American International Group (AIG) Posts 51% Income Surge in Q4 Driven by Strong Underwriting Results

Core Insights - American International Group Inc. (AIG) reported a significant 51% year-over-year increase in Q4 adjusted after-tax income, reaching $1.96 per diluted share for 2025 [1] - The company generated $4 billion in adjusted after-tax income and $2.3 billion in underwriting income for the full year, marking a 22% increase compared to 2024 [1][2] Financial Performance - AIG's capital management strategy was aggressive, returning $6.8 billion to shareholders in 2025 through $5.8 billion in share repurchases and $1 billion in dividends [2] - The company experienced strong growth in international commercial new business, although it faced challenges in North America with a contraction in retail property and personal net premiums due to reduced market appetite and higher reinsurance costs [2] Future Outlook - For 2026, AIG forecasts net premiums written growth in the low to mid-teens, supported by various organic initiatives and strategic transactions [3] - Management aims to improve operational efficiency, targeting an expense ratio below 30% by 2027, and is implementing AI agents to reduce cycle times for underwriters [3] - AIG plans to continue its robust share repurchase program, with at least $1 billion allocated for 2026 [3] Business Segments - AIG provides insurance products for commercial, institutional, and individual customers, operating through three segments: North America Commercial, International Commercial, and Global Personal [4]