American International Group Inc

Q1 performance: exceptional “momentum” with broad underwriting improvement - Management called it AIG’s strongest Q1 since Peter Zaffino joined. - General Insurance net premiums written: +18% YoY (constant currency), driven by Global Commercial +21% and Global Personal +11%. - Underwriting: Accident year combined ratio (adjusted) 86.6% (-120 bps YoY); loss ratio flat 57.3% (adjusted). - Global Personal Insurance: accident year combined ratio (adjusted) 89.9% (-570 bps YoY); calendar year combined ratio 89.4% (improvement from 107.9% prior year). - Capital & profitability: Adjusted after-tax EPS: $2.11 (+80% YoY); Core operating ROE 12.2%.

Premium growth tailwinds from reinsurance/renewals (including Everest) - AIG highlighted enhanced terms & conditions at the Jan 1 renewal cycle, with substantial YoY savings, including the Everest portfolio, contributing to Q1 net premiums written. - Reinsurance structure emphasized: lower net retention for nat cats and higher exhaust limits → better reinsurance pricing, supporting growth. - Investors will likely view this as a key driver of the strong Q1 premium growth, while management framed it as part of a consistent strategy (not a one-off).

Strong pricing discipline, but U.S. Property (large accounts) remains pressured - Q1 pricing direction (examples): - North America Property: -11% overall pricing - U.S. Property (Lexington large account / E&S): under “significant pricing pressure” - International Property: down 4% in the quarter (only the second quarter of rate reductions in 5 years) - U.S. casualty lines: broadly favorable (e.g., Excess Casualty +14%, Lexington Casualty +8%) - Response strategy: contracting Lexington large account portfolio (down -19% YoY) and non-renewing accounts that no longer meet expected risk-adjusted returns; capacity redeployment to better opportunities. - Key “good vs bad” message: underwriting remains strong, but management is actively shrinking in the segment facing the most pricing degradation.