American International Group (AIG) Q4 2025 earnings summary

Executive summary

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

• General Insurance underwriting income increased 48% in Q4 to $670 million and 22% for the year to $2.3 billion, with strong operational execution and capital management.

• Returned $6.8 billion to shareholders in 2025, including $5.8 billion in share repurchases and $1.0 billion in dividends.

• Completed strategic acquisitions and partnerships, including stakes in Convex Group, Onex, and new syndicate and investment platforms.

• Leadership transition announced: CEO retiring, new President and CEO Elect joining in February.

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.

• General Insurance combined ratio improved to 88.8% in Q4 and 90.1% for the year; AYCR was 88.9% and 88.3%, respectively.

• Net investment income for FY25 was $4.2 billion, down 1% year-over-year; book value per share at year-end was $76.44, up 9%; adjusted tangible book value per share was $70.37, up 4%.

• Returned $6.8 billion to shareholders in 2025; quarterly dividend increased by 12.5%.

• Debt to total capital ratio at year-end was 18%.

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%.

• Expect low- to mid-teens net premiums written growth in General Insurance for 2026; expense ratio expected to improve further, targeting sub-30% by 2027.

• At least $1 billion in share repurchases planned for 2026, with additional buybacks from Corebridge proceeds.

• Management projects continued strong EPS growth and ROE through 2027.

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