AIG Swings to Profit, Boosted by Continuing Operations & Share Buybacks

Ticker: AIG · Form: 10-Q · Filed: Nov 5, 2025 · CIK: 5272

Sentiment: bullish

Topics: Insurance, Financial Services, Earnings, Share Buybacks, Profitability, 10-Q, Investment Income

Related Tickers: AIG, CB, TRV

TL;DR

**AIG's back in the black with solid continuing ops and aggressive buybacks, making it a strong buy for long-term value.**

AI Summary

AMERICAN INTERNATIONAL GROUP, INC. (AIG) reported a significant increase in net income attributable to AIG common shareholders for the nine months ended September 30, 2025, reaching $2,361 million, a substantial turnaround from a net loss of $2,324 million in the prior year. This improvement was largely driven by the absence of a $3,580 million loss from discontinued operations recorded in 2024. Income from continuing operations before income tax expense also rose to $3,218 million for the nine-month period in 2025, up from $2,324 million in 2024. Total revenues for the nine months increased slightly to $20,225 million from $20,074 million, despite a decrease in total net realized losses to $851 million from $434 million. Premiums saw a modest increase to $17,720 million from $17,564 million. The company's total assets grew to $163,415 million as of September 30, 2025, from $161,322 million at December 31, 2024, primarily due to an increase in fixed maturity securities available for sale to $71,184 million from $64,006 million. AIG also significantly reduced its outstanding common shares through repurchases, with treasury stock increasing by $5,094 million to $70,667 million for the nine months ended September 30, 2025. Diluted EPS from continuing operations increased to $4.08 for the nine months ended September 30, 2025, compared to $2.59 in the prior year.

Why It Matters

AIG's strong return to profitability, driven by continuing operations and strategic share repurchases, signals a more stable and focused insurance giant. For investors, the significant increase in net income and diluted EPS from continuing operations, coupled with a reduction in outstanding shares, suggests improved shareholder value and operational efficiency. Employees may see enhanced job security and potential for growth within a healthier company. Customers benefit from a financially robust insurer capable of fulfilling its obligations. In the competitive landscape, AIG's performance indicates its ability to navigate market challenges and execute its strategic objectives, potentially strengthening its position against rivals like Chubb and Travelers.

Risk Assessment

Risk Level: medium — While AIG shows strong financial improvement, the company's significant exposure to 'loss reserves' and 'reinsurance assets' (Note 1) involves inherent estimation uncertainty. The allowance for credit losses on fixed maturity securities increased to $43 million in 2025 from $38 million in 2024, indicating ongoing credit risk. Furthermore, 'fair value measurements of certain financial assets and financial liabilities' are critical accounting estimates, and 'to the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.'

Analyst Insight

Investors should consider AIG's improved profitability and capital management, evidenced by the $5,302 million in common stock repurchases for the nine months ended September 30, 2025. The strong diluted EPS from continuing operations of $4.08 suggests operational strength. Monitor future disclosures on loss reserve development and investment portfolio performance, especially given the increase in credit loss allowances.

Financial Highlights

debt To Equity
0.21
revenue
$20.23B
operating Margin
N/A
total Assets
$163.42B
total Debt
$9.09B
net Income
$2.36B
eps
$4.08
gross Margin
N/A
cash Position
$1.59B
revenue Growth
+0.75%

Revenue Breakdown

SegmentRevenueGrowth
General Insurance$17,720 million+0.9%

Key Numbers

Key Players & Entities

FAQ

What were AIG's net income and EPS for the nine months ended September 30, 2025?

AIG reported net income attributable to AIG common shareholders of $2,361 million for the nine months ended September 30, 2025. Diluted earnings per common share attributable to AIG common shareholders was $4.08 for the same period, a significant improvement from a net loss of $3.48 in the prior year.

How did AIG's total revenues change in the third quarter of 2025?

For the three months ended September 30, 2025, AIG's total revenues were $6,351 million, a decrease from $6,751 million in the same period of 2024. This was primarily due to higher net realized losses of $490 million in 2025 compared to $167 million in 2024.

What was the impact of discontinued operations on AIG's financial results?

AIG reported no loss from discontinued operations for the nine months ended September 30, 2025, compared to a significant loss of $3,580 million in the prior year. This absence of discontinued operations losses was a major factor in the company's return to overall profitability.

How much did AIG spend on common stock repurchases in the first nine months of 2025?

AIG purchased $5,302 million of common stock during the nine months ended September 30, 2025. This aggressive share repurchase program contributed to a reduction in weighted average shares outstanding and an increase in treasury stock to $70,667 million.

What are AIG's critical accounting estimates?

AIG's critical accounting estimates include the determination of loss reserves, reinsurance assets (including allowance for credit losses), allowance for credit losses on certain investments (primarily loans and available-for-sale fixed maturity securities), fair value measurements of certain financial assets and liabilities, and income taxes, particularly deferred tax asset recoverability.

