American International Group Inc (AIG)

“As Eric stated, we are on track to bring our expense ratio below 30% for full year 2027.”

“We remain on track to reduce the general insurance expense ratio below 30% for full year 2027.”

“We expect to continue to grow.”

“We're not opposed to continuing to look for strategic opportunities to deploy capital at attractive returns, whether in the U.S. or internationally, because those opportunities broaden client relationships and often bring new talent and capabilities to the organization. You'll continue to see us pursue that.”

“We continue to execute on our previously announced investment partnerships where we have deployed capital and expect to see the benefits moving forward.”

“Overall, first half 2026 net premiums written grew 13%, which we expect to support earnings growth as it earns in over 2026 and 2027.”

“Given the market volatility experienced in public markets throughout the first quarter, we expect second quarter alternative returns to remain below our expectations.”

“Given current short-term interest rate levels, we expect the second quarter Other Operations net investment income and other line to be in the range of $30 million to $40 million, subject to market conditions.”

“And so that will have a mix where the loss ratio could go up based on that mix over time. But we're highly confident that we can offset that with expense discipline, earned premium growth and the expense ratio will go down.”

“Today, I want to reaffirm my commitment to the strategy and delivering on our Investor Day financial guidance, which includes: delivering operating EPS compound annual growth of over 20% over the 3 years ending 2027; driving core operating ROE of 10% to 13% through 2027; improving General Insurance's expense ratio to less than 30% by 2027; supporting the increase in our dividend by 10% in 2026; and achieving improvement in Global Personal Insurance combined ratio to 94% by 2027.”

“we ought to expect E&S in the sort of shared and layered to decrease.”

“For full year 2026, we continue to expect low to mid-teens net premium written growth in General Insurance.”

“Given continued pressure on rate on a policy year basis and our general observations, we have been contracting our Lexington large account portfolio, and you should expect that to continue throughout the year if the current market environment persists.”

“We expect the primary use of these proceeds will be for additional share repurchases.”

“We anticipate fully exiting our position by selling down our remaining stake in 2026, subject to market conditions.”

“Net premiums earned growth is expected to benefit AIG in the back half of 2026 and as we enter 2027.”

“As a reminder, the purchase price relating to Everest is calculated as a percentage of the total renewable premium of the Everest portfolio, which we now expect to be close to $1.8 billion after doing more work with Everest.”

“We will get the expenses out. We'll also get leverage from, you know, very strong premium growth.”

“We will not have that, headwind in in 2026.”

“We are well positioned to meet or exceed all of our Investor Day targets by 2027 or earlier”

“We are pleased with our progress and believe we are on track to achieve our target expense ratio of below 30% by 2027.”

“We remain on track to complete our accelerated rollout to the rest of North America, UK, and EMEA in 2026.”

“So there's will be less session you know, throughout you know, 2026.”

“I would expect the expense ratio to be lower on a run rate basis when you compare 26 to 25.”

“As we receive proceeds from the sell down of our remaining Corbridge position, we expect the majority will likely be deployed to additional share repurchases.”

“For 2026, we intend to repurchase at least $1 billion of common shares subject to market conditions.”

“This will be the last quarter we talk about the pushdown of expenses into the business from our lean parent initiative. We achieved this in 2025 and have a clean baseline to compare 2026.”

“For the full year 2026, we expect low to mid-teens net premiums written growth in general insurance and we believe that 2026 is already off to a very strong start.”

“We have strong momentum, with growth expected to come from multiple sources including organic growth initiatives, savings from excess of loss reinsurance, the continued successful conversion of the Evers portfolio, our whole account quota share with Convex, our special purpose vehicles, and the repositioning of our high net worth quota share at one one.”

“Our top Gen AI priorities for 2026 include deploying underwriting by American International Group, Inc. Assist and claims by American International Group, Inc. Assist across the majority of our commercial businesses.”

“We expect it will generate premium growth and fee income for a modest incremental capital commitment.”

