Q1 2024 American International Group Inc Earnings Call

May 2, 2024

Operator: Good day, and welcome to AIG's first quarter 2024 financial results conference call. This conference is being recorded. Now, at this time, I would like to turn the conference over to Quentin McMillan. Please go ahead.

Good day and welcome to Aig's first quarter 'twenty four financial results Conference call. This conference is being recorded.

Now at this time I'd like to turn the conference over to Quentin Mcmillan. Please go ahead.

Quentin John McMillan: Good morning, and thanks very much. Today's remarks may include forward-looking statements which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based on management's current expectations. AIG's filings with the SEC provide details on important factors that could cause actual results or events to differ materially. Unless as required by applicable securities laws, AIG is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change.

Quentin John McMillan: Good morning, and thanks very much today's remarks may include forward looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based on management's current expectations Afg's filings with the SEC provide details on important factors that could cause actual results or events to differ materially except as required by applicable securities law.

Quentin John McMillan: Today's remarks may also refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, financial supplement, and earnings presentation, all of which are available on our website at AIG.com. Additionally, note that today's remarks will include results for AIG's life and retirement segment and other operations on the same basis as prior quarters, which is how we expect to continue to report until the deconsolidation of Corbett finance. However, AIG segments and U.S. GAAP financial results, as well as its key financial metrics with respect thereto, differ from those reported by CoreBridge Financial.

<unk> is under no obligation to update any forward looking statements as circumstances or management's estimates or opinions should change today.

Quentin John McMillan: Today's remarks May also refer to non-GAAP financial measures.

Quentin John McMillan: A reconciliation of such measures to the most comparable GAAP figures is included in our earnings release financial supplement and earnings presentation, all of which are available on our website at AIG Dot Com. Additionally, note that today's remarks will include resulted AIG life and retirement segment and other operations on the same basis as prior quarters, which is how we expect to continue to report until the deconsolidation.

Quentin John McMillan: <unk> of corporate financial AG segment, and U S. GAAP financial results as well as Aig's key financial metrics with respect thereto differ from those reported by corporate financial corporate financial will host its earnings call on Friday may 3rd.

Quentin John McMillan: Corbridge Financial will host its earnings call on Friday, May. Finally, today's remarks, as they relate to net premiums written, adjusted pre-tax income, underwriting income, and margin and general insurance, are presented both on a reported basis, as well as a comparable which reflects year-over-year comparison on a constant dollar basis as adjusted for the sale of crop risk services and the sale of Validus. Please refer to the footnote on page 26 of the first quarter financial supplement for prior period results for the crop business and Validus. With that said, I'd now like to turn the call over to our chairman and CEO, Peter Zaffino.

Quentin John McMillan: Finally, today's remarks as they relate to net premiums written adjusted pre tax income underwriting income and margin in general insurance are presented both on a reported basis as well as a comparable basis, which reflects year over year comparison on a constant dollar basis as applicable adjusted for the sale of crop risk services and the sale of Validus rate. Please refer to the footnote on.

Quentin John McMillan: Page 26 of the first quarter financial supplement for prior period results for the crop business and Validus re.

Quentin John McMillan: That I would now like to turn the call over to our chairman and CEO Peter Zaffino.

Peter Salvatore Zaffino: Good morning, and thank you for joining us today to review our first quarter 2024 financial results. Following my remarks, Sabra will provide more detail on the quarter, and then we'll take questions. Kevin Hogan will join us for the Q&A portion of the call.

Peter Salvatore Zaffino: Good morning, and thank you for joining us today.

Peter Salvatore Zaffino: To review, our first quarter 2024 financial results.

Peter Salvatore Zaffino: Following my remarks saver will provide more detail on the quarter and then we'll take questions.

Quentin John McMillan: Kevin Hogan will join us for the Q&A portion of the call.

Peter Salvatore Zaffino: Here are some highlights from the quarter. Adjusted after-tax income was $1.2 billion, or $1.77 per diluted common share, representing a 9% increase in earnings per share year over year. Consolidated Net Investment Income, on an adjusted pre-tax income basis, was $3.5 billion, a 13% increase year over year. General insurance underwriting income was $596 million, a 19% increase year over year, reflecting improved accident year results, including lower catastrophes, and increased 67% year over year on a comparable basis if you exclude divested businesses from the prior year quarter.

Peter Salvatore Zaffino: Here are some highlights from the quarter. Adjusted after-tax income was $1.2 billion or $1.77 per diluted common share, representing a 9% increase in earnings per share year over year. Consolidated net investment income, on an adjusted pre-tax income basis, was $3.5 billion, a 13% increase year over year. General insurance underwriting income was $596 million, a 19% increase year over year, reflecting improved accident year results, including lower catastrophes, and increased 67% year over year on a comparable basis if you exclude divested businesses from the prior year quarter.

Saver: Here are some highlights from the quarter.

Saver: Adjusted after tax income was $1 2 billion or $1 77.

Quentin John McMillan: Per diluted common share representing a 9% increase in earnings per share year over year.

Quentin John McMillan: Consolidated net investment income.

Kevin Hogan: On an adjusted pretax income basis was $3 5, billion% to 13% increase year over year.

Kevin Hogan: General insurance underwriting income was $596 million, a 19% increase year over year.

Kevin Hogan: Reflecting an improved accident year results, including lower catastrophes and increased 67% year over year on a comparable basis, if you exclude divested businesses from the prior year quarter.

Peter Salvatore Zaffino: The accident-year combined ratio, excluding catastrophes, was 88.4%, a 30 basis point improvement from the prior year quarter, and was the 10th consecutive quarter of a sub-90 combined ratio. The quarter also reflected the significant improvement we have made in controlling volatility in our property portfolio, as total catastrophe-related losses in the quarter were $107 million, or 1.9%, representing a 230 basis point improvement year-over-year. Turning to life and retirement, the business reported very good results with premiums and deposits of $10.7 billion in the first quarter, their highest quarterly result achieved in the last decade, and strong APTI growth of 12% over the prior year quarter. Last September, Corbridge entered into a definitive agreement to sell the UK life insurance business to Aviva PLC, which calls on April 8.

Peter Salvatore Zaffino: The action year combined ratio, excluding catastrophes, was 88.4%, a 30 basis point improvement from the prior year quarter, and was the 10th consecutive quarter of a sub-90 combined ratio. The quarter also reflected the significant improvement we have made in controlling volatility in our property portfolio, as total catastrophe-related losses in the quarter were $107 million, or 1.9%, representing a 230 basis point improvement year-over-year. Turning to life and retirement, the business reported very good results with premiums and deposits of $10.7 billion in the first quarter, their highest quarterly result achieved in the last decade, and strong APTI growth of 12% over the prior year quarter. Last September, Corbridge entered into a definitive agreement to sell the UK life insurance business to Aviva PLC, which calls on April 8.

Kevin Hogan: The accident year combined ratio, excluding catastrophes was 88, 4% a 30 basis point improvement from the prior year quarter and was the 10th consecutive quarter of a sub 90 combined ratio.

Kevin Hogan: The quarter also reflected the significant improvement we have made in controlling volatility in our property portfolio as total catastrophe related losses in the quarter were $107 million or one 9%, representing a 230 basis point improvement year over year.

Kevin Hogan: Turning to life and retirement business reported very good results with premiums and deposits of $10 7 billion.

Kevin Hogan: In the first quarter their highest quarterly result achieved in the last decade.

Kevin Hogan: Strong <unk> growth of 12% over the prior year quarter.

Kevin Hogan: Last September corbridge entered into a definitive agreement to sell the UK life insurance business to Aviva plc, which calls on April eight.

Peter Salvatore Zaffino: The net proceeds were approximately $550 million and will be used for Corbridge share repurchase. During the quarter, we returned over $2.4 billion to shareholders through $1.7 billion of common stock repurchase, $250 million of dividends, and the redemption of all our outstanding Series A Preferred Stock for $500 million. We repaid $459 million of debt upon maturity, lowering our total debt to $9.8 billion.

Kevin Hogan: Net proceeds were approximately $550 million and will be used for corporate share repurchases.

Kevin Hogan: During the quarter, we returned over $2 4 billion to shareholders through $1 7 billion of common stock repurchases.

Kevin Hogan: $250 million of dividends and the redemption of all our outstanding series, a preferred stock for $500 million.

Kevin Hogan: We repaid $459 million of debt upon maturity lowering our total debt to $9 8 billion.

Peter Salvatore Zaffino: In addition, we repurchased approximately $613 million of common stock in April. Based on our strong performance, the AIG Board of Directors approved an 11% increase in AIG's quarterly common stock dividend to $0.40 per share. The AIG Board of Directors also increased the share repurchase authorization to $10 billion, effective May 1st. Lastly, we ended the first quarter with strong parent liquidity of $5.1 billion. Overall, I'm very pleased with our first quarter results and the continued strong execution of our strategy to deliver sustained underwriting excellence, profitability, and disciplined capital management. In my remarks this morning, I will discuss four important topics.

Kevin Hogan: In addition, we repurchased approximately $613 million of common stock in April.

Kevin Hogan: Based on our strong performance.

Kevin Hogan: <unk> Board of directors approved an 11% increase in Aig's quarterly common stock dividend to <unk> 40 per share.

Kevin Hogan: The AIG board of directors also increased the share repurchase authorization to $10 billion.

Kevin Hogan: Effective may one.

Kevin Hogan: Lastly, we ended the first quarter with strong parent liquidity of $5 1 billion.

Kevin Hogan: Overall, I'm very pleased with our first quarter results and the continued strong execution of our strategy to deliver sustained underwriting excellence profitability and disciplined capital management.

Peter Salvatore Zaffino: I will provide some financial highlights for the quarter focused on the general insurance business, including some insight into our net premiums risk. Second, I will talk briefly about the results in life and retirement. Third, I will provide an update on our capital management strategy, specifically our plans for 2024 and 2025. And finally, I will discuss our path to a 10% plus ROCE and provide more detail on AIG Next and our future state operating structure that will create value through a leaner and more unified company.

Kevin Hogan: During my remarks, this morning, I will discuss four important topics.

Kevin Hogan: <unk>.

Kevin Hogan: I will provide some financial highlights in the quarter focused on the general insurance business, including some insight into our net premiums written.

Kevin Hogan: Second I will talk briefly about the results in life and retirement.

Kevin Hogan: Third I will provide an update on our capital management strategy, specifically, our plans for 2024 and 2025.

Kevin Hogan: And finally, I will discuss our path to a 10% plus <unk> and provide more detail on AIG next and our future state operating structure that will create value through a leaner and more unified company.

Peter Salvatore Zaffino: Let me take a moment to update you on our sell-down of Corbyn. Our Corbridge Holdings currently stand at 324 million common shares outstanding, which represents a 53% ownership. We continue to explore all alternatives to reduce our ownership stake in Corbyn.

Kevin Hogan: Let me take a moment to update you on our sell down of corbridge.

Kevin Hogan: Our Corbridge holdings currently stand at 324 million common shares outstanding which represents a 53% ownership stake.

Kevin Hogan: We continue to explore all alternatives to reduce our ownership stake in corbridge.

Peter Salvatore Zaffino: Once Corbridge is deconsolidated from AIG, Life and Retirement's balance sheet and income statement will no longer be included in AIG's consolidated financial statement, and our remaining ownership stake will be reported in parent investments, with dividends reported in net investment income. Sabra went through this in detail on our last earnings call. We have been evaluating opportunities to maximize long-term value for Corbridge and have considered multiple strategic alternatives that we believe will best position CoreBridge for future success.

Kevin Hogan: Once <unk> deconsolidation from AIG life, and retirement balance sheet and income statement will no longer be included in Aig's consolidated financial statements.

Kevin Hogan: Our remaining ownership stake will be reported in parent investments with dividends reported a net investment income.

Kevin Hogan: Sabre went through this in detail on our last earnings call.

Kevin Hogan: We have been evaluating opportunities to maximize long term value for corbridge.

Kevin Hogan: And have considered multiple strategic alternatives that we believe will best position corbridge for future success.

Peter Salvatore Zaffino: We remain committed to reducing AIG's ownership and to fully selling our remaining stake, and I will continue to provide updates to all of our stakeholders. In terms of the use of Corbridge-related proceeds, AIG expects to continue to utilize excess capital and liquidity with a focus on returning capital to shareholders through share repurchases and liability management, which I will discuss later when I outline our capital management strategy. Now, I'm turning to general insurance.

Kevin Hogan: We remain committed to reducing aig's ownership and to fully selling our remaining stake and I will continue to provide updates to all of our stakeholders.

Kevin Hogan: In terms of the use of corbridge related proceeds AIG expects to continue to utilize excess capital and liquidity with a focus on returning capital to shareholders through share repurchases and liability management, which I will discuss later when I outlined our capital management strategy.

Peter Salvatore Zaffino: Net premiums written were $4.5 billion and reflected the impact of the dispositions of Validus Re and CropRisk services, as well as actions we've taken to restructure specific treaty reinsurance. Overall, global commercial had a very strong quarter; excluding the impact of our divestitures, global commercial net premium written growth was 1% year over year. First, I want to reconfirm the guidance for the year. We expect high single-digit growth and net premiums written for the full year in our global commercial insurance business. Now for the results.

