American International Group, Inc. (NYSE:AIG) Q4 2022 Earnings Call Transcript

And so we think there’s great opportunities in Excess & Surplus lines continue to grow. Again, global specialties, retail property across the world. We’ll watch international, but I don’t believe that the treaty increased pricing that happened, which was substantial at 1:1, will play its way through the International business until 2024. Because a lot of the deals, 60% of it comes up at 1:1, was priced off of prior year treaties. And so I think this has momentum. We are incredibly well positioned. We have no aggregate restrictions. And where we see risk-adjusted returns that are attractive, which we already have, we’re going to deploy capital. That was the whole idea of putting more capital in subsidiaries, and then it goes to other lines of business.

I mean, you cross-sell what we do in casualty, how we play in these different markets, we have such tremendous following as lead experts in underwriting that we believe, across the world our platform will be very helpful to our clients, and we expect to find really strong areas for growth.

Alex Scott: That’s really helpful. Second one I had is more specifically on casualty and excess casualty pricing. We’ve heard some peer’s kind of talked about pricing and expressed the need for it to reaccelerate. And I think some investors seem to be getting a little more cautious about the potential for continued deceleration there. I felt like your prepared remarks were a little more optimistic. I’d just be interested in your perspective on the portfolio at AIG, what you’re seeing in the market and where you’d expect things to go there.

Peter Zaffino: We watch it carefully. I mean excess casualty; we’re still getting very strong rate we have for the last couple of years. And that didn’t stop in the fourth quarter. My prepared remarks were really just focused on; I don’t think the market that we entered in the fourth quarter is the market that we’re in. There’s been a lot of changes over the last 60 days, and like every other line of business it needs to stand on its own, it needs to develop margin. We want to be conservative in our position and making certain that the underwriting terms and conditions are appropriate. But we’re watching it carefully. I haven’t seen a substantial downturn in terms of pricing. It’s been right in the sort of same range for, as I said, the last six quarters. And it’s something that we’re going to watch very carefully in 2023.

Alex Scott: Okay. Thank you.

Peter Zaffino: Okay. We greatly appreciate the engagement and all the questions and appreciate the interest. And so I just wish everybody a great day, and thank you for being here.

Operator: Ladies and gentlemen, this concludes your conference for today. Thank you for your participation. You may now disconnect.