AIG Reports Exceptional Third Quarter 2025 Results

Peter Zaffino, AIG’s Chairman and Chief Executive Officer, emphasized the company’s strategic initiatives during the quarter. He stated, “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.”

Among the key strategic moves, AIG announced significant investments in Convex Group, a global specialty insurer, and Onex Corporation, a global asset manager. Additionally, the firm entered into agreements to acquire the renewal rights of Everest Group’s global retail commercial insurance portfolios. These transactions are expected to be accretive to earnings, earnings per share (EPS), and return on equity (ROE), marking a pivotal moment in AIG’s growth trajectory.

The third quarter results revealed remarkable growth in key financial metrics. Adjusted after-tax income per diluted share soared by 77% compared to the same period last year, reaching $2.20. This surge reflects AIG's adeptness in underwriting, strategic repositioning of its investment portfolio, effective expense management, and disciplined capital deployment.

The company’s General Insurance segment reported an underwriting income of $793 million, representing an 81% increase from the prior year quarter. This growth was observed across all three segments of the business, showcasing AIG’s strong market presence and operational efficiency.

The combined ratio, a critical measure of underwriting profitability, improved to 86.8%, marking a significant 580 basis point enhancement year-over-year. Furthermore, the adjusted accident year combined ratio also exhibited strength at 88.3%, indicating robust underwriting fundamentals.

AIG’s core operating ROE increased to 13.6% for the third quarter, up from 10.9% for the first nine months of 2025. This upward trend in ROE underscores the company's effective capital management and its ability to generate sustainable profits for its shareholders.

AIG's strong balance sheet and financial flexibility have enabled the company to pursue strategic opportunities while continuing to deliver value to its shareholders. During the quarter, AIG returned approximately $1.5 billion of capital to shareholders, bringing the total for the year to $6 billion. Zaffino expressed confidence in the company’s ongoing trajectory, stating, “We are on track to achieve the financial objectives that we set at Investor Day, and I am very confident in AIG’s ability to continue to drive sustained, profitable growth and long-term value for our company and all of our stakeholders.”

The third quarter results from AIG reflect not only exceptional financial performance but also a forward-looking strategy aimed at enhancing its market position. With significant investments and a commitment to shareholder returns, AIG is well-positioned for continued growth and profitability in the coming years. As the company navigates a complex insurance landscape, its strategic decisions made in this quarter will likely play a crucial role in shaping its future success.