Why Is American International Group (AIG) Up 1% Since Last Earnings Report?

Core Insights - American International Group (AIG) reported strong third-quarter 2025 results, with adjusted earnings per share of $2.20, exceeding the Zacks Consensus Estimate by 31% and reflecting a 77% year-over-year increase [3] - The company's adjusted operating revenues rose 3.2% year over year to $7.1 billion, surpassing the consensus mark by 3% [3] Financial Performance - AIG's total premiums for the quarter reached $6.1 billion, a 2.2% increase year over year [5] - Total net investment income fell 20.7% year over year to $772 million, missing the Zacks Consensus Estimate of $990 million [5] - Total benefits, losses, and expenses decreased by 7.6% year over year to $5.6 billion, aided by lower general operating and other expenses [6] - Adjusted return on equity improved by 470 basis points year over year to 11.6% [6] Segment Performance - General Insurance – North America Commercial: Net premiums written were stable at $2.4 billion, with underwriting income soaring 300% year over year to $384 million [7][8] - General Insurance – International Commercial: Net premiums written increased by 3% year over year to $2.1 billion, with underwriting income rising 3% to $330 million [9] - General Insurance – Global Personal: Net premiums written fell 11% year over year to $1.7 billion, impacted by the U.S. High Net Worth business [10] Operational Updates - Net investment income and other dropped 40% year over year to $72 million due to lower dividend income from Corebridge [12] - AIG's cash balance increased by 22% from the end of 2024 to $1.6 billion, while total assets rose 1.3% to $163.4 billion [13] Capital Deployment - AIG returned $1.3 billion to shareholders through share repurchases and paid $250 million in dividends during the third quarter [15] Market Outlook - Estimates for AIG have been trending upward, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [18]