How did AIG's investment portfolio perform in the third quarter of 2025?

For the three months ended September 30, 2025, AIG reported total net investment income of $772 million, down from $973 million in the prior year. Net realized losses were $490 million, compared to $167 million in the same period of 2024.

What is the outlook for AIG's income tax disclosures?

AIG plans to adopt new FASB guidance on income tax disclosures for annual periods beginning after December 15, 2024. This standard will require disaggregated information about the effective tax rate reconciliation and income taxes paid, but it will not impact AIG's consolidated results of operations or financial condition.

What was the change in AIG's total assets as of September 30, 2025?

AIG's total assets increased to $163,415 million as of September 30, 2025, from $161,322 million at December 31, 2024. This growth was primarily driven by an increase in fixed maturity securities available for sale.

How did AIG's comprehensive income change for the nine months ended September 30, 2025?

AIG's comprehensive income attributable to AIG was $4,414 million for the nine months ended September 30, 2025, a decrease from $5,476 million in the prior year. This change was influenced by various factors in other comprehensive income, including a $1,464 million change in unrealized appreciation of other investments.

What does AIG do?

American International Group, Inc. (AIG) is a leading global insurance organization that provides insurance solutions. It helps businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through its operations, licenses, authorizations, and network partners.

Risk Factors

Industry Context

AIG operates in the highly competitive global insurance industry, facing established players and emerging InsurTech companies. Key industry trends include a focus on digital transformation, evolving customer expectations, and increasing regulatory scrutiny worldwide. The industry is also sensitive to macroeconomic factors such as interest rates and inflation, which impact investment returns and claims costs.

Regulatory Implications

AIG's global operations expose it to a diverse and complex web of insurance regulations. Changes in capital requirements, solvency standards, and data privacy laws in various jurisdictions could necessitate adjustments to its business strategies and operational frameworks, potentially impacting profitability and market access.

What Investors Should Do

  1. Monitor investment portfolio performance
  2. Analyze the impact of share repurchases
  3. Evaluate reserve adequacy

Key Dates

Glossary

Deferred Policy Acquisition Costs (DAC)
Costs incurred in acquiring insurance policies that are capitalized and amortized over the expected life of the policies. (Amortization of DAC impacts current period earnings. AIG's DAC balance was $2.135B as of Sept 30, 2025.)
Fixed maturity securities available for sale
Investments in debt securities that AIG intends to hold for an indefinite period but may sell in response to changes in market conditions or its capital needs. (These form a significant portion of AIG's investment portfolio ($71.18B), and their fair value changes affect AIG's equity and earnings.)
Treasury stock
Shares of a company's own stock that it has repurchased from the open market. (AIG significantly increased its treasury stock balance by $5.094B to $70.667B, indicating substantial share repurchases aimed at reducing outstanding shares.)
Accumulated other comprehensive loss
A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translation adjustments. (AIG's accumulated other comprehensive loss decreased to $(5.046B) from $(7.099B), reflecting improvements in unrealized gains/losses.)
Discontinued operations
A component of a company's business that has been disposed of or is classified as held for sale, and whose results are reported separately from continuing operations. (The absence of a $3.58B loss from discontinued operations in 2025 was a key driver of AIG's improved net income compared to 2024.)

Year-Over-Year Comparison

AIG has demonstrated a significant financial recovery in the nine months ended September 30, 2025, compared to the same period in 2024. Net income attributable to common shareholders swung from a loss of $2.32B to a gain of $2.36B, primarily due to the absence of discontinued operations losses. Income from continuing operations before tax also improved to $3.22B from $2.32B. While total revenues saw a slight increase to $20.23B from $20.07B, net realized losses on investments widened to $851M from $434M, indicating increased market risk exposure. Total assets grew modestly to $163.42B, with a notable increase in fixed maturity securities available for sale, while total shareholders' equity decreased slightly due to substantial share repurchases.

Filing Stats: 4,902 words · 20 min read · ~16 pages · Grade level 18.6 · Accepted 2025-11-05 12:43:12

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information ITEM 1

Financial Statements

Financial Statements 2 Note 1. Basis of Presentation 9 Note 2. Summary of Significant Accounting Policies 9 Note 3. Segment Information 10 Note 4. Discontinued Operations Presentation 14 Note 5. Fair Value Measurements 16 Note 6. Investments 27 Note 7. Lending Activities 33 Note 8. Reinsurance 36 Note 9. Deferred Policy Acquisition Costs 38 Note 10. Variable Interest Entities 39 Note 11. Derivatives and Hedge Accounting 39 Note 12. Insurance Liabilities 42 Note 13. Contingencies, Commitments and Guarantees 45 Note 14. Equity 46 Note 15. Earnings Per Common Share (EPS) 50 Note 16. Income Taxes 51 Note 17. Subsequent Events 53 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 54 Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future Results 54 Use of Non-GAAP Measures 57 Critical Accounting Estimates 59 Executive Summary 59 Consolidated Results of Operations 61 Business Segment Operations 66 Investments 75 Insurance Reserves 82 Liquidity and Capital Resources 86 Enterprise Risk Management 91 Glossary 92 Acronyms 94 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 94 ITEM 4

