Convex Group grew gross written premium by 14% in 2025 to $5.88bn (£4.35bn) as it made a net profit for the third year in a row ahead of sealing investment from AIG.The international specialty insurer and reinsurer’s combined operating ratio deteriorated year-on-year from 87.3% to 89%.However its net income jumped just over 40% to $711m.AIG took a 35% equity investment in Convex and Onex Corporation reinvested as a majority shareholder with a 63% stake in a deal that was announced last October and  complete ...

Want unlimited access to top ideas and insights? Subscribe NowEnjoy complimentary access to top ideas and insights — selected by our editors.Want unlimited access to top ideas and insights?The following summaries are written by the Digital Insurance editorial staff.Processing ContentDigital Insurance reviews a high volume of news leads every week for this and other stories. Please send press releases and other information to kaitlyn.mattson@arizent.com. These summaries were crafted using AI and then review ...

Core Insights - Berkshire Hathaway Inc. significantly reduced its stake in Amazon.com Inc. by over 75% in Q4, while acquiring a new stake in the New York Times Co. valued at $351.7 million [1][2] Investment Actions - Berkshire acquired 5.1 million shares of the New York Times Co. during the last quarter of the year [1] - The company now holds approximately 2.3 million shares of Amazon after the reduction [2] - Berkshire continued to decrease its stakes in Bank of America Corp. and Apple Inc., bringing them to 7.1% and 1.5% respectively [3] - The stakes in oil producer Chevron Corp. and insurance firm Chubb Ltd. were increased to 6.5% and 8.7% respectively [3] Market Reactions - The New York Times shares rose by 1.8% to $75.39 in early trading following the news [2] - Amazon shares increased by 1.3% in the same trading session [2] - Chubb's shares experienced an approximate 11% rise over Q4 after speculation about a potential acquisition of American International Group Inc. [4] Strategic Moves - Buffett, who stepped down as CEO on December 31, has been actively pursuing new investments, including a $9.7 billion deal for Occidental Petroleum Corp.'s petrochemical business and a $5.6 billion stake in Alphabet Inc. [5]

Group 1 - Berkshire Hathaway reduced its stake in Amazon by over 75% in Q4, while investing $351.7 million in the New York Times Company [1][3] - The company acquired 5.1 million shares of the New York Times Company, valued at $351.7 million at year-end [3] - Berkshire continued to trim its stakes in Bank of America and Apple, reducing them to 7.1% and 1.5%, respectively [4] Group 2 - Berkshire increased its stakes in Chevron and Chubb to 6.5% and 8.7%, respectively, during the same period [5] - Chubb's shares rose approximately 11% in Q4 after reports of an informal approach to acquire American International Group Inc. [5] - Warren Buffett has been active in making purchases, including a $9.7 billion deal for Occidental Petroleum Corp.'s petrochemical business and a $5.6 billion stake in Alphabet Inc. [6]

Industry Overview - The insurance industry is influenced by better pricing, climate change leading to catastrophe losses, and accelerated digitalization [1] - Global commercial insurance rates fell by 4% in Q4, marking the sixth consecutive quarter of decline due to increased competition from reinsurers and new entrants [2] Berkshire Hathaway (BRK.B) Analysis - Berkshire Hathaway is a diversified conglomerate with over 90 subsidiaries across various industries, which helps mitigate concentration risk [4] - Insurance constitutes approximately 25% of Berkshire's total revenues, with growth supported by increasing demand, disciplined underwriting, and favorable pricing trends [5] - The company has a strong financial position with over $100 billion in cash and a return on equity (ROE) of 7.3%, which is below the industry average [8] - Recent stock performance shows a 1% gain over the past month [8] American International Group (AIG) Analysis - AIG is a leading global insurance organization providing a wide range of insurance and financial services in over 80 countries [9] - The company has focused on stricter underwriting, divesting non-core businesses, and modernizing operations, resulting in an average underwriting profit of $2 billion annually over the past three years [11] - AIG's capital deployment strategy includes $734 million in dividends and $5.3 billion in share repurchases over the first nine months of 2025, with an ROE of 9.8% [13] - AIG's stock has gained 8.5% in the past month [13] Financial Estimates - The Zacks Consensus Estimate for BRK.B's 2026 revenues indicates a 4.7% year-over-year increase, while EPS is expected to decrease by 0.1% [14] - For AIG, the 2026 revenue estimate suggests a 5.3% year-over-year increase, with EPS expected to rise by 10.2% [15] Valuation Comparison - Berkshire Hathaway's price-to-book ratio is 1.54, above its five-year median of 1.44, while AIG's ratio is 1.03, above its median of 0.98 [16] Conclusion - Berkshire Hathaway offers a diversified investment opportunity, but investors are cautious about its performance under new leadership [17] - AIG's strategic initiatives and capital deployment enhance shareholder value, making it more appealing based on ROE and valuation metrics [19]

