American International Group, Inc.

Annual commercial insurance premiums renew with high retention typical of broker-intermediated large accounts, providing consistent forward visibility; AIG's net premiums written of $23.7B in FY2025 were stable year over year on a comparable basis. Cyclical pricing dynamics limit contractual lock-in, keeping predictability above average but not at subscription-level durability.

AIG underwrites property, casualty, financial lines, and specialty risks across three segments, with North America Commercial representing roughly 37% of total FY2025 net premiums written of $23.7B. All segments share exposure to the same insurance pricing cycle, limiting the within-portfolio diversification benefit despite the multi-line structure.

AIG operates across more than 200 countries; North America Commercial net premiums written of roughly $8.8B in FY2025 represent approximately 37% of total, with International Commercial spanning Japan, the UK, Europe, the Middle East, and Asia Pacific. No single non-US country dominates, providing genuine geographic breadth across multiple insurance regulatory environments.

Commercial insurance requires proportional underwriter headcount, claims personnel, and regulatory capital, limiting operating leverage relative to platform-based businesses. AIG is investing in generative AI partnerships (announced at its March 2025 investor day) to improve underwriting efficiency, but insurance's structural capital and labor intensity keeps scalability modest.

Commercial insurance premiums are contractual annual renewals, legally required for most large commercial operations, providing mission-critical stickiness. AIG's large-account commercial book has low mid-term cancellation rates, though revenue net of claims introduces uncertainty around ultimate loss costs that is absent from pure subscription businesses.