“As part of the Convex transaction, we also took a 7.5% whole account quota share of Convex's business for 2026. Which will earn in over the year. Our share will increase to 10% in 2027, and 12.5% in 2028 and thereafter.”

“These investments closed on February 6 and they are expected to be accretive to American International Group, Inc.'s earnings within the course of the year.”

“We expect the combination of these factors to drive a 10 benefit to the combined ratio of the converted business.”

“All are expected to contribute to American International Group, Inc.'s earnings, earnings per share, and return on equity in 2026 and we believe these transactions should be more accretive in '26 and 2027 than share repurchases.”

“This week, Nippon Life waived American International Group, Inc.'s 9.9% retention requirement which gives us the ability to sell down our position throughout 2026 which we intend to do, subject to market conditions and regulatory approvals.”

“We've also moved up the rollout to the rest of North America, U.K. and EMEA commercial lines by 6 months.”

“AIG can absorb the business in our current infrastructure with no additional capital, and we will deliver an improved offering to clients and our distribution partners.”

“We expect net investment income growth going forward to be more in line with asset growth given the current and projected level of global interest rates.”

“We expect to be at $350 million of other operations expense for full year 2025.”

“Approximately 60% of this portfolio will renew in the first half of 2026.”

“In summary, we had an outstanding third quarter, made significant advancements in our strategic deployment of capital with three unique opportunities, and we're very committed to delivering on our 3-year guidance.”

“Year-to-date, our core operating ROE is 10.9%, which is well within the 10% to 13% range we stated at Investor Day and believe we can maintain and grow this metric through 2027.”

“The agreement gives AIG the opportunity to participate in 7.5% of Convex's portfolio on January 1, 2026, and that will progressively increase to 10% by 2027 and 12.5% by 2028.”

“I would expect to see more.”

“But we would expect even on a written basis, same-store sales with the way we're structured, the way we underwrite and the way we structure reinsurance that the combined ratios are going to improve in a meaningful way.”

“If you look at Financial Lines, I think their loss ratios for their book run a little higher than ours, but the expense ratio with the conversion of the portfolio will run lower. So I would think on the Financial Lines, the overall combined ratio will be at ours.”

“We expect share repurchases up to $1 billion for 2026.”

“Subject to market conditions, we intend to continue our share repurchase in 2026, albeit at more normalized levels.”

“Our expectation is that our investment opportunities with Onex will be accretive to our investment yield.”

“As stated at Investor Day, we intend to take that up to 12% to 15% over time, subject to market conditions.”

“Our teams have done a fantastic job of managing expenses, and we expect to achieve our target of below 30% by 2027.”

“We expect they will be earnings, EPS and ROE accretive 1 year after closing, aligned with the objectives we outlined at Investor Day.”

“We expect to see this premium trend reverse in 2026.”

“In summary, we delivered an excellent second quarter with annualized core operating ROE of 11.7%. While the macro and insurance market remains dynamic, we are well positioned with multiple levers to drive continued strong performance. We remain on track to achieve our 10% plus core operating ROE target in 2025 and continue to make steady progress on the long-term financial targets we outlined at our Investor Day.”

“We are on track to generate approximately $3 billion of subsidiary dividends in 2025.”

“So look, this isn't guidance that you ought to like take it way down, but it is guidance saying that I think you got to look at it for the full year, like the first half was a little bit more bumpy than I think the back half will be”

“Based on our current liquidity and cash flow profile, we anticipate being at the high end of our 2025 share repurchase guidance range of $5 billion to $6 billion, subject to market conditions.”

“For the first half of 2025, General Insurance net investment income was $1.6 billion and grew 7% year-over-year. This is a better indicator of our expected run rate for the full year, subject to market conditions.”

“We remain on track to reduce our expense ratio below 30% by 2027.”

“We are tempering our growth there because I don't know what happens to the rest of the year with CAT and it's just something we want to be cautious with, but we still want to retain the business.”

“As Peter mentioned, we have achieved our Other Operations run-rate GOE target at $85 million in the first quarter and are on track for $350 million of annual expenses in 2025.”

