AIG Reports Strong Q1 Profit Surge on Underwriting Gains

American International Group (AIG) has reported a robust start to the fiscal year, with first-quarter net income rising to $763 million, or $1.41 per share. This represents a notable increase from the $698 million, or $1.16 per share, recorded during the same period last year. The growth was primarily driven by a surge in top-line performance and operational efficiency. Net premiums written climbed 24% year-over-year to reach $5.60 billion, while underwriting income more than tripled, jumping from $243 million to $774 million. A key driver of this profitability was the improvement in the company's combined ratio, which fell to 87.3% from 95.8% a year ago. This improvement was largely attributed to lower catastrophe losses and enhanced underwriting results, signaling a more favorable risk environment for the insurer. On an adjusted basis, the company's after-tax income saw an even sharper increase, reaching $1.15 billion, or $2.11 per share, compared to $702 million, or $1.17 per share, in the prior year's first quarter. These results underscore a period of strong fundamental growth for the insurance giant.