American International Group (AIG) Q4 2025 earnings summary

Executive summary

• Adjusted after-tax income per diluted share rose 51% year-over-year in Q4 to $1.96, and 43% for the full year to $7.09; net income per diluted share for FY25 was $5.43, reversing a prior year loss.

• General Insurance underwriting income increased 48% in Q4 and 22% for the year, reaching $2.3 billion, with combined ratio improving to 90.1% and AYCR to 88.3%.

• $6.8 billion was returned to shareholders in 2025, including $5.8 billion in share repurchases and $1 billion in dividends.

• Strategic transactions included acquisitions and partnerships with Convex Group, Onex, Blackstone, Amwins, and CVC, plus the launch of Syndicate 2479.

• Accelerated rollout of GenAI initiatives and leadership transition with a new President and CEO Elect appointed.

Financial highlights

• Q4 adjusted after-tax income was $1.1 billion ($1.96 per share), up 51% year-over-year; Q4 net income per diluted share was $1.35.

• Q4 underwriting income was $670 million, up 48% year-over-year; full year underwriting income reached $2.3 billion.

• Net investment income for FY25 was $4.2 billion, down 1% year-over-year; on an APTI basis, investment income rose 8% to $3.8 billion.

• Book value per share at year-end was $76.44, up 9% from prior year; adjusted tangible book value per share was $70.37, up 4%.

• Weighted average diluted shares outstanding decreased from 657.3 million to 570.3 million year-over-year.

Outlook and guidance

• 2025 performance met or exceeded multi-year targets: operating EPS CAGR of 43%, core operating ROE of 11.1%, and dividends per share CAGR of 12%.

• Expense ratio improved to 31.1% for 2025, with a target of sub-30% by 2027.

• Management projects continued strong EPS growth, ROE, and at least $1 billion in share repurchases for 2026.

• Strategic partnerships and acquisitions are expected to contribute to earnings and ROE in 2026.

• January 1 reinsurance renewals achieved enhanced terms and favorable pricing, supporting positive momentum into 2026.