Core Insights - American International Group (AIG) reported a revenue of $7.06 billion for the quarter ended September 2025, reflecting a 3.1% increase year-over-year and a 3% surprise over the Zacks Consensus Estimate of $6.85 billion [1] - Earnings per share (EPS) for the quarter was $2.20, significantly higher than the $1.23 reported in the same quarter last year, resulting in a 30.95% surprise over the consensus EPS estimate of $1.68 [1] Financial Performance Metrics - General Insurance - North America Commercial reported a loss ratio of 59.3%, better than the estimated 67.8% [4] - General Insurance - International Commercial had a combined ratio of 84.9%, outperforming the estimated 87.2% [4] - General Insurance - North America Commercial's combined ratio was 82.6%, compared to the estimated 91.1% [4] - General Insurance - International Commercial's expense ratio was 31.6%, slightly above the estimated 30.6% [4] - Total net investment income was reported at $772 million, which is a 20.7% decrease year-over-year and below the average estimate of $990.96 million [4] - General Insurance - Net premiums earned totaled $6.04 billion, exceeding the average estimate of $5.93 billion and reflecting a year-over-year increase of 1.6% [4] Stock Performance - AIG shares have returned -4.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - American International Group (AIG) reported quarterly earnings of $2.2 per share, exceeding the Zacks Consensus Estimate of $1.68 per share, and showing a year-over-year increase from $1.23 per share [1] - The company achieved revenues of $7.06 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.00% and up from $6.84 billion a year ago [2] - AIG's stock has increased approximately 8.5% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Performance - AIG has surpassed consensus EPS estimates in all four of the last quarters, with a notable earnings surprise of +30.95% in the latest report [1][2] - The company has also topped consensus revenue estimates three times over the last four quarters [2] Future Outlook - The sustainability of AIG's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.87 on revenues of $6.9 billion, and for the current fiscal year, it is $6.48 on revenues of $27.22 billion [7] Industry Context - The Insurance - Multi line industry, to which AIG belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - AIG reported adjusted after-tax income (AATI) of $1.2 billion, or $2.20 per diluted share, for Q3 2025, reflecting a 52% year-over-year increase[5]. - Net income attributable to AIG common shareholders was $519 million, or $0.93 per diluted share, up 13% from the prior year quarter[8]. - AIG reported a net income attributable to common shareholders of $2,076 million for the three months ended September 30, 2025, compared to $1,836 million for the same period in 2024, reflecting a 13.1% increase[63]. - The adjusted pre-tax income attributable to AIG common shareholders for the nine months ended September 30, 2024, was $3,241 million, compared to $3,922 million in 2025, indicating a growth of 21%[51]. - Basic earnings per share from continuing operations increased by 25.3% to $0.94 for the three months ended September 30, 2025, compared to $0.75 in 2024[58]. - Adjusted after-tax income attributable to AIG common shareholders per diluted share rose by 77.4% to $2.20 for the three months ended September 30, 2025, from $1.24 in 2024[58]. Underwriting and Insurance Operations - General Insurance underwriting income grew 81% year-over-year to $793 million, driven by lower catastrophe-related charges and favorable prior year development[15]. - The combined ratio for General Insurance improved to 86.8%, a 580 basis point improvement year-over-year[5]. - Net premiums written (NPW) for General Insurance were $6.2 billion, a decrease of 2% year-over-year on a reported basis[5]. - The combined ratio improved to 95.2% in Q3 2024 from 98.8% in the prior year quarter, driven by lower expense ratios and catastrophe-related charges[19]. - The adjusted year-to-date combined ratio (AYCR) improved to 95.5% from 97.8% in the prior year quarter, primarily due to better acquisition ratios[19]. - The combined ratio for North America Commercial improved to 82.6% for the three months ended September 30, 2025, down from 95.5% in the same period of 2024[67]. - The accident year combined ratio for International Commercial was 86.0% for the three months ended September 30, 2025, compared to 83.4% in 2024[67]. Investment Income - Total net investment income was $772 million, down 21% from the prior year quarter, but adjusted pre-tax income (APTI) basis net investment income increased 15% to $1.0 billion[10]. - Net investment income decreased by $48 million year-over-year to $120 million, mainly due to lower dividend income from Corebridge[25]. - For the three months ended September 30, 2025, net investment income was $772 million, a decrease from $973 million in the same period of 2024[59]. - Net investment income on Fortitude Re funds withheld assets was reported as a loss of $51 million for the three months ended September 30, 2024, compared to a loss of $29 million in 2025[49]. - Net investment income on Fortitude Re funds withheld assets was $(29) million for the three months ended September 30, 2025, compared to $(51) million in 2024[59]. Shareholder Returns and Equity - AIG returned approximately $1.5 billion to shareholders in Q3 2025, including $1.25 billion in share repurchases and $250 million in dividends[12]. - Book value per share increased to $75.45 as of September 30, 2025, a 2% increase from June 30, 2025[13]. - Total AIG common shareholders' equity as of September 30, 2024, was $45,039 million, up from $41,501 million as of June 30, 2025[61]. - Book value per share increased by 5.6% to $71.46 as of September 30, 2024, compared to the previous quarter[61]. - Total adjusted common shareholders' equity reached $46,582 million as of September 30, 2024, compared to $42,891 million as of June 30, 2025[61]. - Total financial and hybrid debt stood at $9,051 million as of September 30, 2025, representing 18.0% of total capital of $50,168 million[64]. Operational Costs and Expenses - Corporate and other general operating expenses improved by $58 million from the prior year quarter, reflecting a reapportionment of expenses[25]. - Interest expense decreased by $10 million from the prior year quarter, primarily due to debt reduction[25]. - AIG incurred restructuring and other costs of $137 million for the three months ended September 30, 2024, which increased to $153 million in 2025, reflecting a rise of 11.7%[49]. Strategic Initiatives - AIG announced strategic investments in Convex Group and Onex Corporation, and agreements to acquire renewal rights for Everest Group's global retail commercial insurance portfolios, representing $2 billion of aggregate premium[3]. - AIG's Travel business negatively impacted net premiums written by $193 million in the three months ended September 30, 2025[66]. Conference Call - AIG will host a conference call on November 5, 2025, at 8:30 a.m. ET to review these results[23].

