A Learn-It-All culture is at the heart of AIG. Our focus on fostering a workplace that reflects the global nature of our business and enables talent from different geographies, backgrounds and experiences to thrive makes us a preferred employer. 

Our inclusive culture is deeply connected to our global reach. We work collaboratively around the world with pace and a strong sense of ownership to meet and exceed the expectations of our stakeholders. Our international heritage has shaped our distinct perspective on risks, enabling us to uniquely draw on the expertise of colleagues around the globe to add value for our clients and distribution partners.

We are focused on developing colleagues at all points in their career and providing them with opportunities to build skills and advance. We invest in our people through comprehensive training programs and offer immersive learning experiences focused on critical competencies such as change management, problem solving, underwriting, claims and operations. Additionally, we prioritize leadership development to build managers’ self-awareness through assessment tools and equip them with the capabilities needed to achieve business goals.

Attracting and retaining top talent is central to our success. Our leaders are highly accomplished insurance executives with deep expertise from across the industry. We also provide our top talent with clear pathways to important leadership roles, creating a strong succession pipeline to support our long-term growth. In 2024, the numbers of internal promotions and external hires were roughly equal, showing our focus on the development of our talent. More than a quarter of our external hiring activity in 2024 was tied to building out our Atlanta innovation hub, welcoming early career analysts and summer interns, and strategically tapping into talent pools through apprenticeship and career returner programs.

AIG has entered an exciting new chapter. Today, we are a focused global general insurance company with a culture of operational excellence. At a moment when our industry is facing an increasing array of challenges, we are stronger, deeply disciplined, and well positioned for long-term success. Our very early forecast indicates we are off to a strong start for 2025 and, barring unforeseen developments, we expect to achieve meaningful organic growth driven by our Global Commercial business and the benefits of our enhanced reinsurance program. Our disciplined capital management, combined with our sustained underwriting excellence and continued focus on expense management, puts us well on track to deliver a 10%+ core operating ROE for the full year 2025.

I would like to express my gratitude to our dedicated colleagues around the world for their teamwork and contributions on behalf of our stakeholders. I also want to thank our shareholders for their continued support and investment in AIG. I firmly believe that past performance is the best predictor of future success, and I have never been more optimistic about our ability to capitalize on the opportunities ahead.

Forward We Go.