AIG’s first-quarter results were met with a positive market reaction as the company delivered non-GAAP profit well above Wall Street’s expectations despite missing on revenue. Management attributed this outcome to disciplined underwriting, expense control, and growth in its commercial insurance segments. CEO Peter Zaffino pointed to robust premium growth in North America Commercial Insurance and operational improvements, especially in expense ratios. The company also highlighted the benefit from the divestiture of its travel business and ongoing execution of its digital and underwriting initiatives, which helped offset higher catastrophe losses.

Is now the time to buy AIG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions AIG’s Q1 Earnings Call

• Mike Zaremski (BMO Capital Markets) asked about the complexity and costs of adopting GenAI across underwriting and operations. CEO Peter Zaffino explained that AIG’s digital transformation began years ago with foundational data work and is now “live” in several business lines.
• Meyer Shields (KBW) pressed on how tariff uncertainty impacts underwriting and pricing. Zaffino responded that AIG is building extra risk margins into pricing where appropriate and monitoring inflation factors closely on impacted lines.
• Alex Scott (Barclays) questioned whether the uncertain geopolitical environment alters AIG’s M&A or capital deployment strategy. Zaffino said the company remains disciplined and would deploy capital only for opportunities additive to AIG, otherwise returning excess to shareholders.
• Andrew Anderson (Jefferies) asked if the strong North America Commercial results could lead AIG to take on more net business. Zaffino replied that the company is satisfied with its current risk profile and does not plan to increase net exposure, especially in property and casualty.
• Brian Meredith (UBS) inquired about the sustainability of North America Commercial growth and any changes in casualty loss trends. Zaffino indicated growth was supported by strong retention and new business, but property growth effects may normalize, and no changes to casualty loss cost assumptions are planned for now.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace and measurable impact of GenAI adoption across underwriting and claims, (2) the execution and growth trajectory of the Tata AIG joint venture as a bellwether for international expansion, and (3) management’s ability to maintain expense discipline and underwriting profitability despite external pressures from tariffs, inflation, and catastrophes. These signposts will be key to tracking AIG’s progress toward its multi-year targets.

AIG currently trades at $82.35, up from $80.72 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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