“Yeah. I think, look, you probably won't see the same property effect in the future because we're not going to have as much reinsurance. So, I think those nets will come down.”

“As we stated on our fourth quarter earnings call, we expect the adjusted tax rate for the full year 2025 to be in line with the full year 2024 level with slight variations quarter to quarter.”

“This was partially offset by a 70 basis point increase in our acquisition ratio, which we expect to unwind and improve over the course of 2025 as reinsurance and improved commission terms with PCS earn through.”

“We will continue our significant focus to maintain an expense structure that aligns with the size of the company that we are while investing in our data and digital strategies.”

“We expect to meet our 2025 objective of a 10%-plus core operating ROE as we outlined on Investor Day.”

“And I expect this business to continue to scale faster than any other geography in our portfolio.”

“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.”

“As we outlined at Investor Day, we expect to drive financial performance in Global Personal by improving the combined ratio by 500 basis points over the next three years towards our 94% target.”

“We continue to make progress towards our goal of achieving 10% to 13% core operating ROE.”

“We are on our way to fully replacing Corebridge earnings by 2026 and we expect to achieve a 20%-plus earnings per share compound annual growth rate over the next three years.”

“Through 2030, we expect to continue to grow at the same compound annual growth rate, fueled by India's accelerating economy, rising insurance adoption and Tata AIG's market-leading brand and reputation.”

“So, we'd end up pulling back in the event that it stayed that way.”

“As a result of our disciplined capital management, combined with our sustained underwriting excellence and continued focus on expense management, we're well on track to deliver a 10% plus core operating ROE for the full year 2025.”

“So I think we have it all moving in the right direction, attritional loss ratios, cat support from great partners and improvement in expense ratio and you'll see that contribute in 2025 to helping overall Global Personal improve.”

“So we expect to see that continue to accelerate. We got to scale this year.”

“I have singled out personal because I think that combined ratio is not where any of us want to be... which we fully expect to do.”

“I mentioned on the call that we're going to take first event losses around the same with reinsurance that we did in 2024, but second and third events will be less.”

“For 2025, we expect the adjusted tax rate to be in line with 2024, but may vary based on the geographic mix of income.”

“The makeup of our private equity portfolio is a little over 25% real estate and with the current macro environment, we expect pressure from this portion of the portfolio to continue through 2025.”

“The sale of the Global Personal Travel business will have an impact on the Global Personal segment in 2025. For full year 2024, this segment had $7.1 billion of net premiums written. When modeling 2025, the sale of the Global Travel business will remove approximately $720 million of net premiums written. This is a roughly 10 percentage point growth impact for the segment.”

“Additionally, we do not anticipate taking any actions that would significantly affect leverage in 2025.”

“We expect to return to more normalized levels of share repurchases as we enter 2026, assuming we have no further sell downs of Corebridge or other additional sources of liquidity.”

“We have $3.4 billion of the $10 billion guidance that I provided remaining for 2025. We will likely exceed this guidance and we have over $5.6 billion remaining on our current share repurchased authorization.”

“The current guidance is expected to bring us within our target share count range of 550 million to 600 million shares.”

“We exited 2024 achieving $450 million in run rate savings as part of the program and we expect the remaining benefits to be realized in the first half of 2025.”

“Our ability to be able to respond to that demand is there with plenty of capacity and an appetite that is going to allow us to improve the risk-adjusted returns and the overall combined ratio.”

“I would expect in 2025, E&S alone in our strategy will grow the top line 10%.”

“I think that there'll be more flight to quality and there'll be more flexibility for AIG in terms of our ability to drive property growth and on a risk-adjusted basis throughout the world.”

“On Lexington, we do continue to invest in Lex across all lines. So you'll see Lex continue to show up with more resources, more products, enhanced capabilities going forward.”

“We expect the fourth quarter accident year loss ratio as adjusted, will be in line with the first nine months of this year.”

