American International Group Stock Earnings Reports

AIG reported an exceptionally strong Q3 2025 driven by General Insurance: adjusted after-tax income per diluted share of $2.20 (+77% YoY) and adjusted after-tax income of $1.2 billion (+52% YoY). Underwriting income grew to $793 million (+81% YoY). Key underwriting metrics remain strong — accident year combined ratio (as adjusted) for General Insurance was 88.3% (16th consecutive sub-90% quarter) and calendar year combined ratio improved to 86.8% (down 580 bps YoY). Segment highlights: North America Commercial showed solid targeted growth (Programs +27%, Western World +11%, Excess Casualty +8%) with continued property rate pressure; International Commercial had modest premium growth and strong Specialty/new business; Global Personal premiums declined modestly due to reinsurance actions but profitability improved. Capital and strategic actions were a focal point: AIG announced three strategic transactions — a 35% equity stake and whole-account quota share with Convex Group, a 9.9% equity stake and a $2 billion multi-year commitment with Onex Corporation, and purchase of renewal rights to ~ $2 billion GWP of Everest portfolios (paying ~$300M with contingent adjustments). Management expects these transactions to be earnings, EPS and ROE accretive within one year after closing and to close in H1 2026 (subject to approvals). Capital return activity: $1.5 billion returned in the quarter ( ~$1.25B buybacks, $250M dividends); YTD repurchases $5.3B; parent liquidity ~ $5.3B at quarter-end (and additional proceeds from recent Corebridge share sale). Financial position: debt-to-total-capital ~18%; book value per share $75.45; adjusted tangible book value $70.07. Investment portfolio: net investment income on APTI basis $1.0B (+15% YoY); continued shift toward higher-yielding assets and opportunistic private credit (private credit at $6.4B, target 12–15% of GI portfolio over time). Expense / efficiency: General Insurance expense ratio improving (30.9% in Q3; target <30% by 2027), with further productivity expected from GenAI initiatives. Management reiterated Investor Day targets (core operating ROE in 10–13% range YTD; Q3 annualized 13.6%) and signaled continued, but normalized, buybacks (~$1B run-rate for 2026) while pursuing selective inorganic opportunities that meet earnings/ROE thresholds.