Bermudian-based reinsurer American International Group has reported net income of $1.1 billion in its second quarter compared with a net loss of $4 billion in the same period of last year.

AIG chairman and chief executive Peter Zaffino called the quarter “outstanding”.

He said: “The adjusted after-tax income per diluted share was $1.81, representing 56 per cent growth from the prior year quarter. This growth was driven by higher underwriting income of $626 million, higher net investment income of $955 million, and disciplined capital management.”

AIG also saw net premiums written of $6.9 billion, a decrease of 1 per cent year-over-year on a reported basis, but an increase of 1 per cent on a comparable basis.

“We continued to make significant progress on our long-term strategic, operational and financial objectives while navigating a dynamic macroeconomic environment,” Mr Zaffino said.

He added that against this backdrop, general insurance delivered excellent underwriting profitability in the second quarter and achieved a calendar year combined ratio of 89.3 per cent.

Total catastrophe-related charges were $170 million, representing 2.9 loss ratio points, reflecting a disciplined approach to managing volatility.

“General insurance net premiums written grew 1 per cent year-over-year on a comparable basis, driven by 4 per cent growth in North America commercial,” the CEO said. “Global personal net premiums written contracted 3 per cent primarily driven by changes to reinsurance structures in our high net worth business.”

This trend continued to drive profitability, but had a six-point negative impact to global personal’s top line growth in the quarter. Additionally, AIG had strong retention across its portfolio and strong new business in global commercial totaling $1.4 billion.

“We continued to execute on our disciplined capital management strategy, returning a total of $2 billion of capital to shareholders in the quarter, including $1.8 billion of share repurchases and $254 million of dividends,” Mr Zaffino said.

He said the firm ended the quarter with a debt to total capital ratio of 17.9 per cent and parent liquidity of $4.8 billion, giving AIG significant financial flexibility.

“In addition, Moody’s and S&P Global upgraded their financial strength ratings of our insurance subsidiaries during the quarter, affirming the strength of our business and our balance sheet,” Mr Zaffino said.

• For the full AIG Q2 2025 report, see Related Media

Download PDF File

Q2 2025 Earnings Release_FINAL for Immediate Release.pdf