American International Group (NYSE:AIG) executives highlighted strong earnings growth, improved underwriting results, and several strategic transactions during the company’s fourth-quarter and full-year 2025 earnings call, while also outlining expectations for premium growth in 2026 and providing an update on reinsurance renewals and artificial intelligence initiatives.
Q4 and full-year 2025 results
Chairman and CEO Peter Zaffino said AIG delivered adjusted after-tax income per diluted share of $1.96 in the fourth quarter, up 51% year-over-year, supported by underwriting income of $670 million, up 48%. Global Commercial net premiums written grew 3% in the quarter, with Zaffino noting growth despite a contraction in North America retail property tied to a reduced appetite in the current market environment. International Commercial new business rose 14%.
For the full year, Zaffino reported adjusted after-tax income per diluted share of $7.09, up 43% year-over-year, and adjusted after-tax income of $4.0 billion, up 24%. Underwriting income totaled $2.3 billion, up 22%, which Zaffino described as the first year since 2008 that AIG produced more than $2 billion in underwriting income excluding divested businesses.
Global Commercial net premiums written were $17.4 billion, up 3% year-over-year (or 4% when adjusting for a prior-year casualty closeout transaction). AIG’s full-year accident year combined ratio was 88.3%, and the calendar year combined ratio was 90.1%.
Segment performance, pricing, and reserves
CFO Keith Walsh said General Insurance net premiums written were $6.0 billion in Q4, up 1%, and General Insurance posted an accident year combined ratio (as adjusted) of 88.9%. Catastrophe losses were $125 million in the quarter, or 2.1 loss ratio points, “predominantly driven by Hurricane Melissa.” Prior-year development was $116 million favorable, including $120 million of favorable reserve development.
Within North America Commercial Insurance, Q4 net premiums written rose 3%, led by Programs (up 17%), Western World (up 14%), and Excess Casualty (up 11%), partly offset by declines in Retail and Lexington property (down 19% and 10%, respectively). North America Commercial’s calendar year combined ratio was 84.7%, which Walsh called “an outstanding result,” improving 14.1 points year-over-year.
International Commercial net premiums written increased 4% in Q4, led by Global Specialty (up 9%). Global Personal net premiums written fell 6%, largely due to the High Net Worth quota share reinsurance treaty that began at 1/1/2025, though Global Personal’s accident year combined ratio (as adjusted) improved to 95.3%.
Executives also discussed pricing conditions. For the full year, AIG said Global Commercial lines pricing (rate and exposure) increased 2% overall, with a 6% increase in North America and a 1% decrease in International. North America property pricing was cited as pressured, with retail property pricing down 10% for the year and excess and surplus lines property down 13%. In contrast, management described North America casualty pricing as favorable and above loss-cost trend, with mid-teens increases in wholesale and excess casualty.
On reserves and underwriting margins in casualty, Walsh said AIG has been conservative and “putting extra margin in for our longer tail lines,” reflecting macro uncertainty and intended to cover risks such as social inflation and rising litigation costs, rather than deterioration in the underlying portfolio.
Investment income, expenses, and capital return
Net investment income on an APTI basis was $954 million in Q4, up 9% year-over-year, and $3.8 billion for the full year, up 8%, which management attributed to shifting to higher-yielding assets while maintaining strong credit quality. Walsh said General Insurance net investment income reached $3.4 billion for 2025, up 12%.
On expenses, Zaffino said AIG ended 2025 with a General Insurance expense ratio of 31.1%, down 90 basis points, and reiterated the Investor Day goal of a sub-30% expense ratio by 2027. In Q&A, management emphasized that 2025 included a “pushdown” of parent expenses into the business as part of the Lean Parent initiative, calling Q4 the final quarter for that reallocation discussion and stating it expects a lower expense ratio run rate in 2026 versus 2025.
AIG returned $6.8 billion of capital to shareholders in 2025, including $5.8 billion of share repurchases and $1.0 billion in dividends, and increased its quarterly dividend by 12.5%. For 2026, Walsh said AIG intends to repurchase at least $1 billion of common shares, with the “vast majority” of proceeds from further Corebridge stake sales expected to go toward additional repurchases.
Reinsurance renewals and strategic transactions
Zaffino said AIG achieved improved terms and favorable pricing at January 1 renewals, citing a weighted average risk-adjusted rate decrease “in excess of 15%” on the property catastrophe program. He also said AIG held firm on attachment points and described increased efficiency in aggregate protection. On casualty, he said AIG renewed its treaty with “exceptional pricing and terms,” with the North America quota share ceding commission remaining in the low thirties and the ability to add the Everest portfolio into the treaty without an increase in nominal cost.
Management also updated investors on several transactions announced in Q4, which Zaffino characterized as capital-efficient and expected to contribute to earnings and ROE in 2026:
- Everest renewal rights deal: AIG said it now expects the renewable premium of the Everest Global Retail Insurance portfolio to be close to $1.8 billion, which would reduce the purchase price estimate from about $300 million to $270 million, with potential additional downward adjustments of up to $70 million if less than 80% of the portfolio is renewed. AIG accelerated conversion of $65 million in gross premiums written in Q4 and reported a January retention rate of 75%, representing about $180 million of gross premiums written.
- Convex investment: AIG invested in Convex Group, taking an approximately 35% equity interest, along with a 9.9% ownership stake in Convex’s majority owner, Onex Corporation. The transaction closed on February 6 and is expected to be accretive within the year. AIG also took a 7.5% whole account quota share of Convex’s business for 2026, rising to 10% in 2027 and 12.5% in 2028 and thereafter.
- Special-purpose vehicles: After launching Syndicate 2478 earlier in the year, AIG formed Syndicate 2479 in December with Amwins and Blackstone, with stamp capacity of $300 million of premium income.
GenAI initiatives, 2026 growth outlook, and leadership transition
Zaffino and other executives detailed expanding use of GenAI in underwriting, claims, and portfolio evaluation. AIG said Underwriting by AIG Assist has been expanded to seven additional lines of business, including Lexington. Zaffino cited a 26% year-over-year increase in submission count in Lexington and said Lexington Middle Market Property’s submit-to-bind ratio increased 35% after deploying the tool. For 2026, management’s GenAI priorities include broader deployment of underwriting and claims tools, enhancing AIG’s ontology/digital twin, and building an “orchestration layer” to coordinate AI agents across workflows.
Looking to 2026, Zaffino said AIG expects low- to mid-teens net premiums written growth in General Insurance, attributing expected momentum to multiple sources, including organic initiatives, benefits from reinsurance renewals, the Everest conversion, the Convex quota share, SPVs, and changes to the High Net Worth quota share.
Finally, Zaffino reiterated a previously announced leadership transition: he plans to retire as CEO and become Executive Chair of the Board, while Eric Andersen will join AIG on February 16 as President and CEO-elect. Zaffino said Andersen is committed to AIG’s Investor Day financial guidance and strategic objectives.
About American International Group (NYSE:AIG)
American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.
The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.