Kevin Hogan: Now turning to general insurance.

Kevin Hogan: Net premiums written were $4 5 billion.

Kevin Hogan: And reflected the impact of the dispositions of Validus re and crop risk services as well as actions we've taken to restructure specific treaty reinsurance.

Kevin Hogan: Overall global commercial had a very strong quarter.

Kevin Hogan: Excluding the impact of our divestitures global commercial net premiums written growth was 1% year over year.

Speaker Change: First I want to reconfirm the guidance for the year, we expect high single digit growth in net premiums written for the full year and our global commercial insurance business now the results.

Peter Salvatore Zaffino: In North America commercial, net premiums written group grew 4%. Lexington grew 24%, which was led by Casualty and Western World. Our excess casualty line grew 46%, and our captive solutions grew 20%. There's been meaningful commentary on the excess and surplus lines market, and we continue to experience terrific fundamentals and results in Lex. Let me provide a few examples. Our submission volume was up over 50% year over year. Lexington delivers strong new business, outperforming last year's record first quarter results, balance across all lines, and retention remains strong for Lexington at 78%.

Peter Salvatore Zaffino: In North America commercial, net premiums written group grew 4%. Lexington grew 24%, which was led by Casualty and Western World. Our excess casualty line grew 46%, and our captive solutions grew 20%. There's been meaningful commentary on the excess and surplus lines market, and we continue to experience terrific fundamentals and results in Lex. Let me provide a few examples. Our submission volume was up over 50% year over year. Lexington delivers strong new business, outperforming last year's record first quarter results, bounce across all lines, and retention remains strong for Lexington at 78%.

Speaker Change: In North America commercial net premiums written grew 4%.

Kevin Hogan: Licensing grew 24%, which.

Kevin Hogan: Which was led by casualty in Western World.

Kevin Hogan: Our excess casualty line grew 46% and our captive solutions grew 20%.

Kevin Hogan: There has been meaningful commentary on the excess and surplus lines market and we continue to experience terrific fundamentals and results in Lexington, let.

Kevin Hogan: Let me provide a few examples.

Kevin Hogan: Our submission volume was up over 50% year over year.

Kevin Hogan: Lexington delivered strong new business outperforming last year's record first quarter results.

Kevin Hogan: Across all lines.

Kevin Hogan: And retention remains strong for Lexington at 78%.

Peter Salvatore Zaffino: Shifting to North America retail property, net premiums written were negative 120 million in the quarter, driven by the first quarter reinsurance purchase, and had over a 600 basis point impact on the first quarter net premiums written growth for North America commercial compared to the prior year. North America Financial Alliance declined 4% year over year.

Kevin Hogan: Shifting to North America retail property net premiums written were negative 120 million in the quarter driven by first quarter reinsurance purchased at.

Kevin Hogan: They had over a 600 basis point impact on the first quarter net premiums written growth for North America commercial compared to prior year.

Kevin Hogan: North America financial lines declined 4% year over year.

Peter Salvatore Zaffino: In prior quarters, we provided meaningful commentary on the dynamics within financial lines, so I will not go through that again. It's been a challenging market environment with continued headwinds on race. Having said that, we continue to believe our portfolio is strong and we remain disciplined. Sabra will give more detail in her prepared remarks.

Kevin Hogan: In prior quarters, we provided meaningful commentary on the dynamics within financial lines. So I will not go through that again.

Kevin Hogan: It's been a challenging market environment with continued headwinds on rate.

Kevin Hogan: Having said that we continue to believe our portfolio is strong and we remain disciplined.

Kevin Hogan: Favorable will give more detail in her prepared remarks.

Peter Salvatore Zaffino: In international commercial, net premiums written were flat for the quarter, international property grew 23%, and Talbot grew 18%. This was offset by a decline in the global specialty business of slightly over 10%, due to some top-line weakness in energy and the effects of the reinsurance restructuring. Also, we had a 5% decline in international financial loss. Now turning to the combined ratio.

Peter Salvatore Zaffino: In international commercial, net premiums written were flat for the quarter, international property grew 23%, and Talbot grew 18%. This was offset by a decline in our global specialty business of slightly over 10%, due to some top-line weakness in energy and the effects of the reinsurance restructuring. Also, we had a 5% decline in international financial loss. Now turning to the combined ratio.

Kevin Hogan: And international commercial net premiums written were flat for the quarter International property grew 23% and Talbot grew 18%.

Kevin Hogan: This was offset by a decline in our global specialty business a slightly over 10%.

Kevin Hogan: Due to some top line weakness in energy and the effects of the reinsurance restructuring.

Kevin Hogan: Also we had a 5% decline in international financial lines.

Kevin Hogan: Now turning to the combined ratio.

Peter Salvatore Zaffino: Our global commercial business in the first quarter had an outstanding result with an 84.4% accident-year combined ratio, excluding catastrophes, a 150 basis point improvement year over year. The accident-year combined ratio, including catastrophes, was 86.6%, a 500 basis point improvement year over year. This was led by International Commercial, which on a comparable basis had an 82.8% accident year combined ratio, excluding catastrophe, which is a 140 basis point improvement year over year, and an 83.5% accident year combined ratio, including catastrophe, which is a 770 basis point improvement year over year.

Peter Salvatore Zaffino: Our global commercial business in the first quarter had an outstanding result with an 84.4% accident-year combined ratio, excluding catastrophes, a 150 basis point improvement year over year. The accident-year combined ratio, including catastrophes, was 86.6%, a 500 basis point improvement year over year. This was led by International Commercial, which on a comparable basis had an 82.8% accident year combined ratio excluding catastrophe, which is a 140 basis point improvement year over year, and an 83.5% accident year combined ratio, including catastrophe, which is a 770 basis point improvement year over year.

Kevin Hogan: Our global commercial business in the first quarter had an outstanding result, with an 84, 4% accident year combined ratio, excluding catastrophe, a 150 basis point improvement year over year.

Kevin Hogan: The accident year combined ratio, including catastrophe was 86, 6%, a 500 basis point improvement year over year.

Kevin Hogan: This was led by international commercial.

Kevin Hogan: Which on a comparable basis had an 82, 8% accident year combined ratio excluding catastrophe.

Kevin Hogan: Would you say 140 basis point improvement year over year and.

Kevin Hogan: And an 83, 5% accident year combined ratio, including catastrophe, which is a 770 basis point improvement year over year.

Peter Salvatore Zaffino: North America Commercial also had outstanding results with an 85.9% accident-year combined ratio excluding catastrophe, which is a 180 basis point improvement year over year, and a 89.5% action-year combined ratio, including catastrophe, which is a 260 basis point improvement year over year. These results were simply outstanding and are a testament to our commitment and culture of underwriting excellence. Shifting now to global personal insurance, net premiums written were flat to the prior year.

Peter Salvatore Zaffino: North America Commercial also had outstanding results with an 85.9% accident year combined ratio excluding catastrophe, which is a 180 basis point improvement year over year, and a 89.5% action year combined ratio, including catastrophe, which is a 260 basis point improvement year over year. These results were simply outstanding and are a testament to our commitment and culture of underwriting excellence. Shifting now to global personal insurance, net premiums written were flat to the prior year.

Kevin Hogan: North America commercial also had an outstanding result, with an 85, 9% accident year combined ratio excluding catastrophe.

Kevin Hogan: Which is a 180 basis point improvement year over year.

Kevin Hogan: And 89, 5% accident, your combined ratio, including catastrophe, which is a 260 basis point improvement year over year.

Kevin Hogan: These results were simply outstanding and are a testament to our commitment and culture of underwriting excellence.

Kevin Hogan: Shifting now to global personal insurance net premiums written were flat to prior year.

Peter Salvatore Zaffino: We had modest growth in personal auto and individual travel and reductions in high net worth driven largely by reinsurance. And Accident and Health, largely driven by two non-renewals in China, is part of our focus on portfolio improvements in our accident and health business. North America Personal had a 97.7% accident year combined ratio, excluding catastrophe.

Kevin Hogan: We had modest growth in personal auto and individual travel and reductions in high net worth driven largely by reinsurance and accident and health largely driven by two non renewals in China as part of our focus on portfolio improvements and our accident health business.

Kevin Hogan: North America personal had a 97, 7% accident year combined ratio. Excluding catastrophe. This is a 990 basis point improvement year over year, and a 101, 6% accident year combined ratio, including catastrophe, which is an 870 basis point improvement year over year.

Peter Salvatore Zaffino: This is a 990 basis point improvement year over year and a 101.6% accident-year combined ratio, including catastrophe, which is an 870 basis point improvement year over year. As we discussed last year, we expect 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. International Personal Insurance had a 96.8% accident year combined ratio excluding catastrophe, which increased 90 basis points year over year, and a 96.8% accident year combined ratio including catastrophe, which is a 20 basis point improvement year over year. Overall, I'm very pleased with the financial performance of General Insurance, which delivered another excellent quarter. Our reinsurance decisions in the fourth quarter had an impact on net premium rates.

Kevin Hogan: As we discussed last year, we expect a material financial improvement in 2024.

Kevin Hogan: That will be driven by higher earned premiums and a lower loss ratio from the high net worth business.

Kevin Hogan: We saw this manifest in the first quarter and expect this improvement to continue throughout 2024.

Kevin Hogan: International personal insurance had a 96, 8% accident year combined ratio, excluding catastrophe, which increased 90 basis points year over year, and a 96, 8% accident year combined ratio included catastrophe, which is a 20 basis point improvement year over year.

Kevin Hogan: Overall, I'm very pleased with the financial performance of General insurance, which delivered another excellent quarter.

Kevin Hogan: Our reinsurance decisions in the first quarter had an impact on net premiums written.

Peter Salvatore Zaffino: As we've discussed over the past several years, our reinsurance partnerships and global treaty structures have been purposeful. Our objective has been to deliver improved underwriting profitability and evolve our business portfolio to be appropriately diversified to deliver consistent results throughout the market cycle. We believe this strategy has provided sustained value to our clients while also delivering improved risk-adjusted returns. It has significantly repositioned AIG, especially as we prepare to deconsolidate from Cor

Kevin Hogan: As we've discussed over the past several years, our reinsurance partnerships and global treaty structures have been purposeful.

Kevin Hogan: Our objective has been to deliver improved underwriting profitability and evolve our business portfolio to be appropriately diversified to deliver consistent results throughout the market cycle.

Kevin Hogan: We believe this strategy has provided sustained value to our clients, while also delivering improved risk adjusted returns.

Kevin Hogan: It has significantly repositioned AIG, especially as we prepare to be consolidated from corbridge.

Peter Salvatore Zaffino: Our goals with our reinsurance purchasing have been to preserve and optimize capital and enhance the quality of earnings through active management of the volatility of our underwriting. This deliberate approach to reinsurance has helped position AIG with a very strong balance sheet and has given us the flexibility to add exposure where risk-adjusted returns are very attractive, while also moderating volatility in our underwriting. As a result of our divestiture of Balladus Re combined with the reduction in gross limits in property through our underwriting strategy, we have reduced our PMLs and created a meaningful capacity to increase our property writings throughout our global platform should they meet our expected return without going through each return period, by peril and region.

Kevin Hogan: Our goals with our reinsurance purchasing have been to preserve and optimize capital and enhance the quality of earnings through active management of the volatility of our underwriting results.

Kevin Hogan: This deliberate approach to reinsurance has helped position AIG with a very strong balance sheet and has given us the flexibility to add exposure where risk adjusted returns are very attractive while also moderating volatility in our underwriting results.

Kevin Hogan: As a result of our divestiture of Validus re combined with the reduction in gross limits and property through our underwriting strategy, we have reduced our pms and creating meaningful capacity to increase our property writings throughout our global platform should they meet our expected returns.

Kevin Hogan: Without going through each return period by apparel and region.

Peter Salvatore Zaffino: Our key zone PMLs, on average, have decreased by over 40% compared to the first quarter of 2023, which provides a considerable aggregate for future growth while appropriately managing the exposures we're assuming. Our reinsurance purchasing is deliberately concentrated at January 1.

Kevin Hogan: Our keys on Pms on average have decreased by over 40% compared to the first quarter of 2023, which provides considerable aggregate for future growth while appropriately managing the exposures were assuming.

Kevin Hogan: Our reinsurance purchasing is deliberately concentrated at January one as a result any changes in purchasing tend to be more pronounced in the first quarter reporting a net premiums written.

Peter Salvatore Zaffino: As a result, any changes in purchasing tend to be more pronounced in the first quarter reporting of net premiums risk. In January of 2024, we also made some changes related to the allocation of catastrophe costs among the business. So that catastrophe costs are more accurately reflected in price, Historically, some of these costs have been shared with Balladus Reek. We reallocated PMLs and the catastrophe cost to where we believe the most attractive opportunities for growth existed in our portfolio. It's worth noting that when considering our property catastrophe placement, we believe we have the lowest attachment point of our peer group.

Peter Salvatore Zaffino: As a result, any changes in purchasing tend to be more pronounced in the first quarter reporting of net premiums risk. In January of 2024, we also made some changes related to the allocation of catastrophe costs among the business units so that catastrophe costs are more accurately reflected in price. Historically, some of these costs have been shared with Balladus Reek. We reallocated PMLs and the catastrophe cost to where we believe the most attractive opportunities for growth existed in our portfolio. It's worth noting that when considering our property catastrophe placement, we believe we have the lowest attachment point of our peer group.

