American International Group (AIG) has posted impressive financial results for the third quarter ending September 30, 2025, with net income per diluted share rising 31% year-on-year to reach US$0.93.
Adjusted after-tax income (AATI) per diluted share saw a notable 77% increase, reaching US$2.20, reflecting the company’s strong performance. AIG’s net income for the quarter totalled US$519 million, marking a 13% rise, while AATI stood at US$1.2 billion, up 52% compared to the same period in 2024.
General Insurance underwriting income surged by 81%, totalling US$793 million. However, net premiums written for the quarter were US$6.2 billion, which represented a 2% decline on a reported basis and a 1% drop on a comparable basis.
AIG’s General Insurance combined ratio improved by 580 basis points to 86.8%, while the accident year combined ratio, as adjusted, remained stable at 88.3%. Net investment income was US$772 million, down 21%, but adjusted pre-tax income from investments rose 15% to US$1.0 billion.
The company returned approximately US$1.5 billion in capital to shareholders during the quarter, including US$1.25 billion in share repurchases and US$250 million in dividends. AIG’s return on equity (ROE) stood at 5.0%, with Core Operating ROE at 13.6%.
Strategic Investments and Acquisitions
On October 30, AIG announced significant strategic investments in Convex Group, a global specialty insurer, and Onex Corporation, a global asset manager. The company also disclosed definitive agreements to acquire the renewal rights to the majority of Everest Group’s global retail commercial insurance portfolios, which represent US$2 billion in aggregate premiums.
Earlier in 2025, AIG had reported a net profit of US$1.1 billion for the second quarter, marking a remarkable recovery from a US$4 billion loss during the same period in 2024. This improvement was attributed to strong performance in AIG’s core general insurance business and higher investment income.
Peter Zaffino, AIG Chairman and CEO, commented: “AIG had an exceptional third quarter. We successfully executed multiple complex strategic transactions to further position AIG for the future, while also delivering outstanding financial results.”
Zaffino added that the recent investments and agreements represent “an important next step” in AIG’s strategy. “These opportunities were made available to us exclusively because of our strong brand, outstanding performance, and deep industry relationships,” he said. The CEO also noted that these transactions are expected to be accretive to earnings, earnings per share (EPS), and return on equity (ROE).
Investment Portfolio Strategy
Earlier in the year, AIG revealed plans to increase its general insurance investment portfolio allocation to private credit from 8% to between 12% and 15%, and to raise its private equity allocation from 5% to a target range of 6% to 8%.
Zaffino concluded, “Our strong balance sheet and financial flexibility have enabled us to pursue compelling opportunities that expand our capabilities, elevate our financial performance, and continue to deliver returns to shareholders.”