Global insurer American International Group, Inc. (AIG) has reported that its General Insurance (GI) underwriting income rose 81% year-over-year, reaching $793 million for the third quarter of 2025, compared to $437 million in the same period last year.
GI gross premiums written (GPW) increased by 1% to $8.7 billion for the quarter, compared to $8.6 billion in Q3’24. Meanwhile, net premiums written (NPW) for the quarter were $6.2 billion, a 2% decrease year-over-year on a reported basis, or a 1% decrease on a comparable basis from $6.4 billion.
GI adjusted pre-tax income rose by 44% to $1.7 billion from the prior year quarter, driven by higher underwriting income as well as higher net investment income.
The third quarter reported total catastrophe-related charges of $100 million, representing 1.6 loss ratio points, compared to $417 million, representing 6.9 loss ratio points, in Q3’24.
The GI combined ratio was 86.8%, compared to 92.6% in the prior year quarter, with the improvement seen in both the loss ratio and expense ratio. The accident year combined ratio, as adjusted (AYCR) for Q3’25, is 88.3%, which is flat year-over-year.
AIG explained that Q3’25 included favourable PYD, net of reinsurance and prior year premiums, of $180 million, compared to $165 million in Q3’24, primarily driven by favourable development across all reporting lines, including North America Commercial, Global Specialty, and short-tail Property in International Commercial, partially offset by adverse development in UK/Europe Casualty and Financial Lines.
AIG’s net investment income decreased by 21% to $772 million from $973 million in Q3’24, primarily due to a change in fair value of AIG’s equity interest in Corebridge, partially offset by higher income from fixed maturity securities and improved alternative investment income.
For Q3’25, net income was $519 million, compared to $459 million in Q3’24, driven by the aforementioned higher underwriting income and higher net investment income in GI, partially offset by net realized losses excluding Fortitude Re funds withheld assets, mainly due to impairments on investments in real estate funds, and an increase in unrealized losses related to AIG’s ownership interest in Corebridge.
Finally, adjusted after-tax income for Q3’25 is $1.2 billion, compared to $804 million a year earlier, reflecting higher underwriting income and higher net investment income in GI.
The solid quarter performance comes after AIG announced strategic investments in Convex Group, a privately held global specialty insurer, and Onex Corporation, a global asset manager
Earlier in October, the insurer entered definitive agreements to acquire the renewal rights for a majority of Everest Group’s global retail commercial insurance portfolios, representing $2 billion of aggregate premium
Peter Zaffino, Chairman & Chief Executive Officer, AIG, commented, “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. Last week, we announced investments in Convex Group, a global specialty insurer, and Onex Corporation, a global asset manager.
“We also entered into agreements to acquire the renewal rights of Everest Group’s global retail commercial insurance portfolios. These unique opportunities mark an important next step in AIG’s strategy and were made available exclusively to us because of our strong brand, outstanding performance and deep industry relationships. We expect these transactions to be earnings, EPS and ROE accretive.”
He continued, “In the third quarter, we delivered tremendous EPS and ROE results. Adjusted after-tax income per diluted share increased 77% from the prior year quarter to $2.20. This significant growth reflects AlG’s strength in underwriting, the focused repositioning of our investment portfolio, our expense management and our disciplined deployment of capital. General Insurance underwriting income grew 81% from the prior year quarter to $793 million, with growth across all three segments. The combined ratio was 86.8%, a 580 basis point improvement year over year, and the accident year combined ratio, as adjusted, was 88.3%, an impressive result. Core Operating ROE increased to 13.6% for the third quarter and was 10.9% for the first nine months of 2025.
“Our strong balance sheet and financial flexibility have enabled us to pursue compelling opportunities that expand our capabilities, elevate our financial performance, and continue to deliver returns to shareholders. This quarter, we returned approximately $1.5 billion of capital to shareholders, bringing our year-to-date total to $6 billion. 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.”
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