Kevin Hogan: In January of 2024, we also made some changes related to the allocation of the catastrophe costs among the businesses, so that catastrophe costs or more accurately reflected in pricing.

Kevin Hogan: Historically some of these costs have been shared with Validus re.

Kevin Hogan: We reallocated pms in the catastrophe costs to where we believe the most attractive opportunities for growth existed in our portfolio.

Kevin Hogan: It's worth noting when considering our property catastrophe placement, we believe we have the lowest attachment point of our peer group.

Peter Salvatore Zaffino: Over time, we will have the balance sheet and perhaps a risk appetite to take more net on our catastrophe program post deconsolidation and subject to market conditions. As a point of reference, if we chose to raise our catastrophe attachment point to $500 million worldwide, our attachment point would likely remain the lowest among our peer groups, with an 11-11 attachment point in North America wind and a 119 attachment point in North America earthquake based on today's exposure.

Peter Salvatore Zaffino: Over time, we will have the balance sheet and perhaps a risk appetite to take more net on our catastrophe program post deconsolidation and subject to market conditions. As a point of reference, if we chose to raise our catastrophe attachment point to $500 million worldwide, our attachment point would likely remain the lowest among our peer groups, with a 1-11 attachment point in North America wind and a 1-19 attachment point in North America earthquake based on today's exposure.

Kevin Hogan: Overtime, we have the balance sheet and perhaps the risk appetite to take more net on our catastrophe program post deconsolidation and subject to market conditions as a point of reference.

Kevin Hogan: If we chose to raise our catastrophe attachment point to $500 million worldwide. Our attachment point would likely remain the lowest among our peer group with a 111 attachment point in North America wind and a 119 attachment in North America earthquake.

Kevin Hogan: On today's exposure.

Peter Salvatore Zaffino: Importantly, our net premiums written in commercial would have been 15% greater in the first quarter if we elected to have a $500 million attachment point across our global portfolio. Our earnings potential is significant, and when combined with the strength of our balance sheet, it will provide us with the flexibility to continuously evaluate and refine our strategic reinsurance purchase as we enter 2025. Turning to life and retirement, as I noted earlier, the business continued to produce strong results in the first quarter.

Kevin Hogan: Importantly, our net premiums written in commercial would have been 15% greater than the first quarter. If we had elected to have a $500 million attachment point across our global portfolio.

Kevin Hogan: Our earnings potential is significant and when combined with the strength of our balance sheet. It will provide us with the flexibility to continuously evaluate and refine our strategic reinsurance purchasing as we enter 2025.

Kevin Hogan: Turning to life and retirement as I noted earlier the business continue to produce strong results in the first quarter and April corbridge completed their corbridge forward restructuring.

Peter Salvatore Zaffino: In April, CoreBridge completed their forward restructure. $400 million of savings have been actioned or contracted, and they expect to realize the vast majority of the savings by the end of 2024 at a cost to achieve of $300 million. Corbridge repurchased approximately $240 million of common shares during the first quarter.

Kevin Hogan: $400 million of savings has been action or contracted and they expect to realize the vast majority of the savings by the end of 2024 at a cost to achieve a $300 million.

Kevin Hogan: Corbridge repurchased approximately $240 million of common shares during the first quarter, they have repurchased $370 million of common shares year to date.

Peter Salvatore Zaffino: They have repurchased $370 million of common shares year to date. Corbridge ended the quarter with a strong balance sheet with parent liquidity of $1.7 billion. This week, the Corbridge Board of Directors approved a share buyback authorization of $2 billion, which reflects their stated commitment to delivering a 60 to 65% payout ratio to shareholders subject to market conditions.

Peter Salvatore Zaffino: They have repurchased 370 million common shares year to date. Corbridge ended the quarter with a strong balance sheet with parent liquidity of $1.7 billion. This week, the Corbridge Board of Directors approved a share buyback authorization of $2 billion, which reflects their stated commitment to delivering a 60 to 65% payout ratio to shareholders subject to market conditions. Turning to other operations, we have made significant progress towards our future state operating model. Adjusted pre-tax loss from other operations in the quarter, including life and retirement, was $408 million, a 17% improvement year-over-year.

Kevin Hogan: Corbridge ended the quarter with a strong balance sheet with parent liquidity of $1 7 billion.

Kevin Hogan: This week, the Corbridge board of directors approved a share buyback authorization of $2 billion.

Kevin Hogan: Which reflects their stated commitment to delivering a $60 to 65% payout ratio to shareholders subject to market conditions.

Peter Salvatore Zaffino: Turning to other operations, we have made significant progress towards our future state operating model. Adjusted pre-tax loss from other operations in the quarter, including life and retirement, was $408 million, a 17% improvement year-over-year. The improvement was primarily attributable to lower general operating expense, higher short-term investment income, and lower interest expense at AIG due to the Debt Reduction Act. We expect our future state parent expenses to be in the range of $325 to $350 million by year-end 2024.

Kevin Hogan: Turning to other operations.

Kevin Hogan: We have made significant progress towards our future state operating model.

Kevin Hogan: Adjusted pre tax loss from other operations in the quarter, including life and retirement was $408 million, a 17% improvement year over year the.

Peter Salvatore Zaffino: The improvement was primarily attributable to lower general operating expense, higher short-term investment income, and lower interest expense at AIG due to the Debt Reduction Act. We expect our future state parent expenses to be in the range of $325 to $350 million by year-end 2024.

Kevin Hogan: The improvement was primarily attributable to lower general operating expense higher short term investment income.

Kevin Hogan: And lower interest expense at AIG due to debt reduction actions.

Kevin Hogan: We expect our future state parent expenses to be in the range of $325 million to $350 million by year end 2024. After deconsolidation, we intend to use one to one 5% of net premiums earned as a benchmark of total parent expenses in the future.

Peter Salvatore Zaffino: After deconsolidation, we intend to use 1 to 1.5% of net premiums earned as a benchmark of total parent expenses in the future. Turning to capital management, in the first quarter, we continued to execute on our balanced capital management strategy. Over the past couple of years, we have significantly strengthened our balance sheet by making key decisions that have increased our financial flexibility while always planning for the long term, which has allowed us to accelerate the execution of our strategy and unlock meaningful value for AIG shareholders, along with establishing appropriate debt capital structures for AIG and Corbridge and diligently executing on AIG's capital management priorities. We have also completed over $40 billion of capital market transactions since 2022.

Peter Salvatore Zaffino: After deconsolidation, we intend to use 1 to 1.5% of net premiums earned as a benchmark of total parent expenses in the future. Turning to capital management, in the first quarter, we continued to execute on our balanced capital management strategy. Over the past couple of years, we have significantly strengthened our balance sheet by making key decisions that have increased our financial flexibility while always planning for the long term, which has allowed us to accelerate the execution of our strategy and unlock meaningful value for AIG shareholders, along with establishing appropriate debt capital structures for AIG in Corbridge and diligently executing on AIG's capital management priorities. We have also completed over $40 billion of capital market transactions since 2022.

Kevin Hogan: Turning to capital management in the first quarter, we continued to execute on our balanced capital management strategy.

Kevin Hogan: Over the past couple of years, we have significantly strengthened our balance sheet by making key decisions that have increased our financial flexibility, while always planning for the long term, which has allowed us to accelerate the execution of our strategy and unlock meaningful value for AIG shareholders.

Kevin Hogan: Along with establishing appropriate debt capital structures for AIG, and corbridge and diligently executing on Aig's capital management priorities.

Kevin Hogan: We have also completed over $40 billion of capital market transactions since 2022.

Peter Salvatore Zaffino: We have been very disciplined in the execution of the components of our capital management strategy that we first outlined in 2020. As a reminder, our objectives were, to maintain very strong insurance company capital levels to support organic growth and a steady source of operating subsidiary dividends to service parent company needs, to reduce our total debt outstanding and improve our leverage ratios, providing a well-structured and well-laddered debt portfolio with no outsized amounts due in any given year, particularly over the next five years, to return excess capital to shareholders in the form of share repurchases and dividends, to increase our dividend as our earnings and financial flexibility improved, and to maintain a strong parent liquidity position.

Kevin Hogan: We have been very disciplined in the execution of the components of our capital management strategy that we first outlined in 2022.

Kevin Hogan: As a reminder, our objectives were.

Kevin Hogan: To maintain a very strong insurance company capital levels to support organic growth and a steady source of operating subsidiary dividends to service parent company needs.

Kevin Hogan: To reduce our total debt outstanding and improve our leverage ratios, providing a well structured and well latter debt portfolio with no outsized amounts due in any given year, particularly over the next five years.

Kevin Hogan: To return excess capital to shareholders in the form of share repurchases and dividends.

Kevin Hogan: To increase our dividend as our earnings and financial flexibility improved.

Kevin Hogan: And to maintain a strong parent liquidity position.

Peter Salvatore Zaffino: All of our Tier 1 insurance company subsidiaries are at or above their target capital ranges and have the ability to support meaningful growth without additional capital contribution. At current profitability levels, we have approximately $3 billion of run-rate dividend capacity from our global general insurance subsidiaries, with approximately $2 billion attributable to the U.S. General Insurance Company's dividend capacity. We have increased the U.S. General Insurance Company dividend capacity by approximately 400% over the last three years. This reflects a significant increase from 2021 when it was $550 million and in 2022 when it was $1.4 billion. I am looking forward to it.

Peter Salvatore Zaffino: All of our Tier 1 insurance company subsidiaries are at or above their target capital ranges and have the ability to support meaningful growth without additional capital contribution. At current profitability levels, we have approximately $3 billion of run-rate dividend capacity from our global general insurance subsidiaries, with approximately $2 billion attributable to the U.S. General Insurance Company's dividend capacity. We have increased the U.S. General Insurance Company dividend capacity by approximately 400% over the last three years. This reflects a significant increase from 2021, when it was 550 million, and in 2022, when it was 1.4 billion. I am looking forward to it.

Kevin Hogan: All of our tier one insurance company subsidiaries are at or above their target capital ranges and have the ability to support meaningful growth without additional capital contributions.

Kevin Hogan: At current profitability levels, we had approximately $3 billion of run rate dividend capacity from our global General insurance subsidiaries.

Kevin Hogan: With approximately $2 billion attributable to the U S General insurance company's dividend capacity.

Kevin Hogan: We have increased the U S General insurance company dividend capacity by approximately 400% over the last three years.

Kevin Hogan: This reflects a significant increase from 2021 when it was $550 million in 2022, when it was $1 4 billion.

Kevin Hogan: Looking forward.

Peter Salvatore Zaffino: We expect to continue positioning AIG with maximum capital flexibility for growth, including reviewing our reinsurance over time and considering compelling and strategic inorganic growth opportunities, should they exist. In addition to strong insurance company capitalization, we've continued to significantly reduce our overall debt. Our outstanding debt is now approximately $9.8 billion, a reduction of over $12 billion since the end of 2021, which has been a remarkable result for AIG.

Kevin Hogan: We expect to continue positioning AIG with maximum capital flexibility for growth, including reviewing our reinsurance over time, and considering compelling and strategic inorganic growth opportunities should they exist.

Kevin Hogan: In addition to strong insurance company capitalization, we've continued to significantly reduce our overall debt.

Kevin Hogan: Outstanding debt is now approximately $9 8 billion a.

Kevin Hogan: <unk> of over $12 billion since the end of 2021, which has been a remarkable result for AIG.

Peter Salvatore Zaffino: We have previously provided guidance that we're targeting a 20 to 25% total debt to capital ratio, and we expect to be in the 15 to 20% range upon deconsolidation. While we may do additional work on maturities, we would not expect that to take priority over share repurchase. Since 2022, we've increased our focus on share repurchase activities. We completed over $5 billion of repurchases in 2022 and approximately $3 billion in 2023. 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 Corbridge sell-downs and market conditions.

Kevin Hogan: We have previously provided guidance that we're targeting a 20% to 25% total debt to capital ratio.

Kevin Hogan: And we expect to be in the 15% to 20% range upon deconsolidation.

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

Kevin Hogan: Since 2022, we've increased our focus on share repurchase activities.

Kevin Hogan: We completed over $5 billion of repurchases in 2022, and approximately $3 billion in 2023.

Kevin Hogan: 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 corbridge sell downs and market conditions.

Peter Salvatore Zaffino: All of the expected activity in 2024 and 2025 will be covered by the $10 billion share authorization that we announced yesterday. For the balance of 2024, we expect to be able to repurchase about $1.5 billion of common stock a quarter, depending on excess parent liquidity levels, including future core bridge sale proceeds, general insurance dividends, and market conditions, and based on the current stock price. We would expect this to get us close to the higher end of our target share count range of 600 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.

Kevin Hogan: All of the expected activity in 2024, and 2025 will be covered by the $10 billion share authorization that we announced yesterday.

Kevin Hogan: For the balance of 2024, we expect to be able to repurchase about $1 5 billion of common stock a quarter, depending on excess parent liquidity levels, including future Corbridge sale proceeds general insurance dividends and market conditions.