“With the combination of our disciplined capital management, sustained continued underwriting performance and focus on expense management, we expect to deliver a 10% core operating ROE for the full-year 2025.”

“Importantly, our anticipated parent liquidity provides the flexibility to support additional share repurchases, which we will review in 2025.”

“The current authorization will bring us within our target share count range of 550 million to 600 million shares.”

“As we've stated previously, we will continue to execute on our $10 billion share repurchase authorization over the course of 2024 and 2025, subject to market conditions and timing of the closing of pending transactions.”

“As part of the AIG Next program, we've established a new definition of parent expense to exclusively reflect costs related to being a global regulated public company and expect those costs to be around $350 million going forward.”

“In 2025, we expect to fully realize the $500 million in savings from AIG Next.”

“In Global Personal, we had 3% net premiums written growth over the prior year quarter... both were improvements year-over-year, and we expect this segment to continue to improve its financial performance in 2025.”

“The answer is yes, we can. And we're going to be very mindful. Obviously, the primary use for proceeds from the Corebridge sell-down will go to share repurchase, but we could continue to work on leverage a little bit to give us even more financial flexibility over time.”

“Considering both lower short-term rates and projected parent liquidity balances before proceeds from any strategic transactions, short-term investment income could decline in the fourth quarter by about $25 million sequentially.”

“And both of those with the market we've got the pipeline that we've got, we expect to see continued good growth.”

“In terms of -- I outlined in my prepared remarks, the premium impact, which is the $750 million on net premiums written. But on the overall combined ratio, it's going to be de minimis in terms of what we would lose within General Insurance once we pro forma it out.”

“The guidance that we've given in terms of what we expect for the full year 2025 does not contemplate any improvement in loss ratio. It's all in the expense ratio.”

“We are intently focused on achieving our 10% plus ROE target driven by strong underwriting and top line growth, expense reduction and capital management.”

“Based on earned premium roll-forward and barring unforeseen significant changes in loss trends, we expect the accident year loss ratio ex-catastrophes will remain strong in the second half of 2024 at approximately the same level as the first half.”

“All of the factors being equal, we would expect our full year 2025 calendar year combined ratio to be the same or lower than the full year 2023 metric on a comparable basis as a result of the actions were taken as part of AIG Next.”

“Our objective is to decrease retained parent cost to $325 million to $350 million, or 1% to 1.5% of net premiums earned going forward.”

“By the end of 2025, we expect our share count to be in the 550 million to 600 million target range, consistent with the guidance that I provided last quarter, representing a total of $10 billion of share repurchases over the course of 2024 and 2025, subject to market conditions.”

“Considering the forecast for hurricane season this year and secondary peril losses year-to-date, we believe that using AIG's last year total catastrophe losses is a good proxy for full year 2024.”

“We remain committed to delivering an adjusted 10%-plus ROCE post deconsolidation of Corebridge.”

“And expect us to continue to grow that, and it's a very attractive combined ratio.”

“So again, subject to market conditions, I think my guidance I gave last quarter stands. We would expect to try and do something before the end of the second quarter.”

“We are anticipating a 50% take-up rate, which would result in approximately $225 million of onetime cost and a net run rate benefit of approximately $150 million after reinvestment for the skills and capabilities we need for the future.”

“As I stated on previous calls, we expect AIG Next to generate approximately $500 million in annual run rate savings by the end of 2025.”

“And based on the current stock price, we would expect this to get us closer to the higher end of our target share count range of 600 million to 650 million common shares by the end of the second quarter and towards the lower end of the range by the end of 2024.”

“Looking ahead, we expect up to $6 billion in repurchases in 2024 and up to $4 billion in 2025, depending on the timing of future Corebridge sell-downs and market conditions.”

“While we may do additional work on maturities, we would not expect that to take priority over share repurchases.”

“After deconsolidation, we intend to use 1% to 1.5% of net premiums earned as a benchmark of total parent expenses in the future.”

“We expect our future state parent expenses to be in the range of $325 million to $350 million by year-end 2024.”

