AIG Q1 net premiums written rise 24%, boosts dividend 11%

Overview

• US insurance giant's Q1 net premiums written rose 24% yr/yr to $5.6 bln

• Adjusted after-tax income per share up 80% yr/yr, driven by higher underwriting income

• Company raised quarterly dividend by 11% to $0.50 per share

Outlook

• AIG raises quarterly dividend to $0.50 per share, up 11% from prior dividend

• Company says it remains on track to meet or exceed financial objectives set at March 2025 Investor Day

• AIG says it is confident in ability to deliver disciplined, profitable growth amid complex global risk landscape

Result Drivers

• UNDERWRITING IMPROVEMENT - Co said Q1 underwriting income more than tripled, driven by lower catastrophe-related charges, improved accident year results, and higher favorable prior year development

• PREMIUM GROWTH - Net premiums written rose 24% yr/yr, primarily due to strategic transactions, reinsurance program changes, and organic growth in targeted areas

• HIGHER GENERAL INSURANCE INVESTMENT INCOME - Net investment income in General Insurance rose 17% yr/yr, supporting adjusted pre-tax income growth

Company press release: ID:nBw7kvFZKa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for American International Group Inc is $85.00, about 15.2% above its April 29 closing price of $73.79

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

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