Kevin Hogan: And based on the current stock price.

Kevin Hogan: Would expect this to get us closer to the higher end of our target share count range of 600 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.

Peter Salvatore Zaffino: Furthermore, based on this outlook, and depending on the stock price and market conditions, we would expect to be between 550 and 600 million shares outstanding by year-end 2025. Turning to our dividend, the AIG Board of Directors recently increased the cash dividend of 40 cents per share on AIG common stock by 11%, the second consecutive year with an increase of more than 10%.

Peter Salvatore Zaffino: Furthermore, based on this outlook, and depending on the stock price and market conditions, we would expect to be between 550 and 600 million shares outstanding by year-end 2025. Turning to our dividend, the AIG Border Directors recently increased the cash dividend to 40 cents per share on AIG common stock, up 11%, the second consecutive year with an increase of more than 10%.

Kevin Hogan: Furthermore, based on this outlook and depending on the stock price and market conditions, we would expect to be between $550 and 600 million shares outstanding by year end 2025.

Kevin Hogan: Turning to our dividend the AIG board of directors recently increased the cash dividend of <unk> 40 per share on AIG common stock up 11% the second consecutive year with an increase of more than 10%.

Peter Salvatore Zaffino: I could not be more pleased with our progress. We remain confident in our ability to deliver while continuing the positive momentum in our financial performance. We remain committed to delivering an adjusted 10% plus ROCE post-deconsolidation of CoreBridge. For the first quarter, we achieved a 9.3% adjusted ROCE and a 13.3% adjusted ROCE in General Insurance. Contributing to ROCE will be AIG Next, which will focus on achieving an expense base that will generate additional savings for AIG while reducing complexity throughout our organization and simplifying how we operate.

Kevin Hogan: I could not be more pleased with our progress we remain confident in our ability to deliver while continuing the positive momentum in our financial performance.

Kevin Hogan: We remain committed to delivering an adjusted 10% plus <unk> post deconsolidation of corbridge for the first quarter, we achieved a nine 3% adjusted <unk> and a 13, 3% adjusted RC and general insurance.

Kevin Hogan: Contributing to <unk> will be AIG next.

Kevin Hogan: Which will focus on achieving an expense base that will generate additional savings for AIG, while reducing complexity throughout our organization and simplifying how we operate.

Peter Salvatore Zaffino: AIG Next will create clarity in our operating structure, including aligning our underwriting and claims organizations with our operations and functions, while defining our parent company of the future. This is a key objective as we weave AIG together to be a less complex, more effective, and leaner company with the appropriate infrastructure and capabilities for the business we will be post-deconsolidation. AIG Next has clearly defined workstreams governed by a very experienced, centralized team with significant experience in transformations in company design reporting directly to me.

Kevin Hogan: AIG next will create clarity in our operating structure, including aligning our underwriting and claims organizations with our operations and functions, while defining our parent company of the future.

Kevin Hogan: This is a key objective as we we've AIG together.

Kevin Hogan: To be a less complex more effective and leaner company with the appropriate infrastructure and capabilities for the business, we will be post deconsolidation.

Kevin Hogan: AIG next has clearly defined work streams governed by a very experienced centralized team.

Kevin Hogan: With significant experience in transformations and company design reporting directly to me.

Peter Salvatore Zaffino: 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. Of the $500 million in run rate savings, we expect $350 million to be actioned in 2024, which is an increase from the guidance we have provided in the past, and the balance will be actioned within 2025, with a cost to achieve of $500 million. We've made meaningful progress on AIG Next across multiple workstreams.

Kevin Hogan: 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.

Kevin Hogan: Of the $500 million in run rate savings, we expect $350 million to be action in 2024, which is an increase of the guidance. We have provided in the past and the balance will be action within 2025 with the cost to achieve a $500 million.

Kevin Hogan: To date.

Kevin Hogan: We've made meaningful progress on AIG next across multiple work streams.

Peter Salvatore Zaffino: In April, we announced a voluntary early retirement program available to colleagues in the United States who meet the eligibility criteria. Eligible participants will have the opportunity to accelerate their retirement from AIG with enhanced retirement benefits. The population of eligible participants represents approximately 25% of our U.S. workforce. About half of the eligible participants are located in the high-cost New York metropolitan area.

Kevin Hogan: In April we announced a voluntary early retirement program available to colleagues in the United States, who meet the eligibility criteria.

Kevin Hogan: Eligible participants will have the opportunity to accelerate their retirement from AIG with enhanced retirement benefits.

Kevin Hogan: The population of eligible participants represents approximately 25% of our U S workforce.

Kevin Hogan: About half of the eligible participants are located in the high cost New York Metropolitan area.

Peter Salvatore Zaffino: We are anticipating a 50% take-up rate, which would result in approximately $225 million of one-time costs and a net run rate benefit of approximately $150 million, after reinvestment in the skills and capabilities we need for the future. The numbers I have provided for our early retirement program are included in the total numbers I provided for AIG Next. In summary, I'm very pleased with our overall performance as we start 2024. As I said in my recent letter to shareholders, our ability to execute continues to be one of the company's best. We have accomplished a significant amount in the past several years in order to position AIG for the future.

Kevin Hogan: We are anticipating a 50% take up rate.

Kevin Hogan: Which would result in approximately $225 million of one time cost and a net run rate benefit of approximately $150 million after reinvestment for the skills and capabilities, we need for the future.

Kevin Hogan: The numbers I have provided for our early retirement program are included in the total numbers I provided for AIG next.

Kevin Hogan: In summary, I'm very pleased with our overall performance as we start 2024.

Kevin Hogan: As I said in my recent letter to shareholders, our ability to execute continues to be one of the Companys best attributes.

Kevin Hogan: We have accomplished a significant amount in the past several years in order to position AIG for the future.

Peter Salvatore Zaffino: And we have continued to deliver in the first quarter, which will enable us to achieve our objectives in 2024 and beyond. I am confident that we will continue to uphold our commitment to achieving underwriting excellence and high quality earnings over the long term, benefiting all of our stakeholders as we continue to simplify and streamline our business and create the AIG of tomorrow. With that, I'll turn the call over to Sabra. Thank you, Peter.

Kevin Hogan: And we have continued to deliver in the first quarter, which will enable us to achieve our objectives in 2024 and beyond.

Kevin Hogan: I am confident that we will continue to uphold our commitment to achieving underwriting excellence and high quality earnings over the long term benefiting all of our stakeholders as we continue to simplify and streamline our business and create the AIG of tomorrow.

Kevin Hogan: That I will turn the call over to Sabre.

Sabra Rose Purtill: This morning, I will provide details on AIG's first quarter results, including general insurance, investment income, and life in retirement, and a balance sheet update. First quarter 2024 adjusted after tax income attributable to AIG common shareholders or AATI was $1.2 billion flat to last year due to the reduction in our ownership of Corbridge from 77.3% to 52.7% at the end of this, General Insurance Adjusted Pre-Tax Income, or APTI, increased $110 million year-over-year driven by higher underwriting and net investment in, The prior year quarter included a PTI of approximately $175 million dollars from Validus Re and CropRisk services, on a comparable basis, excluding the divested business.

Sabre: Thank you Peter this morning, I will provide details on Aig's first quarter results, including general insurance investment income and life and retirement and a balance sheet update.

Sabre: First quarter 2024, adjusted after tax income attributable to AIG common shareholders or ATI was $1 2 billion flat to last year due to the reduction in our ownership of corbridge from 77, 3% to 52, 7% at the end of this quarter.

Sabre: General insurance adjusted pre tax income or <unk> increased to $110 million year over year, driven by higher underwriting and net investment income. The prior year quarter included a DTI of approximately $175 million from Validus re and crop risk services on a comparable basis, excluding the divested businesses.

Sabra Rose Purtill: General Insurance APTI was up about $285 million. As Peter noted, first quarter general insurance underwriting income was $596 million, of $94 million from the prior year quarter. On a comparable basis, underwriting income rose $239 million year-over-year.

Sabre: General insurance <unk> was up about $285 million.

Sabre: As Peter noted first quarter General insurance underwriting income was $596 million of $94 million from the prior year quarter on a comparable basis underwriting income rose $239 million year over year.

Sabra Rose Purtill: International Commercial Lines was the primary contributor to higher underwriting profitability with a $175 million increase in underwriting. North America Commercial Line's underwriting income was down $95 million from the prior year quarter, as reported, but up $35 million on a comparable basis. Underwriting income includes catastrophe losses of $107 million in the quarter, or 190 basis points on the loss ratio, down from $265 million, or 420 basis points last. Prior year development this quarter was a favorable $34 million compared to a favorable $68 million in the prior year quarter. This quarter's development was solely due to the amortization of the deferred gain on the adverse development cover, which is recalculated each year based on prior year experience.

Sabre: International commercial lines was the primary contributor to higher underwriting profitability with a $175 million increase in underwriting income.

Sabre: North America commercial lines underwriting income was down $95 million from the prior year quarter as reported but up $35 million on a comparable basis.

Sabre: Underwriting income includes catastrophe losses of $107 million in the quarter or 190 basis points on the loss ratio down from $265 million or 420 basis points last year.

Sabre: Prior year development this quarter was a favorable $34 million compared to a favorable $68 million in the prior year quarter. This.

Sabre: This quarter's development was solely from the amortization of the deferred gain on the adverse development cover which is recalculated each year based on prior year experience for 2024, the amortization gain will be $34 million each quarter compared to $41 million a quarter last year.

Sabra Rose Purtill: For 2024, the amortization gain will be $34 million each quarter compared to $41 million a quarter last year. Turning to underwriting ratios, the general insurance calendar year combined ratio was 89.8% this quarter, a 210 basis point improvement from the prior year quarter and a 380 basis point improvement on accomplishments. We provided additional data on page 26 of the financial supplement on the impact of the divestitures on 2023 North American commercial combined

Sabre: Turning to underwriting ratios the general insurance calendar year combined ratio was 89, 8% this quarter, a 210 basis point improvement from the prior year quarter, and a 380 basis point improvement on a comparable basis.

Sabre: We provided additional data on page 26 of the financial supplement on the impact of the divestitures in 2023, North American commercial combined ratios.

Sabra Rose Purtill: The accident year combined ratio, excluding catastrophes, was 88.4%, a 30 basis point improvement over the prior year quarter and a 160 basis point improvement on a comparable basis. The accident year loss ratio adjusted for catastrophes was 56.6% this quarter, 10 basis points better than the first quarter of 2023, as reported, and 70 basis points better on a comparable basis. This improvement reflects continued earnings of rate above lost cost trend and better underwriting risk selection, particularly in global commercial lines. The expense ratio for the quarter was 31.8%, down 20 basis points from the prior year quarter as reported, with a $43 million reduction in general operating expenses.

Sabre: The accident year combined ratio ex catastrophes was 88, 4%, a 30 basis point improvement over the prior year quarter, and 160 basis point improvement on a comparable basis the accident year loss ratio adjusted for Catastrophes was 56, 6% this quarter 10 basis points better than the first quarter of <unk>.

Sabre: 2023, as reported and 70 basis points better on a comparable basis. This improvement reflects continued earn in of rate above loss cost trend and better underwriting and risk selection, particularly in global commercial lines.

Sabre: The expense ratio for the quarter was 31, 8% down 20 basis points from the prior year quarter as reported with a $43 million reduction in general operating expenses on a comparable basis. The expense ratio improved 90 basis points with 10 basis points from the acquisition ratio and 80 basis points from.

Sabra Rose Purtill: On a comparable basis, the expense ratio improved 90 basis points, with 10 basis points from the acquisition ratio and 80 basis points from the general operating expense ratio, reflecting continued expense discipline as general operating expenses rose only $6 million. As Peter covered general insurance premium growth, I will focus on commercial lines new business, renewal rates, loss trends, and retention, as well as reserves. New business production and global commercial remain strong. In North America, new business was almost $450 million and balanced across all lines with excellent performance from Lexar.

Sabre: The general operating expense ratio, reflecting continued expense discipline as general operating expenses rose only $6 million.

Sabra Rose Purtill: International commercial new business levels were very good, with over $500 million in the quarter, led by Talbot, property, and casualty, offset by lower new business in energy and financial lines. In North America commercial, overall rates, excluding workers' compensation, increased 5% in the quarter, with exposure adding 2%, for overall pricing of 7%, which is above lost cost. [inaudible] North America commercial rate increases reflect strengthening pricing trends in casualty, including Lexington casualty, which was up 11%, Lexington health care, up 15%, and excess casualty, up 16%.

Speaker Change: As Peter covered general insurance premium growth I will focus on commercial lines, new business renewal rate loss trends and retention as well as reserves.

Speaker Change: New business production and global commercial remains strong in North America, New business was almost $450 million and balanced across all lines with excellent performance from Lexington.

Speaker Change: International commercial new business levels were very good with over $500 million in the quarter led by Talbot property and casualty offset by lower new business in energy and financial lines.

Speaker Change: In North America commercial overall rate, excluding workers' compensation increased 5% in the quarter with exposure, adding 2% for overall pricing of 7%, which is above loss cost trend.

Speaker Change: Excluding workers' comp in financial lines, North America commercial rate was up more than 8% in the quarter with exposure up 2% for overall pricing over 10% meaningfully above the loss cost trend.