Controls and Procedures

Controls and Procedures 94

– Other Information

Part II – Other Information ITEM 1

Legal Proceedings

Legal Proceedings 95 ITEM 1A

Risk Factors

Risk Factors 95 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 95 ITEM 5 Other Information 96 ITEM 6 Exhibits 96

Signatures

Signatures 97 AIG | Third Quarter 2025 Form 10-Q 1 TABLE OF CONTENTS

– Financial Information

Part I – Financial Information

| Financial Statements

Item 1. | Financial Statements American International Group, Inc. Condensed Consolidated Balance Sheets (unaudited) (in millions, except for share data) September 30, 2025 December 31, 2024 Assets: Investments: Fixed maturity securities: Bonds available for sale, at fair value, net of allowance for credit losses of $ 43 in 2025 and $ 38 in 2024 (amortized cost: 2025 - $ 72,008 ; 2024 - $ 66,195 ) $ 71,184 $ 64,006 Other bond securities, at fair value 743 745 Equity securities, at fair value 829 704 Mortgage and other loans receivable, net of allowance for credit losses of $ 37,740 in 2025 and $ 37,800 in 2024 3,314 3,868 Other invested assets (portion measured at fair value: 2025 - $ 6,469 ; 2024 - $ 7,384 ) 8,361 9,828 Short-term investments, including restricted cash of $ 3 in 2025 and $ 55 in 2024 (portion measured at fair value: 2025 - $ 4,860 ; 2024 - $ 9,789 ) 9,417 14,462 Total investments 93,848 93,613 Cash 1,589 1,302 Accrued investment income 670 599 Premiums and other receivables, net of allowance for credit losses and disputes of $ 128 in 2025 and $ 127 in 2024 11,264 10,463 Reinsurance assets - Fortitude Re 3,170 3,427 Reinsurance assets - other, net of allowance for credit losses and disputes of $ 226 in 2025 and $ 220 in 2024 35,600 34,618 Deferred income tax assets 4,567 4,956 Deferred policy acquisition costs 2,135 2,065 Goodwill 3,439 3,373 Deposit accounting assets, net of allowance for credit losses of $ 49 in 2025 and $ 49 in 2024 2,531 2,171 Other assets, including restricted cash of $ 2 in 2025 and $ 15 in 2024 (portion measured at fair value: 2025 - $ 131 ; 2024 - $ 179 ) 4,602 4,735 Total assets $ 163,415 $ 161,322 Liabilities: Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $ 14 in 2025 and $ 14 in 2024 $ 69,882 $ 69,168 Unearned premiums 19,563 17,232 Future policy benefits 1,420 1,317 Other policyholder funds 381 418 Fortitude Re funds withheld p

| Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1. Basis of Presentation 1. Basis of Presentation American International Group, Inc. is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as network partners. Unless the context indicates otherwise, the terms "AIG," "we," "us," "our" or "the Company" mean American International Group, Inc. and its consolidated subsidiaries, and the term "AIG Parent" means American International Group, Inc. and not any of its consolidated subsidiaries. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Annual Report). The condensed consolidated financial information as of December 31, 2024 included herein has been derived from the audited Consolidated Financial Statements in the 2024 Annual Report. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Results of operations for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2025 and prior to the issuance of these Condensed Consolidated Financial Statements. USE OF ESTIMATES The pr

| Notes to Condensed Consolidated Financial Statements (unaudited) | 3. Segment Information

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3. Segment Information The following table presents AIG's continuing operations by segment: Three Months Ended September 30, 2025 (in millions) Net Premiums Written Net Premiums Earned Losses and Loss Adjustment Expenses Incurred (a) Amortization of DAC (a) Other Acquisition Expenses (a) General Operating Expenses (a)(b)

Underwriting

Underwriting Income (Loss) Net Investment Income Reconciliation to Income (Loss) from Continuing Operations Before Income Tax Expense North America Commercial $ 2,435 $ 2,198 $ 1,303 $ 221 $ 44 $ 246 $ 384 International Commercial 2,115 2,188 1,167 285 96 310 330 Global Personal 1,680 1,654 909 345 97 224 79 Total General Insurance $ 6,230 $ 6,040 $ 3,379 $ 851 $ 237 $ 780 $ 793 $ 945 $ 1,738 Interest expense — ( 100 ) Other Operations 77 ( 18 ) Elimination and consolidations 2 2 Total 1,0

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