AIG Reports Excellent Third Quarter 2025 Results

Core Insights - AIG reported exceptional financial results for Q3 2025, with significant growth in earnings and strategic transactions aimed at positioning the company for future success [1][2][3] Financial Performance - Adjusted after-tax income per diluted share increased by 77% year-over-year to $2.20, while net income attributable to AIG common shareholders rose by 13% to $519 million [5][6][7] - General Insurance underwriting income grew by 81% year-over-year to $793 million, with a combined ratio of 86.8%, reflecting a 580 basis point improvement [3][6][15] - Net investment income decreased by 21% to $772 million, but adjusted pre-tax income on an APTI basis increased by 15% to $1.0 billion [8][6] Shareholder Returns - AIG returned approximately $1.5 billion to shareholders in Q3 2025, including $1.25 billion in share repurchases and $250 million in dividends, bringing the year-to-date total to $6 billion [4][9][6] Strategic Initiatives - The company announced investments in Convex Group and Onex Corporation, and agreements to acquire renewal rights for Everest Group's global retail commercial insurance portfolios, expected to be accretive to earnings [2][6] General Insurance Segment - Net premiums written (NPW) for General Insurance were $6.2 billion, a decrease of 2% year-over-year, with underwriting income significantly boosted by lower catastrophe-related charges [15][12] - The combined ratio for General Insurance improved to 86.8%, with a flat accident year combined ratio of 88.3% [15][3] Operational Metrics - Core Operating ROE increased to 13.6% for Q3 2025, compared to 10.9% for the first nine months of 2025 [3][10] - Book value per share rose to $75.45, reflecting a 2% increase from the previous quarter [10][6]