Speaker Change: North America commercial rate increases reflect strengthening pricing transit casualty, including Lexington, casualty, which was up 11% Lexington, healthcare up 15% and excess casualty up 16%.

Sabra Rose Purtill: In international commercial, overall rate increased 3%, and exposure added 2% for an overall pricing increase of 5% modestly ahead of the loss cost trend. Excluding financial lines, international rate was up 5%, with overall pricing up 7% well ahead of loss cost. The rate increase was driven by property, which was up 7%, energy up 8%, and marine up 7%.

Speaker Change: In international commercial overall rate increased 3% and exposure added 2% for overall pricing increase of 5% modestly ahead of the loss cost trend excluding financial lines International rate was up 5% with overall pricing up 7% well ahead of loss cost trend the rate increase was driven.

Speaker Change: By property, which was up 7% energy up 8% and marine up 7%.

Sabra Rose Purtill: As we've discussed, financial lines is a notable exception to pricing trends. This was particularly the case in... We are taking a long-term view on financial lines and remain disciplined on risk selection, terms, and conditions, pricing, and reserving. While the rate trend has been negative in the past few quarters, in aggregate, the cumulative rate level in North American financial lines is about 50% higher than five years ago. Renewal retention has improved over the past several years and remained strong. As a reminder, we calculate renewal retention using expiring premiums, excluding the impact of renewal rate and exposure changes on the ratio.

Speaker Change: As we've discussed financial lines is a notable exception to pricing trends. This was particularly the case in excess we are taking a long term view in financial lines and remain disciplined on risk selection terms and conditions pricing and reserving.

Speaker Change: While rate trend has been negative in the past few quarters in aggregate the cumulative rate level in North America financial lines is about 50% higher than five years ago.

Speaker Change: Renewal retention has improved over the past several years and remains strong as a reminder, we calculate renewal retention using expiring premiums excluding the impact of renewal rate and exposure changes on the ratio.

Sabra Rose Purtill: Global commercial retention increased to 89 percent, stable at 88 percent in North America, and rose to 89 percent in international. Turning to reserves, I wanted to provide some background on AIG's Reserve Review Schedule for 2024 and its quarterly process. At AIG, we perform Detailed Valuation Reviews, or DVRs, on each book once a year. In DVRs, we look at lost development and trends in prior and current accident years and consider changes in our reserving factors and approaches based on emerging experience. We do not perform DVRs in the first quarter.

Speaker Change: Global commercial retention increased to 89% stable at 88% in North America, and rose to 89% and international.

Sabra Rose Purtill: In the second quarter of 2024, we will review the North America Casualty Book, including excess and primary casualty, Lexington, workers' compensation, and mass tort, comprising about $20 billion of reserves, or 44% of our total reserves. In the third quarter, we will review international commercial lines, global financial lines, commercial property, and other lines totaling about $22 billion, or 47% of our total reserves, with a balance of the DVRs completed Between DVRs, our actuarial team evaluates pricing, claims, loss trends, and reserves across the portfolio. Each quarter, we complete an actual versus expected review, or AVE, for each book.

Speaker Change: Turning to reserves I wanted to provide some background on Aig's Reserve review scheduled for 2024 and quarterly processes.

Speaker Change: At AIG, we perform detailed valuation reviews or <unk> on each book once a year in DVR as we look at loss development and trends and prior and current accident years and consider changes in our reserving factors and approaches based on emerged experience.

Speaker Change: We do not perform DVR as in the first quarter.

Speaker Change: In the second quarter of 2024, we will review the North America casualty book, including excess and primary casualty Lexington workers' compensation and mass tort, comprising about $20 billion of reserves or 44% of our total reserves in.

Speaker Change: In the third quarter, we will review international commercial lines Global financial lines commercial property and other lines totaling about $22 billion or 47% of reserves with the balance of the DVR is completed in the fourth quarter.

Speaker Change: Between Dvr's, our actuarial team evaluates pricing claims loss trends and reserves across the portfolio each quarter, we complete an actual versus expected review or <unk> for each book there.

Sabra Rose Purtill: The ADE review gives us a current look at trends and the opportunity to address issues prior to the scheduled DVR. Examples of such items include large new claims, notable changes in claims patterns or settlements, changes in attritional loss trends beyond normal ranges, or significant major events. We are aware that the industry has begun to address adverse casualty loss development and trends in the 20 to 16 to 20 to 19 accidents. On our third quarter 2023 call, Peter provided significant detail on the re-underwriting and repricing of our casualty book that we began in 2018 with an entirely new framework and approach to underwriting.

Speaker Change: The <unk> review gives us a current look at trends and the opportunity to address issues prior to the scheduled DVR.

Speaker Change: Examples of such items include large new claims notable changes in claims patterns or settlements changes in attritional loss trends beyond normal ranges or significant major events.

Speaker Change: We are aware that the industry has begun to address adverse casualty loss development and trends in the 2016 to 2019 accident years.

Speaker Change: On our third quarter 2023 call Peter provided significant detail on the re underwriting and repricing of our casualty book that we began in 2018 with an entirely new framework and approach to underwriting.

Sabra Rose Purtill: In addition, we changed our reserving assumptions on the book, and by 2021, we had increased reserves on North American casualty 2016 through 2019 accident years by over $1 billion. We also continue to refine our actuarial judgments, and in 2019, we raised the loss cost trend assumption for certain excess casualty segments to 10%. And by 2022, all excess casualty segments were at or above 10%.

Speaker Change: In addition, we changed our reserving assumptions on the book and by 2021, we had increased reserves on North American casualty 2016 through 2019 accident years by over $1 billion.

Speaker Change: We also continue to refine our actuarial judgment and in 2019.

Speaker Change: Raise the loss cost trend assumption for certain excess casualty segments to 10% and by 2022, all excess casualty segments were at or above 10%.

Sabra Rose Purtill: Our AVE reviews on North American casualties since the second quarter 2023 DVR continue to show lost experience within the range of our expectations on the 2016 to 2019 accidents. As we have previously outlined, a reserving philosophy is to react to adverse trends quickly and to allow time for favorable trends, particularly in recent accident years, to mature. We did not make any adjustments to our casualty reserves this quarter, in total or within the 2016-2019 period.

Speaker Change: Our <unk> reviews on North American casualty since the second quarter 2023, DDR continue to show loss experience within the range of our expectations in the 2016 to 2019 accident years.

Speaker Change: As we have previously outlined our reserving philosophy is to react to adverse trends quickly and to allow time for favorable trends, particularly in recent accident years to mature.

Speaker Change: We did not make any adjustments to our casualty reserves this quarter in total or within the 2016 to 2019 accident years.

Sabra Rose Purtill: AIG's reserves and balance sheet are much stronger today, and our reinsurance is much more comprehensive, helping improve our underwriting results and reduce volatility. Turning now to investment income, AIG continues to benefit from reinvestment rates on fixed maturities and loans that exceed sales and maturities, helping drive higher yields and net investment income in general insurance in life and retirement. This quarter, consolidated net investment income on an APTI basis was $3.5 billion, up 13% from the prior year quarter, and up 2% in general insurance and 16% in life and retirement.

Speaker Change: Aig's reserves and balance sheet are much stronger today, and our reinsurance is much more comprehensive helping improve our underwriting results and reduce volatility.

Speaker Change: Turning now to investment income AIG continues to benefit from reinvestment rates in fixed maturities and loans that exceeded sales and maturities, helping drive higher yields and net investment income in general insurance and life and retirement.

Speaker Change: This quarter consolidated net investment income on an API basis was $3 5 billion up 13% from the prior year quarter and up 2% in general insurance and 16% in life and retirement.

Sabra Rose Purtill: General Insurance Net Investment Income Growth was negatively impacted by the sale of Alizree, which had a $5 billion portfolio. Adjusted for income on that portfolio in the prior year quarter, general insurance net investment income rose about 7% with a 9% increase in fixed maturities and loans driven by higher reinvestment. This quarter, new money rates on fixed maturities and loans averaged 5.9 percent, 150 basis points higher than the yield on sales and maturities during the quarter.

Speaker Change: General insurance net investment income growth was negatively impacted by the sale of Validus re which had a $5 billion portfolio adjusted.

Speaker Change: Adjusted for income on that portfolio in the prior year quarter General insurance net investment income rose about 7% with a 9% increase in fixed maturities and loans driven by higher reinvestment rates.

Speaker Change: This quarter, new money rates and fixed maturities and loans averaged five 9%, a 150 basis points higher than the yield on sales and maturities in the quarter. The new money rates were about 115 basis points higher in general insurance and 165 basis points higher in life and retirement.

Sabra Rose Purtill: The new money rates were about 115 basis points higher in general insurance and 165 basis points higher in life and retirement. The annualized yield on fixed maturities and loans, excluding calls, prepayments, and other one-time items, was 3.9% for general insurance, three basis points higher than the fourth quarter of 2023 and 44 basis points higher than the prior year quarter. The sequential yield comparison in general insurance was negatively impacted by the sale of valid estates.

Speaker Change: The annualized yield on fixed maturities in loans, excluding calls prepayments and other one time items was three 9% in general insurance three basis points higher than the fourth quarter of 2023, and 44 basis points higher than the prior year quarter. The sequential yield comparison in general insurance was negatively impacted by the sale of Validus re.

Sabra Rose Purtill: First Quarter General Insurance Alternative Investment Income was $54 million for an annualized return of 5.2% this quarter, down $41 million from the prior year. Continuing to life in retirement, sales and earnings were strong this quarter. First quarter sales remained at historically high levels with premiums and deposits of $10.7 billion driven by strong sales of fixed annuities and pension risk.

Speaker Change: First quarter General insurance alternative investment income was $54 million for an annualized return of five 2% this quarter down $41 million from the prior year quarter.

Speaker Change: Continuing to life and retirement sales and earnings were strong this quarter first quarter sales remained at historically high levels with premiums and deposits of $10 7 billion.

Speaker Change: Driven by strong sales in fixed annuities and pension risk transfer.

Sabra Rose Purtill: Life and Retirement Segment APTI was $991 million, 12% from the prior year quarter, driven by higher base portfolio spread income due to higher reinvestment rates. www.youtube.com.uk, Life and Retirement Alternative Investment Income was negative $23 million this quarter for an annualized yield of negative 1.8% due to private equity losses and very low income on hedge funds and real estate compared to break-even levels. Corbridge's total contribution to AIG's AATI, including corporate expenses, declined by approximately $100 million, or 20% over the prior year quarter due to the reduction in our. Turning to the balance sheet, book value per common share was $64.66 this quarter, down 1% from year-end 2023 and up 10% from the prior year quarter, driven mostly by the impact of interest. Adjusted book value per share was $77.79, up 1% from year-end 2023 and up 3% from the prior year quarter, reflecting the net impact of earnings, dividends, and share revenue.

Sabra Rose Purtill: Life and Retirement Segment APTI was $991 million, 12% from the prior year quarter, driven by higher base portfolio spread income due to higher reinvestment rates. [inaudible] Life and Retirement Alternative Investment Income was negative $23 million this quarter for an annualized yield of negative 1.8% due to private equity losses and very low income on hedge funds and real estate compared to break-even levels. Corbridge's total contribution to AIG's AATI, including corporate expenses, declined by approximately $100 million, or 20% over the prior year quarter due to the reduction in our. Turning to the balance sheet, book value per common share was $64.66 this quarter, down 1% from year-end 2023 and up 10% from the prior year quarter, driven mostly by the impact of interest. Adjusted book value per share was $77.79, up 1% from year-end 2023 and up 3% from the prior year quarter, reflecting the net impact of earnings, dividends, and share revenue.

Speaker Change: Life and retirement segment Atti was $991 million of 12% from the prior year quarter, driven by higher base portfolio spread income due to higher reinvestment rates.

Speaker Change: Fee income due to higher market levels, and lower general operating expenses, partially offset by lower alternative investment income.

Speaker Change: Life and retirement alternative investment income was negative $23 million this quarter for an annualized yield of negative one 8% due to private equity losses, and very low income on hedge funds and real estate compared to breakeven last year.

Speaker Change: Core bridges total contribution to Aig's, ATI, including corporate expenses declined by approximately $100 million or 20% over the prior year quarter due to the reduction in our ownership.

Speaker Change: Turning to the balance sheet book value per common share was <unk> $64.66. This quarter down 1% from year end 2023, and up 10% from the prior year quarter, driven mostly by the impact of interest rates.

Speaker Change: Adjusted book value per share was <unk> $77 79 of 1% from year end 2023, and up 3% from the prior year quarter, reflecting the net impact of earnings dividends and share repurchases.

Sabra Rose Purtill: Peter covered our capital management actions year-to-date. With respect to debt leverage, consolidated debt and preferred stock to total capital, excluding AOCI, which includes $9.4 billion of Corbridge debt, was 23.6% at March 31st and 70 basis points from year-end 2023. Excluding core bridge debt on a pro forma deconsolidated basis, AIG debt to total capital is expected to be within the new 15 to 20% debt target range To conclude, AIG delivered another excellent quarter with significant financial and operational accomplishments.