“As we discussed last year, we expect a material financial improvement in 2024 that will be driven by higher earned premium and a lower loss ratio from the high net worth business. We saw this manifest in the first quarter and expect this improvement to continue throughout 2024.”

“We expect high single-digit growth in net premiums written for the full year in our Global Commercial Insurance business.”

“I'd also think that it's always worth understanding there's a lot of other products in the portfolio. And they've held up well, whether that's private company business or professional indemnity or the fidelity businesses. Those are strong, and we actually anticipate those will continue to hold up in '24, okay?”

“But overall, we were pleased and think that there's opportunities to improve that in 2024.”

“Agree on the rate. I mean, again, the fourth quarter was just a moment, but we would expect Financial Lines in 2024 not to keep up at the same pace on excess.”

“I don't think so. I think the accident year loss ratio that we finished the year is what I would expect in 2024.”

“With first quarter 2024 debt reduction, leverage is likely to be at the low end of our 20% to 25% range upon deconsolidation.”

“In the first half of 2024, we currently expect continued yield pickup on fixed maturities over the prior year but less improvement sequentially, given the cessation of Fed interest rate hikes and the current shape of the yield curve.”

“In Personal Insurance, we will continue to make investments, particularly in our Japan business, our global A&H business and our high net worth business where we anticipate continued growth and more importantly, profitability improvement.”

“Post Corebridge deconsolidation, we should achieve the low end of our range, which is approximately 600 million of common shares.”

“The primary focus in 2024 will be on returning capital to shareholders through share repurchases and dividends.”

“Our insurance company subsidiaries continue to have excess capital to support the type of organic growth we have seen through 2023 and would expect to see in the future.”

“As part of AIG Next, we are creating a leaner parent company with a target cost structure of 1% to 1.5% of net premiums earned.”

“As we discussed in prior quarters, the growth in North America earned premium continued to generate a lower expense ratio, and we expect the expense ratio will continue to improve in 2024.”

“We made recent leadership changes in General Insurance, which have effectively eliminated a management layer from the business, and we will continue this process throughout the organization in 2024.”

“Considering this equity level and our plans to simplify AIG's business and operational structure and to drive more predictable and sustainable profitability, we are confident that we will achieve our 10%-plus adjusted ROCE goal.”

“We remain on track to reduce 2023 corporate GOE by at least $100 million, including a higher allocation to General Insurance that has not had a material impact on the expense ratio due to expense discipline across the company.”

“Those businesses are going to have to contribute more as we get into 2024, and we're looking at the entire business model in order to improve their financial results.”

“We would see the accident year loss ratio, ex CAT, slightly go up just because of the mix of what PCS is underwriting.”

“When we look at fourth quarter 2023 and into 2024, we will see the mix of business change. And so therefore, the overall GOE and acquisition expenses should come down.”

“2023 would be a transition year, particularly with PCS, which we see a lot of net premium written coming in each quarter. The earned will follow, and so we should have some significant benefit on the ratios as we fully earn in the premium over the coming quarters.”

“We expect to execute on the current share repurchase authorization of $7.5 billion, which will reduce shares outstanding to close to 600 million shares subject to market conditions.”

“In the fourth quarter, we also plan to accelerate debt repayment to rightsize our debt stock for our target deconsolidated leverage ratio.”

“As Peter indicated, from the Validus and Laya sales, we expect about $3.7 billion of additional parent liquidity in the fourth quarter.”

“We will complete the balance of annual DVRs next quarter, which cover about $6 billion of reserves on a number of smaller lines.”

“Based on the current treasury yield curve, we expect continued pickup in portfolio yields, particularly in L&R, given the longer duration of its portfolio.”

“We expect PCS to continue to improve its financial performance and provide more operating leverage in the fourth quarter and into 2024.”

“We believe, over time, we will replace this business on an individual risk basis as stronger risk-adjusted returns.”

“Certainly, we would like to do something in the fourth quarter.”