Financial Performance - As of December 31, 2025, AIG reported approximately $41 billion in shareholders' equity and $9.3 billion in liquidity sources[16] - AIG's investment income and insurance premiums are the primary sources of revenue, with a focus on managing losses and expenses[31] - The company generates revenues primarily from insurance premiums and investment income, with profitability dependent on effective risk management and cost control[31] - AIG's insurance subsidiaries exceeded the Risk-Based Capital (RBC) thresholds as of December 31, 2025, indicating strong financial health[57] Workforce and Talent Management - The company has a global workforce of over 22,100 employees, with 27% in North America, 47% in Asia Pacific, and 26% in EMEA and Latin America[36] - In 2025, 38% of open positions were filled with internal talent, highlighting AIG's commitment to talent development and succession planning[44] - AIG's human capital management focuses on attracting and retaining talent, with competitive compensation and benefits programs in place[34][37] - The company offers extensive online learning programs to enhance employees' insurance and business knowledge, critical job skills, and continuing education credits[42] - AIG's Employee Assistance Program (EAP) provides confidential counseling and mental health resources to employees in nearly every country where it operates[38] - The company emphasizes building managerial capability through interactive learning experiences for people managers[43] Regulatory Environment - AIG's insurance subsidiaries are subject to extensive regulation, impacting operations and profitability due to evolving laws and regulations[46][48] - AIG is subject to Group Capital Calculation (GCC) requirements starting in 2024, aimed at evaluating capital position at the group level[66] - The Financial Stability Oversight Council (FSOC) can designate nonbank financial companies as systemically important, impacting regulatory oversight[65] - The National Association of Insurance Commissioners (NAIC) provides standardized accounting and reporting guidance for insurance companies[59] - AIG's insurance subsidiaries in Bermuda must comply with solvency and liquidity standards imposed by the Bermuda Monetary Authority[72] - The Monetary Authority of Singapore (MAS) regulates AIG's insurance subsidiary in Singapore, enforcing minimum capital and solvency requirements[73] - AIG's insurance subsidiaries are required to maintain prescribed capital and solvency requirements, ensuring financial stability and compliance with regulatory standards[54] - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and recommend prudential standards[63] Compliance and Risk Management - AIG is subject to various international laws and regulations regarding data protection and cybersecurity, including GDPR and CCPA[87][84] - AIG's cybersecurity policies require disclosure of material incidents and governance oversight, as mandated by the SEC[86] - The EU General Data Protection Regulation (GDPR) imposes fines of up to 4% of global revenue for serious infringements, affecting AIG's operations in the European Economic Area[87] - The California Consumer Privacy Act (CCPA) imposes significant privacy obligations on businesses handling data related to California residents, effective since January 1, 2020[84] - AIG actively monitors the regulatory landscape surrounding climate change and sustainability, addressing governance and risk management requirements[92] - The International Association of Insurance Supervisors (IAIS) has adopted a risk-based global Insurance Capital Standard (ICS) for internationally active insurance groups[79] - AIG is required to provide comprehensive resolution plans to global regulators starting in December 2024, as part of systemic risk management[78] Corporate Culture and Community Engagement - The company emphasizes a culture of inclusion and integrity, aiming to provide equal opportunities for all employees[45] - AIG has provided over 3,600 grants through the AIG Compassionate Colleagues Fund since its inception in 2021, supporting employees in financial hardship[39] - The AIG Compassionate Colleagues Fund has provided over 3,600 grants to employees in 19 countries since its inception in 2021[39] Business Operations - AIG operates through three segments: North America Commercial, International Commercial, and Global Personal, with General Insurance being a significant contributor to revenue[21] - AIG maintains strong distribution relationships with brokers and agents, enhancing its market presence and service quality[14] - The company operates in a highly competitive insurance industry, differentiating itself through underwriting excellence and tailored insurance solutions[28] - AIG's General Insurance segment includes major operating companies such as National Union Fire Insurance Company and American Home Assurance Company[22] - AIG has adopted a model bulletin on the use of AI in insurance, reflecting regulatory guidance on technology innovations in the marketplace[89]