Speaker Change: Peter covered our capital management actions year to date with respect to debt leverage consolidated debt and preferred stock to total capital, excluding OCI, which includes $9 $4 billion of corporate debt was 23, 6% at March 31, and 70 basis points from year end 2023.

Speaker Change: Excluding corbridge debt on a pro forma consolidated basis AIG debt to total capital is expected to be within the new 15% to 20% that target range that Peter provided.

Speaker Change: To conclude AIG delivered another excellent quarter with significant financial and operational accomplishments in 2020 for AIG next and the deconsolidation of Corbridge will drive significant progress towards achieving our 10% plus adjusted RSC equal.

Sabra Rose Purtill: In 2024, AIG NEXT and the deconsolidation of CoreBridge will drive significant progress towards achieving our 10% plus adjusted ROCE goal. We are confident in our ability to achieve this goal and look forward to updating you on our progress. With that, I will turn the call back over to you. Thank you, Sabra.

Speaker Change: We are confident in our ability to achieve this goal and look forward to updating on our progress.

Speaker Change: With that I will turn the call back over to Peter.

Operator: And Operator, we're ready for questions. Thank you. If you'd like to ask a question, please press star 1 1. If your question has been answered and you'd like to remove yourself from the queue, please press star 1 1 again.

Peter Salvatore Zaffino: Thank you Sabra and operator, we're ready for questions.

Peter Salvatore Zaffino: Thank you if you'd like to ask a question. Please press star one one is for you.

Speaker Change: Question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Michael David Zaremski: Our first question comes from Mike Zaremski with BMO. Your line is open. Hey, thanks, and good morning.

Speaker Change: Our first question comes from Mike Zaremski with BMO. Your line is open.

Operator: Our first question comes from Mike Zaremski with BMO. Your line is open. Hey, thanks, and good morning.

Michael David Zaremski: Hey, Thanks, and good morning.

Peter Salvatore Zaffino: Looking over your prepared remarks, Peter, you used the term inorganic opportunity should it exist in reviewing reinsurance. So you also talked about the capital management application. So I guess what we should be thinking about, you know, the repurchase program is kind of a safe case, but, you know, should there be other opportunities, you might look to do something organic, or just, was there anything kind of new in there in that wording that we should, that you're trying to get us to think about? Thanks, Mike. It's a very good question.

Speaker Change: Looking.

Michael David Zaremski: Looking over the your prepared remarks, Peter you used the term inorganic opportunities should they exist and reviewing reinsurance.

Speaker Change: And you also talked about the.

Michael David Zaremski: Capital management applications, So I guess what.

Michael David Zaremski: Should we be thinking about.

Michael David Zaremski: The repurchase program.

Michael David Zaremski: Is this kind of.

Michael David Zaremski: Base case, but should there be other opportunities you might look to do something organic or was there anything kind of new in there and that wording that we should that you are trying to put together to think about.

Speaker Change: Thanks, Mike.

Speaker Change: Very good question.

Peter Salvatore Zaffino: We are going to stay, you know, very committed to the capital management structure we outlined, which is why I gave guidance on not only 24, but 25 in terms of share repurchase. I think we've been consistent, and I added in when we were more comprehensive in our description in terms of capital management that inorganic opportunities should exist, and they're compelling, which just means does it add product, does it add geography, not scale and size, but just something that does help us strategically reposition ourselves. I wouldn't want to rule that out, but it's not a priority in the short term. That's really the context of what I will provide in my prepared remarks. Okay, I understand.

Speaker Change: We are going to stay very committed to.

Speaker Change: The capital management structure, we outlined which is why I gave.

Speaker Change: <unk> San.

Speaker Change: Not only 24% to 25 in terms of share repurchases.

Speaker Change: I think we've been consistent NII.

Speaker Change: Added in when we're more comprehensive better description in terms of capital management that.

Speaker Change: Should inorganic opportunities exist and they're compelling which just means.

Speaker Change: Does it add product does it add geography not scale in size, but just something that does help us strategically reposition ourselves.

Speaker Change: Don't want to rule that out, but it's not a priority in the short term.

Speaker Change: So that's really the context of what I provided in my prepared remarks.

Peter Salvatore Zaffino: And my follow-up is just on the overall competitive environment relative to growth. So, you know, you guys have been very open, you know, given lots of pricing gauges. You've talked about financial lines being, you know, continuing to be a soft-ish marketplace. But, you know, and, you know, you've also said that, you know, you estimate pricing to an above-loss-cost trend. But, you know, is this a conducive environment for AIG to want to kind of grow opportunistically, or is it more just in certain pockets?

Speaker Change: Okay understood and my follow up is just on the overall competitive environment relative to growth. So you guys have been very open give lots of price engages you've talked about financial lines being.

Speaker Change: <unk> to be our softest marketplace.

Speaker Change: And you also said that.

Speaker Change: You estimate pricing above loss cost trend, but it is there is this.

Speaker Change: A conducive environment.

Speaker Change: For for AIG to want that kind of grow opportunistically ours or is it more just an and.

Speaker Change: Certain pockets I guess for the backdrop some of US look at the market pricing index.

Peter Salvatore Zaffino: You know, I guess, you know, just for the backdrop, some of us look at the Marsh Pricing Index, and, you know, it feels like there's, you know, my words, not a lot of gap or a narrow gap between any kind of pricing-loss trend potentially. Thanks. Yeah, thanks. It's a very good question.

Speaker Change: It feels like there is.

Speaker Change: My words, not a lot of.

Speaker Change: GAAP are narrow gap between kind of pricing last time potentially thanks.

Peter Salvatore Zaffino: Let me start on growth. You can't always look at the broker index. Again, I don't know what the Marsh index tracks, but sometimes they don't catch fee business. They don't really catch the entire sort of market, which is a market we play in. I do think it's conducive to growth.

Speaker Change: Yes. Thanks, it's a very good question, let me start on growth you can't why don't you can always look at broker index.

Speaker Change: Again, I don't know what Marsh index tracks, but sometimes they don't catch fee business I don't really catch the entire sort of market, which is a market we play in.

Speaker Change: I do think it's conducive to grow.

Peter Salvatore Zaffino: We don't look for top-line growth to sacrifice profitability, and I think we've evidenced that in this quarter, and we've evidenced it over the past couple of years that we continue to want to improve our combined ratios and look at businesses where the best risk-adjusted returns are, and so we have shaped the portfolio that way. It's hard in any one quarter to sometimes draw conclusions like you saw in terms of the gross premium written this quarter. It's really driven by three lines: specialty, financial lines, and casualty.

Speaker Change: We don't look for top line growth to sacrifice profitability and I think we evidenced that in this quarter and we've evidenced that over the past couple of years that we continue want to improve our.

Speaker Change: Combined ratios and look at businesses, where the best best risk adjusted returns are and so we have shaped the portfolio that way.

Speaker Change: Hard to any one quarter or two just sometimes draw conclusions like you saw in terms of the gross premium written in this quarter, it's really driven by three lines specialty financial lines and casualty.

Peter Salvatore Zaffino: The first quarter was impacted internationally by energy within the specialty class, but it's a great business. We're a world leader in that class, with great underwriting capabilities and global distribution, and I expect us to continue to grow that, and it's a very attractive combined ratio. So I think there's a little bit of noise. We had some captives.

Speaker Change: First quarter was impacted and international by by energy within the specialty class, but it's a great business. We're a world leader in that class, great underwriting capabilities and global distribution.

Speaker Change: And expect us to continue to grow that and it's a very attractive combined ratio. So I think there's a little bit of noise and some captives.

Peter Salvatore Zaffino: We had reinsurance impact in the quarter because we switched from some pro rata to excess of loss. I don't think I need to go into too much more detail on financial lines. It's definitely an area where we watch very carefully. Sabra provided a lot of great context in her prepared remarks.

Speaker Change: We had reinsurance impact.

Speaker Change: The quarter, because we switched from some pro rata to excess of loss.

Speaker Change: I don't think I need to go into too much more detail on financial lines.

Speaker Change: It's definitely an area, where we watch very carefully sabre provided a lot of great context in her prepared remarks, but we're going to focus on.

Peter Salvatore Zaffino: But we're going to focus on, you know, making sure we have the highest quality book. I mean, our retention, I think, spoke volumes this quarter in terms of the portfolio we like. I mean, with 89 percent in international, 88 in North America, across the board, that was tremendous, good new business. And so we definitely, you know, find opportunities. I mean, the one area I just want to just note because Lexington, you know, we talk about it every quarter because it just continues to be exceptional.

Speaker Change: Making sure we have the highest quality book I mean, our retention.

Speaker Change: I think spoke volumes this quarter in terms of.

Speaker Change: The portfolio, we like I mean, with 89% and International 88, North America across the board that was tremendous good new business and so we definitely find opportunities I mean, the one the one area I just wanted to just know because Lexington, and we've talked about every quarter because it just continues to just be exceptional but the market dynamics have changed quite a bit.

Peter Salvatore Zaffino: But, you know, the market dynamics have changed quite a bit. And, you know, when we look at excess and surplus lines, we think there are great opportunities to continue to grow, even though there may have been some slowdown in property. There's other lines of business like casualty that we're seeing massive submission activity for. And I just wouldn't look at the E&S market as a hard market play or a soft market play.

Speaker Change: And when we look at excess and surplus lines. We think there's great opportunities to continue to grow even though it may have been some slowdown in property. There's other lines of business like casualty that we're seeing massive submission activity and I just wouldn't look at the E&S market as a hard market play or soft marketplace.

Peter Salvatore Zaffino: It's just a market that's going to be here to stay in a different way. And so, you know, we're very much investing in that. I think the margins are great, and the growth opportunities are significant. Thank you. Next question.

Speaker Change: Just a market that's going to be here to stay in a different way and so we're very much investing in that.

Speaker Change: The margins are great and the growth opportunities are significant.

Speaker Change: Thank you.

Speaker Change: Next question.

Operator: Our next question comes from Elyse Greenspan with Wells Fargo. Your line is open. Hi, thanks. Good morning.

Elyse Beth Greenspan: Our next question comes from Elyse Greenspan with Wells Fargo. Your line is open. Hi, thanks. Good morning.

Speaker Change: Thank you. Our next question comes from Elyse Greenspan with Wells Fargo. Your line is open.

Peter Salvatore Zaffino: Peter, my first question, you know, last quarter, you had implied that a core bridge deconsolidation would come by the end of the second quarter. Does that timeframe remain intact? Good morning, Elyse.

Elyse Beth Greenspan: Hi, Thanks, Good morning, Peter My first question last quarter, you had implied that corporates deconsolidation com by the end of the second quarter does that timeframe remain intact.

Peter Salvatore Zaffino: There's not a whole lot more I can, you know, offer in terms of the prepared remarks. Every sell-down has been important, but this one isn't particularly important just because we would likely become a seller of shares that, you know, will deconsolidate Corbridge. So we, you know, continue to focus on making certain we're looking at every option available and considering all of those variables. Corbridge has done a significant amount of work working with AIG and independently to position itself to be a separate public company. It's done an exceptional job.

Elyse Beth Greenspan: Hi, good morning lease.

Speaker Change: A whole lot more I can offer in terms of the prepared remarks.

Speaker Change: Every sell down has been important but this one is and particularly important just because we would likely.

Speaker Change: Become.

Speaker Change: A seller of a shares that will be consolidated corbridge. So we.

Speaker Change: We continue to focus on making certain we're looking at every option available.

Speaker Change: And considering all of those variables corporate jobs done a significant amount of work.

Speaker Change: Working with AIG and independently to position itself to be a separate public company and it has done an exceptional job.

Peter Salvatore Zaffino: We've completed most of our transition service agreements, which just means they're more operationally prepared to go. And 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. Thanks. And then my follow-up question is on the new share count target that you provided for the end of 25, that is, $550 to $600 million. I'm just trying to get a sense of what the base case is for just CoreBridge within that.

Speaker Change: We're completed most of our transition service agreements, which just means they're more operationally.

Speaker Change: Prior to go and so again subject to market conditions I think my guidance I gave last quarter stands.

Speaker Change: We would expect to try and do something before the end of the second quarter.

Peter Salvatore Zaffino: Does that assume additional secondaries? If you did an exchange offer, would that be accretive to that share count target? I just want to get a sense of when you guys came up with this $550 to $600 million, what you're assuming for CoreBridge within that share count target. Thanks, Elyse.

Speaker Change: Thanks, and then my follow up is on the share count target that you provided for the end of 'twenty five that $5 $50 million to $600 million I'm, just trying to get a case what the base case is for just corbridge within that does that assume additional secondaries. If you did an exchange offer would that be accrued.

Speaker Change: Dave could that share count target I, just wanted to get a sense of when you guys came up with this $5 $50 million to $600 million, what youre, assuming for core bridge is that share count target.

Peter Salvatore Zaffino: I think while we gave the guidance into and to 2025, what I said in my prepared remarks was that, you know, by the end of the second quarter, if we, you know, exercised the share repurchases that we've outlined, we would be at the higher end of the range of 600 to 650. And if we continue the billion five a quarter, which yes, would contemplate doing a sell down of core bridge.

Speaker Change: Thanks Elyse.

Speaker Change: I think why we gave the guidance into.