“But I'm very comfortable that we are driving margin on a written basis, and that will continue as we get to the back half of the year.”

“In the near term, we will accelerate share repurchases in the fourth quarter and into 2024 with the additional liquidity from Validus proceeds, in addition to ordinary course liquidity generated by our business operations through subsidiary dividends and ongoing profitability.”

“We know that we're an outlier on the expense ratio. That's a big part of what we're doing in the future operating model. And we'll start to show more and more evidence of that in the coming quarters and as we go into 2024.”

“And we would expect to see more growth and more profitability improvement there.”

“So I would expect to see improved performance there.”

“So we'll see some investment in Japan on digital workflow and digital interfacing with customers.”

“So the submission activity is substantial. And then I think being one of the largest wholesale underwriters and respected as one of the top in terms of underwriting excellence, we're getting looks at multiple lines of business. And we have staffed up in order to take on that additional volume on the property and casualty side. So I was very pleased that the team executed as well as it did, and I expect that to continue.”

“We continue to expect approximately $500 million in cost reductions across AIG with a cost to achieve of approximately $400 million with substantially faster earn-in of savings than we saw with AIG 200.”

“A key focus has been executing against IT separation, which we believe will be substantially complete by the end of this year.”

“This should earn in for our high and ultra-high net worth business through the second half of 2023 and into 2024.”

“Fourth, we expect the accident year loss ratio for our high and ultra-high net worth business will improve with the combination of improved pricing in our admitted business and more business migrating to the non-admitted market, which already had a very positive impact on PCG's accident and policy year loss ratios in prior quarters.”

“Third, AIG has [indiscernible] costs from the transition of PCG to an MGA. And we expect to eliminate these costs over the next 18 months.”

“The additional earned premium will provide operating leverage, which will reduce our GOE ratio in the third and fourth quarter.”

“And we expect that earned premium growth will continue to accelerate in the third and fourth quarter.”

“AIG will continue to support the MGA. And because we will be assuming risk on our balance sheet, we've established the MGA's risk framework, which is designed to improve its financial performance in 2023 and as we enter 2024.”

“The MGA has officially launched, and we expect to add new capital providers in the coming quarters.”

“Over the remainder of the 2023 crop season, AIG will continue to benefit from earned premium for crop business booked since the start of the year. But as we enter 2024, this business will no longer have an impact on AIG's financial results.”

“In addition, a $1 billion intercompany loan from Validus Re to AIG will be settled through internal dividends, and we expect AIG to benefit from a $400 million reduction in risk-based capital requirements following the closing.”

“We also expect to receive, through a pre-closing dividend, excess capital in the legal entities being transferred to RenRe, which we estimate will be approximately $200 million.”

“Yes. So the secondary is our base case. And we would expect to do something hopefully before year-end, subject to market conditions.”

“We remain on track to reduce AIG common stock outstanding to be between 600 million and 650 million shares and achieve a debt-to-capital leverage at the lower end of our 20% to 25% range post deconsolidation of Corebridge.”

“So we expect to be trading actively in the second quarter.”

“I think the growth that you saw in the first quarter, obviously, there's a mix of business, but I would expect to see similar growth throughout the rest of the year.”

“We have begun to separate Corebridge. And -- but upon deconsolidation, approximately $300 million of the AIG Corporate expenses will move to Life and Retirement.”

“Certainly, let me start with AIG 200 because we still have more to earn through on AIG 200 savings in 2023 and 2024. So over 50% of that will be earned in mostly through the second and through fourth quarter of 2023.”

“We're not going to be where we want to be in 2023, but believe by the time we hit 2024, those results will continue to improve.”

“We expect incremental yield pickup from this repositioning in 2Q '23 and also from higher reinvestment rates throughout 2023 based on the current rate and spread environment.”

“As we progress our future state business model, we anticipate achieving approximately $500 million in cost reductions at AIG parent and a cost to achieve of around $400 million with substantially quicker earn-in of savings that we achieved with AIG 200.”