Core Insights - AIG reported a net income of $735 million for Q4 2025, a decrease from $898 million in the same quarter last year [1] - The company achieved a net income of $3.1 billion for the full year 2025, a significant recovery from a net loss of $1.4 billion in 2024 [2] - AIG's general insurance gross written premiums (GWP) for 2025 were $35.83 billion, with a combined ratio of 90.1%, an improvement from 91.8% in the previous year [3] Financial Performance - In Q4 2025, AIG's property and casualty (P&C) business reported gross written premiums of $8.07 billion, slightly up from $8.02 billion a year ago [1] - The net written premiums (NWP) for the P&C division were $6.04 billion, down 1% from $6.06 billion in Q4 2024 [1] - North America commercial NWP reached $2.29 billion, an increase of 2.8%, with a combined ratio improving to 84.7% from 98.8% [2] Investment Income - Total net investment income for Q4 2025 was $872 million, a decline of 34% from $1.3 billion in the prior-year quarter [2] - For the full year, total net investment income was $4.2 billion, down 1% from $4.3 billion, primarily due to a decline in other investments [3] Shareholder Returns - AIG returned $6.8 billion to shareholders in 2025, which included $5.8 billion in share repurchases and approximately $1 billion in dividends [4] Leadership Changes - AIG's chairman and CEO Peter Zaffino announced that 2025 was an exceptional year for the company, with significant progress and financial results [5] - Eric Andersen has been appointed as president and CEO-elect, set to take over on February 16, 2026, as Zaffino transitions to executive chair [6]

Core Insights - American International Group, Inc. (AIG) reported fourth-quarter 2025 adjusted earnings per share of $1.96, exceeding the Zacks Consensus Estimate by 3.5% and reflecting a 51% year-over-year increase [1][9] - Adjusted operating revenues rose 1.5% year over year to $6.9 billion, although this figure fell short of consensus estimates by 2.2% [1][4] Financial Performance - The quarterly results were bolstered by improved underwriting results in the North America Commercial and Global Personal segments, but were partially offset by weaker premiums in the Global Personal segment and lower investment income [2][4] - Net premiums written totaled $6 billion, representing a 1% decline year over year, with growth in Global Commercial countered by a decline in Global Personal [3][11] - Total net investment income decreased by 34% year over year to $872 million, missing consensus estimates by 12.9%, primarily due to lower fair value gains and reduced income from Corebridge [4][12] Underwriting and Segment Performance - General Insurance underwriting income increased to $670 million, a 48% rise year over year, surpassing the Zacks Consensus Estimate by 11.1% [5][9] - The combined ratio for General Insurance improved by 370 basis points to 88.8, indicating stronger underwriting performance compared to the prior-year quarter [5][10] - In the North America Commercial segment, net premiums written rose 3% year over year to $2.3 billion, driven by growth in Programs and Excess Casualty [6][7] - The International Commercial segment reported net premiums written of $2.2 billion, up 5% year over year, supported by growth in Global Specialty and Casualty lines [8] Financial Position and Capital Deployment - AIG ended Q4 2025 with a cash balance of $1.27 billion and total assets of $161.25 billion, slightly down from the previous year [13] - Long-term debt increased to $9 billion, while total shareholders' equity declined to $41.1 billion [13] - The company returned approximately $567 million to shareholders through share repurchases and $242 million in dividends during the fourth quarter [15] Full-Year 2025 Overview - For the full year 2025, AIG reported total revenues of $26.8 billion, a 1.8% decline from 2024, but adjusted earnings increased by 43.2% year over year to $7.09 per share [16] - The combined ratio improved by 170 basis points to 90.1, driven by higher underwriting income and stronger net investment income within the general insurance segment [16]

Company Overview - American International Group (AIG) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price decline of 12.33% since the beginning of the year [3] Dividend Information - AIG currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.4%, which is higher than the Insurance - Multi line industry's yield of 1.52% and the S&P 500's yield of 1.36% [3] - The annualized dividend of $1.80 represents a 2.9% increase from the previous year [4] - Over the past 5 years, AIG has increased its dividend 3 times, averaging an annual increase of 6.78% [4] - The current payout ratio is 28%, indicating that AIG pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for AIG's earnings in 2026 is $7.81 per share, reflecting a year-over-year growth rate of 10.16% [5] Investment Considerations - AIG is considered a strong dividend investment opportunity, especially for income investors, as it offers a compelling yield and has a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Shares of American International Group (AIG) have shown mixed performance over the past year, remaining essentially flat despite solid results from the company, primarily due to pressures in the insurance sector related to concerns about thinning margins [1] Company Performance - AIG has delivered solid results, indicating operational stability [1] - The stock has not experienced significant growth, reflecting a flat trading performance over the past year [1] Industry Context - The insurance sector is facing challenges, particularly concerns regarding thinning margins, which have impacted stock performance [1]