AIG Reports $1.144 Billion Net Income in Q2 2025, Significant Turnaround from Previous Year

American International Group, Inc. (AIG) reported a significant turnaround in its financial performance for the second quarter of 2025, posting a net income of $1.144 billion, compared to a net loss of $3.884 billion in the same period last year. This improvement was largely driven by a substantial increase in net investment income, which rose to $1.466 billion from $990 million year-over-year, primarily due to favorable changes in the fair value of AIG's investment in Corebridge and gains on sales of shares. Total revenues for the quarter increased by 8% to $7.091 billion, up from $6.560 billion in the prior year, reflecting growth in premiums and investment income.

In terms of operational metrics, AIG's premiums written for the second quarter increased slightly to $5.877 billion from $5.748 billion, while net premiums earned rose to $5.878 billion from $5.749 billion. The company reported a loss ratio of 58.3%, down from 61.0% in the previous year, indicating improved underwriting performance. The combined ratio also improved to 89.3% from 92.5%, suggesting better overall profitability in its insurance operations.

Strategically, AIG has been active in managing its capital structure, repurchasing approximately 50 million shares of its common stock for about $4 billion during the first half of 2025. The company also declared a cash dividend of $0.45 per share, reflecting a 12.5% increase from previous dividends. Additionally, AIG issued $1.25 billion in new long-term debt in May 2025, which was part of its strategy to optimize its capital and liquidity position.

Geographically, AIG's North America Commercial segment reported net premiums written of $2.863 billion, a 4% increase from the previous year, while the International Commercial segment saw a 2% rise to $2.325 billion. However, the Global Personal segment experienced a decline, with net premiums written falling by 11% to $1.692 billion, primarily due to the sale of AIG's global individual personal travel insurance business in December 2024. The company continues to focus on profitable growth and underwriting excellence across its segments, despite facing challenges such as competitive pressures and economic volatility.

Looking ahead, AIG remains cautiously optimistic about its financial outlook, emphasizing its commitment to maintaining strong capital positions and effective risk management practices. The company is focused on leveraging its diversified portfolio and global presence to navigate market conditions and capitalize on growth opportunities in the insurance sector.