American International Group (AIG) reported a strong second-quarter performance in 2025, bouncing back with a net profit of $1.1 billion (or $1.98 per diluted share), a sharp contrast to the $4.0 billion loss recorded in the same period last year.
Key Performance Metrics
<ul type="disc">
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Adjusted After-Tax Income (AATI) reached $1.0 billion ($1.81 per share), reflecting a 56% year-on-year growth.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">General Insurance underwriting income increased by 46%, totaling $626 million.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">The combined ratio improved to 89.3%, indicating better efficiency and profitability compared to 92.5% last year.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Investment income rose significantly to $1.5 billion, up 48%, driven by strong gains in equities and fixed-income assets.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Catastrophe losses dropped to $170 million, nearly half the $330 million reported in Q2 2024.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Net premiums written (NPW) stood at $6.9 billion, showing a modest 1% increase.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Capital returned to shareholders reached $2.0 billion, including $1.8 billion in share repurchases and $254 million in dividends.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Financial indicators remained solid, with a debt-to-capital ratio of 17.9% and $4.8 billion in parent company liquidity.</li>
</ul>
Leadership Commentary
&ldquo;We had an exceptional second quarter, with a 56% increase in adjusted after-tax income per share, driven by stronger underwriting results, higher investment returns, and prudent financial management.&rdquo; &mdash; Peter Zaffino, Chairman &amp; CEO
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Why It&rsquo;s Important
AIG&rsquo;s second-quarter results demonstrate a strong recovery and improved operational stability. Enhanced underwriting performance, lower catastrophe-related expenses, and rising investment gains contributed to the positive outcome. The company&rsquo;s focus on financial discipline&mdash;evident in solid liquidity and shareholder returns&mdash;further underpins its ongoing strength in the market.

American International Group (AIG) reported a strong second-quarter performance in 2025, bouncing back with a net profit of $1.1 billion (or $1.98 per ..

AIG Achieves Significant Q2 2025 Turnaround with $1.1 Billion