AIG(US:AIG)2025-11-04 21:19Financial 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].