“We advanced each component during the first quarter and expect this to continue throughout 2023.”

“For full year 2023, we expect to retain about $800 million to $900 million of earned premiums, $750 million of which we'll earn in over the remainder of the year.”

“We expect approximately $700 million to $800 million of net premiums written for 2023, 75% of which booked in the first quarter.”

“We expect to see growth in International Personal for the remainder of 2023 and believe results will continue to strengthen as we move through the year.”

“This will earn in through the second half of 2023 and into 2024.”

“We do not expect to deploy additional limits beyond our current aggregate allocated to Florida, although we do anticipate significant rate increases and improved terms and conditions.”

“We saw the benefits of these actions in the first quarter and expect that to continue throughout the year.”

“We are incredibly well positioned. We have no aggregate restrictions. And where we see risk-adjusted returns that are attractive, which we already have, we're going to deploy capital.”

“With the reduction in AIG debt we achieved, our post-deconsolidation leverage will be in line with best-in-class peers.”

“The first part, Elyse, we do not change our loss cost assumptions from what we had outlined in the third quarter, so 6.5% remains our view.”

“This reduction in AIG debt will lower AIG's holding company interest expense from about $1 billion in 2021 to roughly $500 million in 2023, excluding interest expense on Corebridge issued debt.”

“And in 2023, we expect an incremental cost of $75 million to $100 million in Other Operations' GOE related to the separation.”

“New product margins in L&R were attractive and in excess of long-term targets, supported by higher new money yields, including from Blackstone. After years of spread compression, L&R spreads are expected to improve in 2023.”

“Our current expectation is that the majority of net proceeds of the secondary offering will be used for AIG common stock repurchases.”

“We expect meaningful growth in Lexington this year, led by Property where, over the last few years, we have prudently tightened limits, improved terms and conditions and increased profitability while driving top line growth.”

“Looking ahead, we will continue our measured approach for other renewals. For example, if meaningful market changes continue, we will carefully consider our positions at the April 1 Japan renewals, and we will continue to be very cautious with capital deployed at June 1 in Florida.”

“Due to inflationary and other related factors that have resulted in an increase in property loss costs, we are increasing our aggregate loss cost trend to 6.5%, both in North America and international.”

“We expect the value to continue to move in a very positive direction based on how strong the business is.”

“Over time, we expect the yield uplift from net investment income could add 1 to 2 points to ROCE.”

“we continue to expect that post deconsolidation of Corebridge, AIG will achieve a return on common equity at or above 10%.”

“Subject to ordinary course blackout periods, this means that our likely windows for a secondary offering of Corebridge common stock in the first half of 2023 will be in mid- to late March as well as mid-May to late June.”

“Corebridge now expects spread compression to convert to expansion beginning in 2023.”

“This government policy was revised in the third quarter, and as a result, we expect the issue to have a de minimis impact in future quarters, starting with the fourth quarter of this year.”

“We continue to expect Corebridge to pay $600 million in annual dividends, with its first quarterly dividend of $148 million declared 15 days after the IPO close and already paid, to have the financial flexibility to repurchase shares or reduce AIG's ownership stake as early as the second quarter of 2023 and to achieve a return on equity of 12% to 14% over the next 24 months.”

“the business accelerated certain actions and is now expected to deliver run rate savings of over $100 million by the end of 2022, ahead of our original schedule”

“With General Insurance and Life and Retirement portfolio durations are just under 4 and 8 years, respectively, the overall rising interest rate environment will provide a tailwind to our investment portfolio returns.”

“We see opportunities to grow in the future when we look to the back half of this year. We have very strong retention. The new business that's been coming in is going to be more retained.”

“With respect to the execution on our capital management priorities, we have already accelerated our share repurchases this year and expect additional repurchases as we get more clarity on the timing of the proceeds from the Corebridge IPO.”

“We also expect roughly $300 million of the AIG corporate expenses will move to Life and Retirement upon deconsolidation.”

“Going forward, we would expect to move over time to an asset allocation with less volatility.”

