AIG reported net income attributable to common shareholders of $735m for the fourth quarter of 2025 (Q4 2025) compared to $898m in the prior-year quarter.

In general insurance, its property and casualty (P&C) business, gross written premiums (GWP) totalled $8.07bn in the quarter versus $8.02bn a year ago.

Net written premiums (NWP) were $6.04bn, down 1% compared with $6.06bn in the Q4 2024.

The division’s combined ratio improved to 88.8% from 92.5%, reflecting lower catastrophe losses.

North America commercial posted NWP of $2.29bn, up 2.8%, and a combined ratio of 84.7%, improving from 98.8%.

For 2025, net income attributable to AIG common shareholders came to $3.1bn, versus a net loss of $1.4bn a year earlier.

The move from a net loss per diluted share of $2.17 in 2024 to net income of $5.43 in 2025 was linked to the absence of a one-time accounting charge rather than an operational shift.

In Q4, total net investment income was $872m, down 34% from $1.3bn in the prior-year quarter.

For the full year, general insurance GWP changed slightly at $35.83bn, while the combined ratio was 90.1% compared to 91.8%.

AIG recorded a $4.7bn non-cash loss in 2024 related to the deconsolidation of Corebridge Financial, its former Life & Retirement unit, after it waived majority board representation in June of that year. 

Total net investment income for 2025 was $4.2bn, down 1% from $4.3bn, primarily due to a decline in other investments.

Over the year, underwriting income increased by 22% to $2.3bn, with a combined ratio of 90.1% and a core operating return on equity of 11.1%. Full-year NWP were $17.4bn, up 4%.

AIG said it returned $6.8bn to shareholders during 2025, comprising $5.8bn in share repurchases and roughly $1bn in dividends.

AIG chairman and CEO Peter Zaffino said: “2025 was an exceptional year for AIG. We made tremendous progress against our strategy, delivered outstanding financial results, and achieved important milestones that have positioned AIG for a bright future.”

AIG appointed Eric Andersen as president and CEO-elect, succeeding Zaffino, who will transition to the role of executive chair.   

Zaffino will leave his position as CEO by mid-year, with the appointment of Andersen as president and CEO-elect taking effect on 16 February. 

In recent months, AIG entered several new partnerships and investments including joint ventures with Blackstone and Amwins, an investment in CVC’s private equity platform, and minority acquisitions in Convex Group and Onex Corporation.