American International Group Inc Earnings
American International Group Inc (AIG) recently announced their financial results for the third quarter of 2025, showcasing strong financial performance and strategic advancements. AIG reported significant increases in both net income per diluted share, which rose to $0.93 (up 31% year-over-year), and adjusted after-tax income (AATI) per diluted share, which surged to $2.20 (up 77% year-over-year). The company's strategic initiatives, combined with a robust execution in underwriting and expense management, have significantly contributed to this impressive performance.
American International Group Inc Results
Key Financial Metrics
The company's updated financial performance for the third quarter of 2025 is as follows:
| Financial Metric | Current Quarter | Previous Year Quarter | Year-over-Year Change |
|---|---|---|---|
| Net Income (in millions) | $519 | $459 | +13% |
| Net Income per Diluted Share | $0.93 | $0.71 | +31% |
| Adjusted After-Tax Income (AATI) (in millions) | $1.2 billion | $804 million | +52% |
| Adjusted After-Tax Income per Diluted Share | $2.20 | $1.24 | +77% |
| General Insurance Underwriting Income (in millions) | $793 | $438 | +81% |
| Return on Equity (ROE) | 5.0% | Not provided | - |
| Core Operating ROE | 13.6% | Not provided | - |
AIG demonstrated marked improvement in key financial metrics, particularly in underwriting income, which increased by 81% year-over-year to $793 million, and the ROE of 5.0%, a measure of profitability relative to shareholders' equity. Additionally, the core operating ROE reached 13.6%, underscoring AIG's efficient deployment of resources to generate returns.
Revenue Breakdown
Segment Revenue Performance
The following table displays the performance across AIG's major business segments for Q3 2025:
| Segment | Net Premiums Written (NPW) | Year-over-Year Change |
|---|---|---|
| Total General Insurance | $6.2 billion | -2% on reported basis |
| North America Commercial | $2.4 billion | In line with prior year |
| International Commercial | $2.1 billion | +3% |
| Global Personal | $1.7 billion | -11% |
AIG's North America Commercial segment remained flat compared to the previous year, but on a comparable basis, showed a growth of 3% when adjusted for large transactions. The International Commercial segment experienced a 3% growth driven by an uptick in Global Specialty and Property lines. Despite a significant drop in the Global Personal segment NPW due to changes in reinsurance structures, profitability improved substantially with enhanced underwriting and cost management.
In-Depth Segment Analysis
AIG's North America Commercial segment maintained its footing with strong performance from Programs, Lexington, and Retail Casualty offsetting declines in Property. Meanwhile, the International Commercial operations showcased resilience, overcoming unfavorable prior year development with reduced catastrophe-related charges and strategic expense reallocations. The Global Personal division's NPW fell due to reinsurance adjustments but benefitted from improved acquisition ratios, driving healthier profitability metrics.
Key Developments
AIG embarked on several strategic initiatives this quarter. On October 30, 2025, they announced investments in Convex Group and Onex Corporation, positioning AIG to tap into dynamic niches of global specialty insurance and asset management. Additionally, the acquisition of renewal rights for Everest Group’s global retail commercial insurance portfolio, announced on October 27, endows AIG with access to $2 billion in aggregate premiums, boosting its international presence and underwriting capabilities.
Comments from Company Officers
Peter Zaffino, AIG Chairman & Chief Executive Officer, commented on the success of the quarter by highlighting the strategic investments and transactions. "These unique opportunities mark an important next step in AIG's strategy and were made available exclusively to us because of our strong brand, outstanding performance, and deep industry relationships. We expect these transactions to be earnings, EPS, and ROE accretive," he said. Zaffino also reiterated AIG's commitment to achieving its financial objectives outlined during Investor Day while maintaining optimism about future growth prospects.
Dividends and Share Repurchases
During the third quarter, AIG returned approximately $1.5 billion to shareholders, primarily through around $1.25 billion in share repurchases alongside common stock dividends topping $250 million. In recognition of its robust financial health, the Board of Directors declared a quarterly cash dividend of $0.45 per share, payable on December 30, 2025, reinforcing AIG's focus on delivering shareholder value.
American International Group Inc Stock Forecast
Considering AIG's notable financial performance and strategic acquisitions, the stock forecast looks promising for investors. The company currently stands with a market capitalization of approximately $49.8 billion. Assuming the continuation of current operational strengths and successful integration of new ventures, we project AIG's stock to trend upward. In the best-case scenario, we anticipate a high target price of $70 per share. Conversely, accounting for potential market volatility and integration risks, the low projection could hover around $58 per share. These projections highlight AIG's potential for sustained profitability and market competitiveness.
As AIG demonstrates resilience and strategic foresight, shareholders and market participants have strong incentives to stay watchful for future developments. With strategic expansions and sound financial governance, AIG appears well-poised to capitalize on future opportunities and navigate industry challenges effectively.