AIG Reports Excellent Third Quarter 2025 Results Share NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today reported financial results for the third quarter ended September 30, 2025. "AIG had an exceptional third quarter. We successfully executed on multiple complex strategic transactions to further position AIG for the future while also delivering outstanding financial results,†said Peter Zaffino, AIG Chairman & Chief Executive Officer. "Last week, we announced investments in Con ...

Core Insights - American International Group, Inc. (AIG) is set to release its third-quarter 2025 results on November 4, with earnings expected at $1.68 per share and revenues at $6.9 billion [1][7] Earnings Estimates - The earnings estimate for the third quarter has remained stable over the past week, indicating a year-over-year increase of 36.6%, while revenues are projected to grow by 0.1% year-over-year [2] - For the full year 2025, the revenue estimate is $27.2 billion, with earnings per share expected to reach $6.48, reflecting a 30.9% year-over-year increase [3] Earnings Prediction Model - AIG currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), suggesting that the model does not predict an earnings beat for this quarter [4] Revenue Drivers - AIG's revenues in Q3 are anticipated to benefit from higher net investment income and underwriting income from the General Insurance business, particularly from strong performances in the Global Personal segments [5] - The Zacks Consensus Estimate for net investment income in General Insurance is $856 million, representing a 10.8% increase from the prior year, while underwriting income is estimated at $497.1 million, indicating a 13.8% rise [6] Challenges - Higher catastrophe losses across segments are expected to negatively impact underwriting results in the General Insurance business, with anticipated year-over-year revenue declines from North America and International units [8] - Despite cost-cutting measures, AIG's margins are likely to be affected by an elevated expense base due to increased losses and loss adjustment expenses incurred in Q3 [8]

