AIG Q1 Underwriting Revenue Extra Than Halved on Wildfire Losses – Model Slux

American Worldwide Group (AIG) reported first quarter internet earnings attributable to shareholders of $698 million, down 41.5% from the identical interval a yr in the past.

First quarter underwriting earnings in AIG’s Basic Insurance coverage section—North America industrial, Worldwide industrial, and international private—dropped 59% in comparison with final yr to $243 million.

AIG recorded $525 million in catastrophe-related fees in Q1 2025, in comparison with $106 million for Q1 2024. About $460 million in losses have been from the California wildfires.

AIG’s private traces enterprise recorded a Q1 underwriting lack of $126 million in comparison with a acquire of $30 million a yr in the past. The mixed ratio for international private traces was 107.9 from 98.3 for Q1 2024 as a consequence of this yr’s wildfires. Nonetheless, internet premiums written (NPW) grew 3% on a comparable foundation (constant-dollar foundation), largely from progress in private auto.

Trying past the disaster losses, AIG CEO Peter Zaffino in an announcement stated the insurer had an “glorious begin” to the yr, producing “very robust outcomes.” The accident-year mixed ratio for Basic Insurance coverage was 87.8, the very best Q1 outcome for the reason that monetary disaster, he stated.

Associated: AIG: Turning One Human Underwriter Into 5, ‘Turbocharging’ E&S

“Whereas the broader macroeconomic and geopolitical setting stays unsure, AIG is navigating these challenges from a place of energy given our international diversified portfolio, disciplined underwriting, and resilient steadiness sheet,” Zaffino added.

Underwriting earnings fell 45% and 27% for North America industrial and Worldwide industrial, respectively. The Q1 mixed ratio for North America industrial worsened 5.8 factors to 93.9 and Worldwide industrial was 88.2 in comparison with 83.6 final yr.

However AIG stated NPW of North American industrial grew 14%, thanks primarily to its Lexington Insurance coverage division. Worldwide industrial NPW grew NPW 8% on a comparable foundation.

Subjects
Disaster
Pure Disasters
Revenue Loss
Wildfire
Underwriting
AIG