American International Group, Inc posts strong FY25 earnings as underwriting revenue rises; Q4 earnings are improving
American International Group, Inc. (NYSE: AIG) reported improved full-year 2025 earnings and strong fourth-quarter underwriting performance, supported by commercial insurance growth, better consolidated margins and targeted capital returns, with the presentation of fourth-quarter and full-year 2025 financial results dated Feb. 11, 2026.
Q4 2025 great pictures
AIG reported adjusted after-tax income (AATI) per diluted share of $1.96, up 51% year over year. Net income per diluted share was $1.35, compared to $1.43 last year.
In General Insurance, underwriting revenue increased 48% year over year to $670 million. The combined calendar year ratio improved to 88.8%, reflecting lower catastrophe losses and improved expense ratios. The combined annual accident rate (as adjusted) stood at 88.9%.
Global commercial net premiums written increased 4% year over year to $4.5 billion, driven by 11% growth in new business. AIG returned $809 million in cash to shareholders during the quarter, including $567 million in share repurchases and $242 million in dividends. Return on equity was 7.2%, while core operating ROE was 11.7%.
Performance of the year 2025
In the full year 2025, AIG reported AATI per diluted share of $7.09up 43% per yearcompared to $4.95 in 2024. Net income per diluted share was $5.43compared to the net loss in the prior year, which had the effect of the accounting related liquidation.
Revenue under General Insurance increased 22% year-over-year to $2.3 billion. The combined calendar year rate improved to 90.1%, while the combined risk year rate (as adjusted) was 88.3%.
Global net commercial premiums written reached $17.4 billion, up 4% year-over-year, driven by 9% growth in new business. Net investment income on a pre-tax adjusted basis increased 8% to $3.8 billion, reflecting higher yields in the fixed income and loan portfolios.
AIG is back $6.8 billion in cash to shareholders by 2025including $5.8 billion in share repurchases again approximately $1.0 billion in dividends. ROE for the full year was 7.5%while Core operating ROE was 11.1%.
Segment trends
In North America CommercialUnderwriting revenues increased significantly in Q4, supported by lower catastrophe losses and favorable prior-year developments. I The combined calendar year average has improved significantlyshowing margin gains in major lines.
International Commercial delivered steady premium growth, although underlying income moderated year-on-year due to higher loss and expense ratios. Universal Personal Insurance showed an improvement in the combined risk ratios for the year, supported by cost reductions and portfolio actions, despite lower premium volumes after the previous pruning of the portfolio.
Financial position and perspective
AIG expires in 2025 with the total debt-to-capital ratio is about 18%within the target range of the measure. The company reported that the amount under the insurance is strong and high development of financial strength measurement in 2025 from major rating agencies.
Management said 2025 marked strong progress against its multi-year financial targets, as well as improvements in operating income growth, underwriting and financial performance. The group expects continued benefits from portfolio actions, cost rationalization and exceptional growth in commercial lines.
Summary
AIG presented strong earnings through 2025, supported by higher revenues, improved consolidated margins and strong commercial insurance growth. Fourth quarter profits reflected lower disaster losses and better cost management. With continued capital returns and a strengthened balance sheet, the insurer enters 2026 with improved operational momentum.
