American International Group, Inc. ( (AIG) ) has released its Q2 earnings. Here is a breakdown of the information American International Group, Inc. presented to its investors.
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American International Group, Inc. (AIG) is a prominent global insurance organization providing a wide range of insurance solutions to businesses and individuals in over 200 countries. The company operates primarily in the insurance sector, offering products and services through its subsidiaries and affiliates.
In the second quarter of 2025, AIG reported a significant turnaround in its financial performance, with a net income of $1.1 billion compared to a net loss of $4.0 billion in the same quarter of the previous year. The adjusted after-tax income per diluted share increased by 56% year-over-year, reaching $1.81. This improvement was attributed to higher underwriting income and increased net investment income.
Key financial highlights include a 46% increase in General Insurance underwriting income to $626 million, and a 48% rise in net investment income to $1.5 billion. AIG’s return on equity stood at 11.0%, with a core operating return on equity of 11.7%. The company also returned $2.0 billion to shareholders through share repurchases and dividends during the quarter.
AIG’s strategic focus on disciplined capital management and operational improvements has been reflected in its financial results. The company reported a General Insurance combined ratio of 89.3%, indicating strong underwriting profitability. Additionally, AIG’s financial strength ratings were upgraded by Moody’s and S&P Global, highlighting the robustness of its business and balance sheet.
Looking ahead, AIG remains confident in its ability to achieve long-term financial targets and deliver value to stakeholders. The company is poised to continue its momentum into the second half of 2025, driven by strategic initiatives and a strong financial position.