Dave: Into 2025 is what I said in my prepared remarks is that by the end of the second quarter. If we exercise on the share repurchases that we've outlined we would be at the higher end of the range of 600 to 650 and if we continue the $1 five a quarter whats, yes would would contemplate doing a sell down of corbridge.

Peter Salvatore Zaffino: But there are other forms of liquidity that come in to AIG, but we would need a sell-down to be able to do the billion and a half in the third and fourth quarters, but that gets us to the lower end of the range. And then, as we continue to do future sell-downs, we will get below the 600 million share count, which is why we decided to give a little bit more guidance as we get into 2025.

Speaker Change: But theres other forms of liquidity that comment into AIG, but we would need to sell down to be able to do the 1 billion and a half in the third and fourth quarter, but that gets us to the lower end of the range and then as we continue to do future sell downs.

Speaker Change: We would get below the 600 million share count, which is why we decided to give a little bit more guidance as we get into 2025. It does not include a cell.

Peter Salvatore Zaffino: It does not include a sell-down to zero, but it does contemplate several transactions that would take place in the next four quarters. Thank you. Next question, please. Thank you. Our next question comes from Ryan Tunis with Autonomous. Your line is open.

Speaker Change: <unk> fell down to zero, but it does contemplate several transactions that would take place in the next four quarters.

Speaker Change: Thank you next question please.

Speaker Change: Thank you. Our next question comes from Ryan Tunis with Autonomous your line is open.

Operator: Just just to follow up, I guess on that last question, Peter. I guess the messaging on the $10 billion share repurchase authorization: are you trying to say that the intention is to do kind of no more than $10 billion to the end of 25? Or is that it? Should we just take this as an update of what you think you can do based on what you're seeing today? I would take it as just an update.

Ryan Tunis: Just just to follow up, I guess on that last question, Peter. I guess the messaging on the $10 billion share repurchase authorization: are you trying to say that the intention is to do kind of no more than $10 billion to the end of 25? Or is that it? Should we just take this as an update of what you think you can do based on what you're seeing today? I would take it as just an update.

Ryan Tunis: Okay. Thanks.

Ryan Tunis: Good morning, just a follow up I guess on that last question Peter.

Ryan Tunis: Just I guess the messaging on the $10 billion share repurchase authorization.

Ryan Tunis: Are you trying to say that the intention is to do kind of no more than $10 billion to the end of 'twenty five or is that should we just take this as an update of <unk>.

Speaker Change: Of what you think you can do based on what Youre seeing today.

Peter Salvatore Zaffino: We would have gone past our current board authorization with the 2025 guidance and worked very closely with the AIG board of directors to talk about what we expected the capital management strategy to be in the next six quarters. And that's really how we derive the $10 billion. But I wouldn't think about it anything more than that, on it, and then.

Speaker Change: I would take it.

Speaker Change: As just an update.

Speaker Change: What have gone past, our current board authorization with a 2025 guidance.

Speaker Change: And worked very closely with the AIG board of directors to talk about what we expected the capital management strategy to be in the next six quarters.

Speaker Change: And Thats really how we derive the $10 billion, but I wouldn't think about it anything more than that.

Speaker Change: Got it and then.

Peter Salvatore Zaffino: A follow-up, I guess, just thinking about the reinsurance and... I mean, obviously, you're continuing to add more, but you're saying, potentially, like in the future. Maybe scaling back on that a bit could be a way you could use some of your excess capital. Could you just talk a little bit about, I guess, how we should think about how gross underwriting, I think, has improved at AIG over the past few years? [inaudible] Yeah, like, what would make you comfortable?

Speaker Change: A follow up I guess, just thinking about the reinsurance.

Speaker Change:

Speaker Change: Okay.

Speaker Change: Obviously, you're continuing to add more but you are saying potentially like in the future maybe.

Speaker Change: Maybe you're scaling back on that a bit it could be a way you could use some of your excess capital could you just talk a little bit about.

Speaker Change: I guess, how the how we should think about how the gross underwriting I.

Speaker Change: I guess has improved at AIG over the past few years.

Speaker Change: <unk>.

Speaker Change: And.

Speaker Change: Yes, what would make you comfortable.

Peter Salvatore Zaffino: Because we only see stuff on a net basis, but what would give you comfort in retaining more net? Well, in terms of the portfolio, I'm comfortable today taking more net, but what we've done over this multi-year period in terms of strategically positioning the reinsurance is, you know, working very closely with our reinsurance partners, looking across multiple lines of business and multiple geographies in the placement of reinsurance, and then also, you know, making certain that we control volatility in this period of transition.

Speaker Change: Because we only see stuff on a net basis, but like what would give you comfort.

Speaker Change: Painting more net.

Speaker Change: Well in terms of the portfolio I'm comfortable today, taking more net.

Speaker Change: But what we've done over this multiyear period in terms of strategically positioning the reinsurance is.

Speaker Change: Working very closely with our reinsurance partners looking across multiple lines of business in multiple geographies.

Speaker Change: And the placement of reinsurance and then also.

Speaker Change: Making certain that we control volatility in this period of transition that's been really important I want to emphasize that because we not only are looking at our action year combined ratio excluding catastrophe.

Peter Salvatore Zaffino: And that's really important. I want to emphasize that because, you know, we not only are looking at our action year combined ratios, excluding catastrophes, but we have kept our retentions or lowered them in a period of high uncertainty and high volatility because we don't want to have, you know, any outsized losses or surprises, perhaps, or an active cap season. I think we're very different from other insurance companies in terms of how we purchase reinsurance. It's not done at the business level.

Speaker Change: We have kept our retentions or lowered them.

Speaker Change: A period of high uncertainty and high volatility.

Speaker Change: We don't want to have.

Speaker Change: Any outsized losses or surprises, perhaps or an active cat season.

Speaker Change: Also.

Speaker Change: I think we're very different than other insurance companies in terms of how we purchased reinsurance is not done.

Peter Salvatore Zaffino: It is not done, you know, within just the finance function or treasury. It's done by reports directly to me. And so I work very closely with Charlie Fry and work very closely with Sabra in terms of what our, you know, risk appetite is going to be for that particular year. And we've protected capital and had more quality earnings as a result of some of the reinsurance that we placed. A couple of examples of things that are just very good but impacted the first quarter are, you know, Switching more to excess of loss in certain segments like energy, we transitioned and proportionally signed down a little bit of the quota share. But it wasn't economical because we ended up getting a better outcome on the quota share with 200 basis points of improvement. So I just repositioned the portfolio and did the same thing with PropertyCat.

Speaker Change: At the business level. It is not done within just the finance function of our Treasury is done reports directly to me.

Speaker Change: And so I worked very closely with Charlie Frye and work very close with Sabra in terms of what our.

Speaker Change: <unk> appetite is going to be for that particular year.

Speaker Change: And we've protected capital and had more quality earnings as a result of some of the reinsurance that we place a couple of examples of things that are just very good but the impact of the first quarter as well.

Speaker Change: Switching more to.

Speaker Change: Excess of loss in certain.

Speaker Change: Segments like energy, we transitioned and proportionately signed down a little bit of the quota share, but it wasn't economic because we ended up getting a better outcome on the quota share with 200 basis points of improvement. So I just it's just repositioning the portfolio to the same thing with property Cat and the reason I just gave the example on our on our.

Peter Salvatore Zaffino: And the reason why I just gave the example of our earnings, you know, and sort of... prepared remarks is that, on PropertyCat, we can absolutely take more net if we decide to, as we enter 2025. Depending on the portfolio, and depending on our, you know, appetite for volatility, we'll still have one of the lowest attachment points of any of our peers across the world. We enhance coverage; there's a lot more coverage in our PropertyCat.

Speaker Change: Our earnings.

Speaker Change: I'm sorry.

Speaker Change: Prepared remarks is just on property cat, we can absolutely take more net if we decide to as we enter 2025, depending on the portfolio and depending on our appetite for volatility will start one of the lowest attach and points of any of our peers across the world.

Speaker Change: We enhanced coverage.

Speaker Change: A lot more coverage in our property cat.

Speaker Change: We've enhanced our high net worth business in terms of excess of loss and more comprehensive coverage and also again and I'll stop here because I could go on for hours on this discussion but is on casualty.

Peter Salvatore Zaffino: We've enhanced our high net worth business in terms of excess loss and more comprehensive coverage. And also, again, and I'll stop here because I could go on for hours about this discussion, but as for casualty, you know, we renewed or improved our overall structure across the globe based on the quality of our gross portfolio. So, you know, to start thinking about ways in which we can do reinsurance differently will not have anything really to do with the gross portfolio because they're very much like that's more of where do we want volatility and where do we want to take more net, and we see opportunities as we enter 2025. Thank you. Our next question comes from Rob Cox with Goldman Sachs. Your line is open.

Speaker Change: We renewed or improved.

Speaker Change: Our overall.

Speaker Change: Construct across the globe based on the quality of our gross portfolio. So the start.

Speaker Change: Thinking about ways in which we can do reinsurance differently, we will not have anything really to do with the gross portfolio because they're very much liked that's more <unk>.

Speaker Change: While volatility and where do you want to take Barnett and we see opportunities as we enter 2025.

Speaker Change: Thank you. Our next question comes from Rob Cox with Goldman Sachs. Your line is open.

Operator: Hey, thanks. First question on underwriting leverage. If I understand your comments on capital at the insurance companies with opportunities and property post the sale of Validus, it seems like AIG could meaningfully increase underwriting leverage here, which could obviously contribute to the 10% plus RCE. Could you provide any additional color on how you're thinking about underwriting leverage here and maybe some metrics you'd point us to?

Robert Cox: Hey, thanks. First question on underwriting leverage. If I understand your comments on capital at the insurance companies with opportunities and property post the sale of Validus, it seems like AIG could meaningfully increase underwriting leverage here, which could obviously contribute to the 10% plus RCE. Could you provide any additional color on how you're thinking about underwriting leverage here and maybe some metrics you'd point us to?

Robert Cox: Hey, Thanks first question on underwriting leverage.

Robert Cox: <unk>.

Robert Cox: Comments on capital at the insurance companies with opportunities in property post the sale of Validus. It.

Robert Cox: It seems like AIG could meaningfully increase underwriting leverage here.

Robert Cox: Obviously contribute to the 10% plus our CE could.

Speaker Change: Could you provide any additional color on how youre thinking about underwriting leverage here and maybe some metrics you'd point us to.

Peter Salvatore Zaffino: Sure, I'll ask Sabra to comment on some of the leverage within the insurance company subsidiaries. We see great opportunities for us to, you know, grow across the world. And you mentioned property and specifics; we have significantly reduced PMLs, which means we have aggregate to grow, and we have the capital to grow. And the interesting part of AIG is that when we look at property, we have so many different points of entry, depending on the risk-adjusted returns that exist.

Speaker Change: Sure.

Sabre: Sabre to comment on some of the leverage within the insurance company subsidiaries.

Speaker Change: We see great opportunities for us too.

Sabre: Grow within.

Speaker Change: Across the World and then you had mentioned property in specifics.

Sabre: We have significantly reduced <unk>, which means we have aggregate to grow and we have the capital to grow and.

Speaker Change: And the interesting part of AIG is that when we look at property. We have so many different points of entry depending on the risk adjusted returns that exists if I start in the United States.

Peter Salvatore Zaffino: If I start in the United States, and this is not, you know, all inclusive, but just as a few examples, we have Lexington E&S property, we have retail property, we have the high network business, and that can be done on an admitted or non-admitted basis.

Speaker Change: And this is not all inclusive, but just as a few examples we have <unk>.

Speaker Change: Lexington E&S property, we've retail property, we have a high net worth business.

Peter Salvatore Zaffino: We have retail property, an international property, we have Japanese property that's specific to Japan, we have Talbot, and we have global specialty. So there are so many different points of entry; depending on the risk-adjusted returns, we can scale up or scale down, but believe that there are going to be great opportunities for us in the future. Yes, the first quarter was tempered on property, but we're not into cat season yet, and our industry's famous for just framing out the market at a point in time.

Speaker Change: And that can be done or not an admitted or not admitted basis, we have retail property.

Speaker Change: In International we have Japan property, that's specific to Japan.

Speaker Change: Talbot global specialty so there's so many different points of entry depending on the risk adjusted returns, we can scale up or scale down.

Speaker Change: But believe that theres going to be great opportunities for us in the future, yes, I mean, the first quarter tempered on property, but look we're not into cat season, yet in our industry famous of just framing out the market at a point in time, we've got a long ways to go this year in terms of.

Sabra Rose Purtill: We have a long ways to go this year in terms of where the opportunities exist, but we absolutely have the leverage to grow if we like the risk-adjusted returns. Sabra, do you want to comment on that? Yes, thank you, Peter. What I would just observe is, as we stated in the past and I'll reiterate today, all of our general insurance subsidiaries or tier one subsidiaries on a global basis have capital at or above our target ranges, and within the United States pool, which is the largest pool of our general insurance capital, our risk-based capital ratios at the end of last year were around 460 percent, which is well higher than many of our peers.

