Q1 2026 results exceeded expectations, with the core drivers being strong premium growth, reinsurance cost savings, and expense ratio improvement.

Net premiums written increased 18% year-over-year, adjusted after-tax income per diluted share was $2.11 (+80%), and the General Insurance accident year combined ratio was 86.6% (improved 120 bps).

Global Commercial premiums increased 21%, and the Personal Insurance combined ratio improved 570 bps to 89.9%. AI deployment accelerated, with AIG Assist improving Lexington mid-market property insurance efficiency by 30% and increasing the binding ratio by 40%. The stake in Corebridge was reduced to 5.6%, with a plan to fully exit by 2026. Capital returned $760 million, and dividends were increased by 11%.

Maintained Investor Day guidance, with operating EPS CAGR >20% through 2027, ROE of 10-13%, and expense ratio <30%. Other investment income in Q2 is expected to be $30-40 million. No upward or downward revision.

Highlights: Management is highly optimistic about AI and business progress, emphasizing "exceptional." Risks: Pricing pressure persists in the U.S. Property large account market, and Lexington's large account portfolio contracted 19%.