Core Viewpoint - American International Group, Inc. (AIG) has underperformed the broader market over the past year, with a 2.8% gain compared to the S&P 500's 17.7% increase [2]. Company Overview - AIG is a New York-based insurance company valued at $43.7 billion, offering property-casualty insurance, life insurance, and retirement services [1]. Stock Performance - AIG's stock has shown marginal gains compared to the Invesco KBW Property & Casualty Insurance ETF, which has also gained slightly over the past year [3]. - In 2025, AIG's stock rose 8.5%, while the S&P 500 increased by 16.3% year-to-date [2]. Financial Results - AIG reported Q2 results with an adjusted EPS of $1.81, surpassing Wall Street expectations of $1.58. However, shares fell over 3% in the following trading session [5]. - The company's general insurance net premiums written were $6.9 billion, showing a slight year-over-year decline [5]. Earnings Forecast - Analysts project AIG's EPS to grow by 30.9% to $6.48 for the current fiscal year ending in December [6]. - AIG has consistently beaten consensus estimates in the last four quarters, indicating strong earnings performance [6]. Analyst Ratings - Among 23 analysts covering AIG, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, two "Moderate Buys," and 12 "Holds" [6]. - BMO Capital analyst Michael Zaremski maintained a "Hold" rating with a price target of $83, suggesting a potential upside of 5.1% from current levels [7]. Challenges - AIG's underperformance is attributed to increased catastrophe losses, social inflation, tariffs affecting margins, and regulatory scrutiny on AI-driven investments [4].

American International Group (AIG) has announced plans to acquire minority stakes in both specialty insurer Convex Group and asset manager Onex Corporation. Under the proposed agreements, AIG intends to obtain a 35% equity stake in Convex Group for around $2.1bn, as well as a 9.9% stake in Onex Corporation for about $646m. The deals are expected to close in the first half of 2026, contingent on regulatory clearance and customary closing requirements. Convex Group, which started operations in 2019, opera ...

Group 1 - Onex will acquire a 63% equity stake in Convex, a privately-held property and casualty insurer [1] - AIG will purchase a 35% equity stake in Convex [1]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund highlighted American International Group, Inc. (AIG) as a significant stock, which has seen a one-month return of -2.08% and a 52-week gain of 2.98% [2] - AIG's stock closed at $77.98 on October 29, 2025, with a market capitalization of $43.201 billion [2] Company Performance - AIG was among the bottom contributors to the fund's performance in Q3 2025, affected by broader industry challenges [3] - The company has experienced a decline in pricing benefits that have previously supported property and casualty insurers, impacting its recent performance [3] Hedge Fund Interest - AIG is not among the top 30 most popular stocks among hedge funds, although it saw an increase in hedge fund holdings from 49 to 52 in the second quarter [4] - Despite acknowledging AIG's potential, the analysis suggests that certain AI stocks may offer better upside potential with less downside risk [4]

Core Viewpoint - Convex Group Limited has established a new long-term ownership structure with Onex Corporation acquiring a 63% stake and AIG becoming a strategic minority investor with a 35% equity interest [1][2]. Ownership Structure - Onex Corporation will hold a leading 63% stake in Convex, while AIG will have a 35% equity interest as a strategic minority investor [1][2]. - Founding equity investors, excluding management, will sell their stakes, valuing Convex's common equity at $7 billion [2]. Strategic Investments - AIG will write a whole account quota share of Convex's business starting January 1, 2026, and will invest $2 billion over three years in Onex's diversified investment funds [2][3]. - AIG will acquire a 9.9% ownership stake in Onex Corporation for approximately $646 million [2]. Business Performance - Convex has achieved annual premium income of up to $6 billion and operates in various global jurisdictions, establishing itself as a major player in specialty insurance and reinsurance [4]. - The leadership and underwriting capabilities of Convex have been endorsed through this new relationship [3][5]. Management and Future Outlook - Both Onex and AIG will have representation on the Convex board, but Convex will maintain its independent strategy and underwriting approach [3]. - The transaction is expected to secure the long-term independence of Convex and present strategic opportunities for growth [5][6]. - AIG's investment reflects confidence in Convex's ability to deliver strong returns and sustained revenue growth [10][12].