Peter Salvatore Zaffino: We have a long ways to go this year in terms of where the opportunities exist, but we absolutely have the leverage to grow if we like the risk-adjusted returns. Sabra, do you want to comment on that? Yes, thank you, Peter. What I would just observe is, as we stated in the past and I'll reiterate today, all of our general insurance subsidiaries or tier one subsidiaries on a global basis have capital at or above our target ranges, and within the United States pool, which is the largest pool of our general insurance capital, our risk-based capital ratios at the end of last year were around 460 percent, which is well higher than many of our peers.

Speaker Change: The opportunities exist, but we absolutely have the leverage to to grow if we like the risk adjusted returns. However, you want to comment on that yes. Thank you Peter.

Speaker Change: What I would just observe is as we've stated in.

Speaker Change: In the past and I'll reiterate today all of our general insurance subsidiaries of tier one subsidiaries on a global basis have capital at or above our target ranges and within the United States pool, which is the largest pool.

Speaker Change: Pool of our general insurance capital our risk based capital ratios at the end of last year were around 460%, which is well higher than many of our peers.

Sabra Rose Purtill: So what I would note is that within the general insurance companies, we're strongly capitalized to be able to support growth, obviously protected by the reinsurance programs that we have, but I would just, as a general note, comment that premiums to surplus leverage isn't the best way to look at capital within a general insurance company, particularly given a company like AIG, which is a leading player in casualty and specialty lines across the globe Thank you. Thanks, that's a really helpful color.

Peter Salvatore Zaffino: So what I would note is that within the general insurance companies, we're strongly capitalized to be able to support growth, obviously protected by the reinsurance programs that we have, but I would just, as a general note, comment that premiums to surplus leverage isn't the best way to look at capital within a general insurance company, particularly given a company like AIG, which is a leading player in casualty and specialty lines across the globe Thank you. Thanks, that's a really helpful color.

Speaker Change: So what I would note is that within the general insurance companies, we're strongly capitalized to be able to support growth obviously protected by the reinsurance programs that we have.

Speaker Change: Just as a general note comments at premiums to surplus surplus leverage isn't the best way to look at capital within General Insurance company, particularly given a company like AIG, which is a leading player in casualty and specialty lines across the globe.

Speaker Change: Thank you Sandra.

Peter Salvatore Zaffino: Yeah, just to follow up on excess casualty, appreciate the comment. Premiums are up 46% in the quarter, and it seems like pricing is up meaningfully. It seems like AIG is taking advantage of market conditions while perhaps some others are pulling back.

Sandra: Thanks, that's really helpful color.

Speaker Change: Just a follow up on excess casualty I appreciate the comments that premiums are up 46% in the quarter. It seems like pricing is up meaningfully.

Speaker Change: It seems like AIG is taking advantage of market conditions, while perhaps some others are pulling back. So I was hoping you could.

Peter Salvatore Zaffino: So I was hoping you could provide a little bit more commentary on the opportunities you're seeing there and what makes AIG comfortable with the current environment. Thank you. We do see great opportunities in casualty. We highlighted some of the performance in the quarter.

Speaker Change: Provide a little bit more commentary on the opportunities youre seeing there and what makes AIG comfortable with the current environment.

Speaker Change: Thank you.

Speaker Change: Do you see great opportunities in <unk>.

Speaker Change: Casualty, we highlighted some of the performance in the quarter.

Peter Salvatore Zaffino: We got off to a good start because of the portfolio that existed, re-underwriting the casualty portfolio well before I think it was discussed in the industry, and with that, came a new underwriting philosophy, new underwriting strategy, new terms and conditions, new attachment points, net limit, gross limits, pricing, and margin, and so that's been a journey for us for years. You know, we mentioned the 16% in excess casualty rate is as strong as we've seen in the past several years, and so we do think there's a lot of capacity pulling back.

Speaker Change: We had to start because of the portfolio that existed.

Speaker Change: Underwriting the casualty portfolio well before I think it was discussed really in the industry.

Speaker Change: And then with that became a new underwriting philosophy, new underwriting strategy in terms of conditions no attachment points net limit gross limits pricing margin.

Speaker Change: And so that's been a journey for us for for years.

Speaker Change: We mentioned the 16% in excess casualty in terms of rate is as strong as we've seen in the past several years and so that we do think there is a lot of capacity pulling back we have a very comprehensive reinsurance to mitigate volatility and enabled us to put out limits, depending on our risk appetite.

Peter Salvatore Zaffino: We have very comprehensive reinsurance to mitigate volatility and enable us to put out limits depending on our risk appetite, and obviously, we're cautious. You know, we're watching the different, you know, different lines of business within casualty and their trends but absolutely see opportunities to grow, and when you should, when you look at our premium, don't think about it as we've grown our policy count, you know, or limits. It's actually the

Speaker Change: And obviously we're cautious.

Speaker Change: We're watching the different.

Speaker Change: Different lines of business within casualty.

Speaker Change: And their trends, but absolutely see opportunities to grow and when you. When you look at our premium don't think about it as we've grown policy count.

Peter Salvatore Zaffino: I mean, our client count, policy count, and limits are all dramatically reduced when you compare them to three or four years ago. It's just been the effect of where we've participated and how we've run the business and believe that, again, we're going to be cautious, but there are real opportunities for growth in the current market. Got it. Thanks a lot.

Speaker Change: Or limit, it's actually the opposite I mean like our client count.

Speaker Change: Alastair count and limits are all dramatically reduced when you compare them to three or four years ago.

Speaker Change: Just been the effect of where we participated in how we price the business and believe that again, we're going to be cautious, but there are real opportunities for growth.

Speaker Change: In the current market.

Speaker Change: Got it thanks a lot.

Operator: Thank you. Our next question comes from Michael Ward with Citigroup. Your line is open. Thanks, guys. Good morning.

Michael Augustus Ward: Thank you. Our next question comes from Michael Ward with Citigroup. Your line is open. Thanks, guys. Good morning.

Speaker Change: Thank you. Our next question comes from Michael Ward with Citigroup. Your line is open.

Peter Salvatore Zaffino: I'm a little bit curious about the potential selldown of Corbridge. How do you weigh the options between doing, you know, several smaller, you know, chunks of selldown from here versus maybe the potential for doing a selldown of the remaining stake? And then another thing on the other side, right, we sort of think about this $500 a month, $500 million a month buyback. Is there the option to potentially do an ASR, you know, post-selldown?

Michael Augustus Ward: Thanks, guys good morning.

Michael Augustus Ward: A little bit curious just on the potential sell down of corbridge, how do you weigh the options between doing.

Michael Augustus Ward: Several smaller.

Michael Augustus Ward: Trunks of sell down from here versus maybe the potential for doing a sell down of the remaining stake and then another thing on the other side right, where we sort of think about this $500 a month 500 million a month buyback is there the option to potentially.

Michael Augustus Ward: <unk>.

Michael Augustus Ward: Do an ASR.

Michael Augustus Ward:

Michael Augustus Ward: Post sell down.

Peter Salvatore Zaffino: Thank you. I wish I could provide a little bit more detail on the first part of the question. You know, we're looking at all alternatives, all sizes. I mean, so much is market-dependent. You have certain windows, and we want to make sure we have multiple stakeholders. I mean, within CoreBridge, shareholders, and AIG shareholders.

Speaker Change: I wish I could provide a little bit more detail on the first part of the question.

Speaker Change: We're looking at all alternatives all size I mean, so much is market dependent.

Michael Augustus Ward: Certain windows.

Michael Augustus Ward: And we want to make sure we have multiple stakeholders within corbridge shareholders AIG shareholders. So sort of balancing that is really important for us, but as I said in my answer in prepared remarks, we're ready to go and.

Peter Salvatore Zaffino: So, sort of balancing that is really important for us. But, as I said in my answer and prepared remarks, we're ready to go. Everybody is anxious to move forward.

Michael Augustus Ward: Everybody is anxious to move forward.

Peter Salvatore Zaffino: But we're going to make sure we do it in a very methodical way so that we don't do anything that's not in the best interest of all that we've done so far with our stakeholders. So we will consider multiple options and, you know, keep everybody updated. On the ASR, I mean, I think we have, you know, largely thought about this. And, Sabra, if you want to comment to close out, we've done, you know, share repurchase in a methodical way. We always consider different ways in which we can do it.

Michael Augustus Ward: But we're going to make sure we do it in a very methodical way to where we don't do anything that's not in the best interest of all that we've done so far and our stakeholders. So.

Michael Augustus Ward: We will consider multiple options.

Michael Augustus Ward: And keep everybody updated on the ASR I mean, I think we largely thought about this in favor if you want to comment to close out.

Michael Augustus Ward: We've done share repurchases in a methodical way, we always consider different ways in which we can do it but maybe you can just comment and then I'll close it out yes. Thanks.

Sabra Rose Purtill: But maybe you can just comment, and then I'll close it out. Yeah, thanks. The thing you should keep in mind is that the amount of shares that we can repurchase or that can be repurchased by a company in any given month, whether it's an ASR or it's a 10B51 plan or open market purchases, it's constrained by the same factor, which is the average daily trading volume. We have looked at doing ASRs.

Speaker Change: The thing you should keep in mind is it with the amount of shares that we can repurchase or can be repurchased by the company in any given month, whether it's an ASR or it's a <unk> one plan or open market purchases is constrained by the same factor, which is the average daily trading volume and we have looked at doing ASR and to date, what we prefer.

Sabra Rose Purtill: And to date, what we've preferred to do is just be consistently in the market every day through a 10B51 plan. But it's certainly something if we were to do a larger sale of a core bridge stake where we wanted to redeploy that quickly and get the benefit of that into our share count, then an ASR is a tool that we can use to do that. But in terms of the volume per month, it doesn't really vary that much whether it's an ASR or a 10B51.

Speaker Change: Her to do is just be consistently in the market every day.

Speaker Change: Through a <unk> one plan, but it's certainly something if we were to do a larger sale of corbridge stake, where we wanted to to redeploy that quickly and get the benefit of that into our share count.

Speaker Change: And an ASR is a tool that we can use to do that but in terms of the volume per month that it doesn't really vary that different whether it's an ASR or <unk> hundred one.

Sabra Rose Purtill: Thanks, Sabra. And, you know, in closing, I just want to thank all of our colleagues around the world for their continued dedication, teamwork, execution and all the progress we've made. And I want to thank everybody for joining us today and your questions. Everybody have a great day. Thank you for your participation. This does conclude the program. You may now disconnect. Everyone have a great day. [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Peter Salvatore Zaffino: Thanks, Sabra. And, you know, in closing, I just want to thank all of our colleagues around the world for their continued dedication, teamwork, execution and all the progress we've made. And I want to thank everybody for joining us today and your questions. Everybody have a great day. Thank you for your participation. This does conclude the program. You may now disconnect. Everyone have a great day. [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Speaker Change: Thanks Sabra.

Speaker Change: In closing I, just want to thank all of our colleagues around the world for their continued dedication teamwork execution on all the progress we've made and I want to thank everybody for joining us today and your questions everyone have a great day.

Speaker Change: Thank you for your participation. This does conclude the program you may now disconnect everyone have a great day.

Speaker Change: [music].

Speaker Change: Okay.

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Speaker Change: [music].

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Speaker Change: Sure.

Peter Zaffino: [music].

Speaker Change: Okay.

Peter Salvatore Zaffino: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Peter Salvatore Zaffino: [music].

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Speaker Change: [music].

Speaker Change: Yes.

Peter Salvatore Zaffino: [music].

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Speaker Change: [music].

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Speaker Change: Yes.

Peter Salvatore Zaffino: Yeah.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: [music].

Speaker Change: Yes.

Speaker Change: Okay.

Peter Salvatore Zaffino: [music].

Speaker Change: Yes.

Sabra Rose Purtill: [music].

Peter Salvatore Zaffino: Okay.

Speaker Change: Yes.

Peter Salvatore Zaffino: Okay.

Speaker Change: Okay.

Peter Salvatore Zaffino: Okay.

Speaker Change: [music].

Sabra Rose Purtill: Okay.

Speaker Change: Yes.

Peter Salvatore Zaffino: [music].

Speaker Change: Great.

Sabra Rose Purtill: Yes.

Sabra: Thank you.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Sabra Rose Purtill: Yeah.

Peter Zaffino: Okay.

Sabra Rose Purtill: Okay.

Sabra Rose Purtill: So.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Zaffino: Yes.

Peter Salvatore Zaffino: Yes.

Sabra Rose Purtill: [music].

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Speaker Change: Sure.

Peter Salvatore Zaffino: Okay.

Speaker Change: Okay.

Peter Salvatore Zaffino: Okay.

Speaker Change: Yes.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Sabra Rose Purtill: Yes.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Sabra Rose Purtill: Okay.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Thanks.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Sabra: Thank you.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Thanks.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Sabra: Thank you.

Peter Salvatore Zaffino: Doug.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Sabra: Thank you.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: No.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Thanks.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

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Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Right.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Great.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Sabra: Thank you.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: <unk>.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Great.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Great.

Peter Salvatore Zaffino: <unk>.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: <unk>.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Great.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Yeah.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Sure.

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

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Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: [music].

Peter Salvatore Zaffino: Okay.

Peter Salvatore Zaffino: Yes.

Peter Salvatore Zaffino: Thanks.

Peter Salvatore Zaffino: [music].

Q1 2024 American International Group Inc Earnings Call

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