“As we discussed on our last call, we expect that post deconsolidation of the Life and Retirement business, AIG will achieve a return on common equity at or above 10%.”

“We continue to expect that Corebridge will pay an annual dividend of $600 million post-IPO that will have a payout ratio of 60% to 65%, and that it will achieve a return on equity of 12% to 14% over the next 24 months.”

“Last quarter, we estimated these savings to be in the range of $200 million to $300 million, but we now expect to generate closer to $400 million of savings over the next 3 years with the majority of the run rate savings to be achieved in the next 24 months.”

“As a reminder, we report the results of our private equity holdings on a 1-quarter lag, and we may have an impact in the third quarter as well.”

“We currently expect to have full line of sight into the $1 billion of exit run rate savings either contracted or identified by the end of the second quarter, 6 months earlier than originally planned.”

“Of the $1 billion of parent expenses, we expect that approximately $300 million will move to Corebridge upon deconsolidation.”

“Post deconsolidation of Corebridge, we expect that AIG will earn a 10% ROCE, although there are many moving pieces that will get to this result, including the size and timing of the Corebridge IPO, additional capital management actions and continued progress on reducing expenses.”

“Within General Insurance, we have $11 billion of floating rate securities, which will begin to see some benefits in the near term, most of which are not tied to longer-dated liabilities.”

“We continue to target debt leverage in the high 20s, excluding AOCI for Corebridge; and in the low 20s, including AOCI for AIG going forward.”

“With respect to share buybacks, as I mentioned earlier, we repurchased $1.4 billion of common stock in the first quarter and are on track to buy back at least $1 billion more in the second quarter.”

“We expect that the cost for Corebridge to operate this hybrid model, taking into account both Blackstone and BlackRock, will be approximately the same as the fully loaded costs of our prior investment management operating model, where asset management was largely handled in-house.”

“We also continue to expect that we will retain a greater than 50% interest in this business post IPO.”

“We continue to target an IPO in the second quarter, subject to market conditions and required regulatory approvals.”

“To illustrate the point, holding all other variables constant and assuming 100 basis point parallel shift in the yield curve, we would anticipate approximately $500 million of benefit to adjusted net investment income over a 1-year period with nearly $200 million in General Insurance and $300 million in Life and Retirement.”

“We would certainly expect improvement, but I wouldn't be surprised if 1 quarter went off or something. But the year, we certainly expect continued improvement.”

“We think that there's opportunity there because we like the book. It's a better price book into 2022.”

“The AIG Re portfolio strategically took the opportunity to further derisk and rebalance the portfolio away from property CAT due to our view of a less-than-adequate returns in that space and expanded further into Casualty and Specialty Lines and expects to continue that trend.”

“With the level of rate that we have achieved in just the last 12 months, we expect that margin expansion will continue at least through 2022 and likely into accident year 2023.”

“Our expectation is that a vast majority of this dividend payment will be used to reduce debt at AIG, and therefore, the overall amount of debt across our consolidated company will remain relatively constant at the time of the Life Retirement IPO.”

“We expect that over time, this business will sustain a payout ratio to shareholders of 60% to 65% between dividends and share repurchases on a full calendar year basis.”

“We continue to expect to retain a greater than 50% interest immediately following the IPO and to continue to consolidate Life Retirement's financial statements at least until such time as we fall below the 50% ownership threshold.”

“But I think now with the number of moving pieces between the 9.9% in terms of what we're doing to set up the IPO and what we're doing with General Insurance in terms of growth, we see a lot of opportunities to grow with margin and with improved combined ratios over time.”

“Having said that, we currently expect to retain a greater than 50% interest immediately following the IPO and to continue to consolidate Life and Retirement's financial statements until such time as we fall below the 50% ownership threshold.”

“We continue to expect an IPO to occur in the first quarter of 2022 or potentially in the second quarter, subject to regulatory approvals and market conditions.”

“General Insurance has a much higher percentage allocation to private equity and hedge funds, which is likely to change moving forward.”