American International Group (AIG) has reported net income attributable to its common shareholders of $1.14bn for the second quarter of 2025 (Q2 2025), returning to profit from a $3.9bn net loss in the same quarter of the previous year. 

For the Q2 ended on 30 June 2025, the insurer’s earnings per diluted share for common shareholders was $1.98, in contrast to a net loss of $5.96 per share in the same period last year.  

The increase in year-over-year earnings is largely attributed to the impact of a net loss of $6.67 per diluted common share from the deconsolidation of Corebridge Financial in June 2024. 

The company’s adjusted after-tax income attributable to its common shareholders rose to $1bn for the quarter, up from $771m in the previous year’s quarter.  

This improvement reflects increased underwriting income and net investment income in the General Insurance sector, along with better performance in other operations. 

AIG’s total net investment income for the quarter reached $1.5bn, a 48% increase.  

This growth primarily stems from a change in the valuation of AIG’s equity in Corebridge and an uptick in income from fixed maturity securities available for sale. 

The company returned $2bn to its shareholders through the repurchase of $1.8bn worth of common stock (21 million shares) and the payment of $254m in common stock dividends. 

In the General Insurance segment, net premiums written were marginally lower on a reported basis (by 1%) at $6.9bn. There was 3% growth in Global Commercial.  

General Insurance underwriting income climbed by 46% to $626m, bolstered by reduced catastrophe-related charges and a decrease in acquisition expenses. 

The company’s corporate and other general operating expenses saw a $94m improvement compared to the previous year’s quarter, attributed to cost savings from the AIG Next initiative and the reallocation of expenses to General Insurance operations.  

AIG chairman and CEO Peter Zaffino said: “AIG delivered an outstanding second quarter. The adjusted after-tax income per diluted share was $1.81, representing 56% growth from the prior-year quarter.  

“We have tremendous momentum heading into the second half of 2025 and remain very confident in our ability to achieve our long-term financial targets while delivering exceptional value for all our stakeholders.” 

The insurer reported that net income attributable to its common shareholders stood at $1.84bn for the six-month period, as against a net loss of $2.78bn recorded in the corresponding period in the prior year.  

Last month, AIG appointed John Neal as president of its General Insurance division, with his tenure set to commence on 1 December 2025.