Global insurer American International Group, Inc. (AIG) reported that its General Insurance (GI) underwriting income rose 48% year-over-year to $670 million in the fourth quarter of 2025, up from $454 million in the same period in 2024.

The increase was driven by lower catastrophe-related charges of $125 million, representing 2.1 loss ratio points, compared to $325 million, representing 5.5 loss ratio points, in the prior year quarter, more favourable prior year development, and lower acquisition expenses.

GI gross premiums written (GPW) remained relatively flat, with only a 1% increase to $8.1 billion for the quarter. Meanwhile, net premiums written (NPW) for the quarter were $6 billion, a 1% decrease year-over-year on a reported basis.

GI adjusted pre-tax income rose by 26% to $1.6 billion from the prior year quarter, driven by higher underwriting income and net investment income.

For Q4’25, GI’s combined ratio was 88.8%, compared to 92.5% in the prior year quarter, largely driven by the global commercial segment.

AIG explained that this quarter included favourable PYD, net of reinsurance and prior year premiums, of $116 million, compared to $82 million in the prior year quarter, primarily due to favourable development in North America Commercial, driven by US Financial Lines, Property and Canada Casualty.

In Q4’25, AIG’s total net investment income was $872 million, down 34% from $1.3 billion in the prior year quarter, driven by lower gains on the change in fair value and sale of shares from Corebridge and lower income on alternative investments, partially offset by higher income from fixed maturity securities.

For the current quarter, group-wide net income dipped to $735 million, compared to $898 million in the prior year quarter, primarily due to a change in unrealised losses related to AIG’s ownership interest in Corebridge, and a gain from the divestiture of the global personal travel business in the prior year, partially offset by the aforementioned GI’s higher underwriting income, net investment income, and tax benefit as a result of a one-time release of deferred income tax valuation allowance.

Finally, adjusted after-tax income for Q4’25 was $1.1 billion, compared to $817 million in the prior year quarter, again driven by higher underwriting income and net investment income in GI.

Looking at the full year 2025 results, GI underwriting income increased by 22% to $2.3 billion compared to $1.9 billion in 2024. GPW remained relatively flat at $35.8 billion, while NPW dipped by 1% to $23.7 billion.

Catastrophe-related charges dipped, representing 3.9 loss ratio points, compared to 5.0 loss ratio points in 2024.

For FY’25, the GI combined ratio was 90.1%, compared to 91.8% in the prior year, largely driven by North America Commercial.

Total net investment income for 2025 was $4.2 billion, down by 1% from $4.3 billion in 2024, due to a decrease in other investments, including lower gains on the change in fair value and on sale of shares and dividends from Corebridge, partially offset by higher income from fixed maturity securities.

Group-wide net income for 2025 was $3.1 billion, compared to a net loss of $1.4 billion in 2024. This increase was primarily due to the absence of a loss resulting from the deconsolidation of Corebridge in June 2024, as well as higher underwriting income and net investment income in GI, partially offset by net realised losses excluding Fortitude Re funds withheld assets, largely due to impairments on investments in real estate.

Lastly, adjusted after-tax income for 2025 was $4 billion, compared to $3.3 billion last year, reflecting higher underwriting income and net investment income in GI.

Peter Zaffino, Chairman & Chief Executive Officer, AIG, commented, “2025 was an exceptional year for AIG. We made tremendous progress against our strategy, delivered outstanding financial results, and achieved important milestones that have positioned AIG for a bright future. For the full year, adjusted after-tax income per diluted share increased 43% to $7.09. Core Operating ROE of 11.1% was above our 10% plus target for 2025.

“This performance was driven by AIG’s continued strong underwriting results and operational excellence, effective expense discipline and strategic capital deployment. Underwriting income of $2.3 billion grew 22%, and we achieved a calendar year combined ratio of 90.1%. We delivered on our disciplined capital management strategy in 2025, supported by our strengthened balance sheet and strong liquidity. For the full year, we returned $6.8 billion of capital to shareholders, including $5.8 billion of share repurchases and approximately $1.0 billion of dividends. We ended the year with a debt-to-total capital ratio of 18.0%.”

He continued, “Over the last two months, we announced several strategic partnerships that we expect will contribute to AIG’s earnings, earnings per share, 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. We have also made excellent progress on our conversion of Everest’s global retail portfolio. These innovative, capital-efficient transactions should enable us to grow, deliver earnings and improve ROE without adding complexity to our organisation.

“We have entered 2026 with strong momentum, and our January 1 reinsurance renewal activity resulted in enhanced terms and favourable pricing, reflecting the quality of our portfolio. We are off to a great start on our Investor Day guidance and are on track to achieve or even exceed our financial objectives. Thanks to the hard work and commitment of our talented colleagues, AIG is positioned for another exceptional year.”