American International Group (AIG) has released its financial results for the third quarter ended September 30, reporting net income per diluted share of US$0.93, a 31% increase year-on-year.
Adjusted after-tax income (AATI) per diluted share stood at US$2.20, up 77% from the same period last year.
The company posted net income of US$519 million, representing a 13% rise, while AATI reached US$1.2 billion, up 52% year-on-year. General Insurance underwriting income totalled US$793 million, an increase of 81%. Net premiums written for the quarter were US$6.2 billion, showing a 2% decrease on a reported basis and a 1% decrease on a comparable basis.
AIG’s General Insurance combined ratio improved by 580 basis points to 86.8%. The accident year combined ratio, as adjusted, remained steady at 88.3%. Net investment income was US$772 million, down 21%, while net investment income on an adjusted pre-tax income basis rose 15% to US$1.0 billion.
During the quarter, AIG returned about US$1.5 billion of capital to shareholders, including US$1.25 billion in share repurchases and US$250 million in dividends. Return on equity (ROE) was 5.0%, with Core Operating ROE at 13.6%.
On October 30, AIG also announced 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 for the majority of Everest Group’s global retail commercial insurance portfolios, representing US$2 billion in aggregate premium.
Earlier in the year, AIG reported a US$1.1 billion net profit for the second quarter of 2025, marking a significant turnaround from a US$4 billion loss in the same period last year. The improvement was attributed to a strong performance in the company’s core general insurance business and higher investment income.
Peter Zaffino (pictured above), AIG chairman and CEO, said, “AIG had an exceptional third quarter. We successfully executed on multiple complex strategic transactions to further position AIG for the future while also delivering outstanding financial results.”
He noted that the recent investments and agreements “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.” Zaffino said the company expects these transactions to be accretive to earnings, EPS and ROE.
Earlier in the year, AIG has announced plans to increase its general insurance investment portfolio allocation to private credit from 8% to between 12% and 15%, and to private equity from 5% to a target range of 6% to 8%.
“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,” Zaffino said.
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