American International Group delivered a strong underwriting-led performance in 2025, beating its profitability targets and returning nearly $7 billion to shareholders, as disciplined pricing and lower catastrophe losses lifted margins across its general insurance business.

For the year, the company reported net income of nearly $3.1 billion, or $5.43 per share, returning to a profit in the period (FY2024: more than $1.4 billion loss).

Revenue was reported as $27.46 billion.

The insurer reported adjusted after-tax income of $7.09 per diluted share for the full year, up 43 per cent from 2024, while core operating return on equity rose to 11.1 per cent, above the company’s stated target of more than 10 per cent. General insurance underwriting income increased 22 per cent year-on-year to $2.3 billion, with a calendar-year combined ratio of 90.1 per cent.

Fourth-quarter results reflected a sharp reduction in catastrophe losses, which fell to $125 million, compared with $325 million in the prior-year period. This helped to drive a 48 per cent increase in quarterly underwriting income to $670 million, while the accident-year combined ratio, excluding catastrophes, remained stable in the high-80s.

Peter Zaffino, AIG’s chairman and chief executive, said the results reflected “continued strong underwriting results and operational excellence”, adding that the company entered 2026 with strong momentum.

“Our January 1 reinsurance renewal activity resulted in enhanced terms and favourable pricing, reflecting the quality of our portfolio,” he said.

Capital management remained a key feature of the year. AIG returned $6.8 billion to shareholders in 2025, including $5.8 billion in share repurchases and approximately $1 billion in dividends. The company ended the year with a debt-to-total-capital ratio of 18 per cent, while book value per share rose to $76.44 at December 31.

AIG said it was on track to meet or exceed its investor-day financial objectives in 2026, citing strong pricing conditions and balance-sheet flexibility as it heads into the new underwriting year.

• For the complete AIG Q4 earnings release, see Related Media

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Q4 and FY 2025 Earnings Release Final for Immediate Release.pdf