American International Group (AIG) posted gains across several key metrics in its fourth quarter and full-year 2025 results, though the insurer still trails its closest global peer on underwriting efficiency and returns on capital.
For the fourth quarter, AIG reported net income per diluted share of US$1.35, down from US$1.43 a year earlier. Adjusted after-tax income (AATI) per diluted share came in at US$1.96, a 51% jump year-over-year.
The General Insurance segment recorded underwriting income of US$670 million for the quarter, a 48% increase, with a combined ratio of 88.8%. For the full year, underwriting income rose 22% to US$2.3 billion, with a combined ratio of 90.1% and a core operating return on equity of 11.1%.
Global Commercial net premiums written totalled US$4.5 billion in the fourth quarter, a 4% increase on a reported basis driven by 11% growth in new business. Full-year net premiums written were US$17.4 billion, up 4%.
AIG returned US$6.8 billion to shareholders over the course of 2025, comprising US$5.8 billion in share repurchases and roughly US$1 billion in dividends.
The full-year swing from a net loss per diluted share of US$2.17 in 2024 to net income of US$5.43 was not an operational turnaround but rather the clearing of a one-time accounting charge.
AIG recognised a US$4.7 billion non-cash loss in 2024 tied to the deconsolidation of Corebridge Financial, its former Life & Retirement unit, after waiving majority board representation in June of that year.
The charge was driven largely by US$7.2 billion in accumulated unrealized losses on Corebridge's corporate bond portfolio - a reflection, as Bloomberg noted, of how bonds written when interest rates were lower had declined in market value.
With that overhang removed, AIG's 2025 GAAP results now capture the underlying earnings power of its streamlined commercial property and casualty platform.
The results mark clear progress, but AIG still lags behind Chubb, its closest comparable global commercial insurer.
Chubb's full-year 2025 figures, as reported in its latest earnings release, showed a combined ratio of 85.7% and a core operating ROE of 15.9% - comfortably ahead of AIG's 90.1% and 11.1%, respectively.
Peter Zaffino (pictured above), AIG chairman and chief executive officer, highlighted several strategic milestones, including the December 2025 launch of Syndicate 2479, a Lloyd's special-purpose vehicle formed with Amwins and Blackstone-managed funds.
The syndicate began underwriting on January 1, 2026, with US$300 million in premium capacity and uses Palantir's Foundry platform for portfolio assessment.
Zaffino pointed to partnerships that he expects will contribute to earnings and ROE in 2026. "These include the formation of Syndicate 2479 with Blackstone and Amwins, an investment in CVC's new private equity secondaries evergreen platform, and the completion of our acquisitions of minority ownership stakes in Convex Group and Onex Corporation," he said.
On the reinsurance front, Zaffino said AIG's 1 January renewal activity yielded improved terms and favourable pricing, adding that the company is on track to achieve or exceed its Investor Day financial objectives.
