“While industry losses from natural catastrophes are the second highest for the first quarter of the year on record, we expect our net retained catastrophe losses to be within expectations for 2025, largely based on our reinsurance structures.”

In context

“ovement, accounting for 110 basis points. The remaining 20 basis points of improvement came from AIG Next initiatives. This is very impressive when you consider that General Insurance absorbed $78 million of additional expenses that were booked in Other Operations in 2024. Other Operations general operating expenses were $85 million in the quarter. The accident year combined ratio, as adjusted, was 87.8%, the best first quarter result for AIG since the financial crisis. The prior year quarter was 88.4%. The calendar year combined ratio was 95.8% for the quarter, which included $520 million in catastrophe losses, driven by the California wildfires, which came in at $460 million. The combined ratio represented 9.1 loss ratio points and is a testament to our strategy for managing volatility. While industry losses from natural catastrophes are the second highest for the first quarter of the year on record, we expect our net retained catastrophe losses to be within expectations for 2025, largely based on our reinsurance structures. If you apply our current loss projections for the wildfire catastrophe to our aggregate cover, we will have approximately $35 million net of annual aggregate deductible remaining for all other perils in North America, excluding wind and earthquake, and approximately $385 million net left for all perils, both subject to a $50 million each and every loss deductible for the rest of this calendar year. We also continue to have significant property catastrophe occurrence limit available. Overall, the market remained favorable in the first quarter, particularly in segments with very good underlying fundamentals. Keith is going to cover rate in more detail in his remarks, but I wanted to provide some perspective. For North America, the rate increases in the quarter were led by excess casualty at”