AIG reported third‑quarter 2025 results that surpassed consensus expectations, delivering an adjusted after‑tax income per diluted share of $2.20—an increase of 77% from the same period last year and a $0.52 beat over the $1.68 consensus estimate. Net income attributable to common shareholders reached $519 million, or $0.93 per diluted share, reflecting a 30% lift in profitability driven by disciplined cost management and a favorable mix of underwriting gains.
General Insurance underwriting income rose 81% to $793 million, while the combined ratio improved to 86.8%, a 5.8‑point swing from the prior year quarter. The improvement is largely attributable to lower catastrophe losses and a shift toward higher‑margin specialty lines, which offset the impact of elevated weather‑related claims. The 86.8% ratio indicates that underwriting profits grew faster than premiums, a sign of effective pricing and risk selection.
Capital returned to shareholders totaled approximately $1.5 billion, comprising $1.25 billion in common‑stock repurchases and a quarterly dividend of $0.45 per share. The share‑buyback program reflects confidence in the company’s cash‑flow generation and a commitment to enhancing shareholder value, while the dividend underscores a stable earnings outlook. The capital return aligns with AIG’s long‑term strategy of balancing growth investments with shareholder returns.
Segment‑level analysis shows that North America Commercial and Global Specialty contributed the bulk of the underwriting gain, driven by premium growth in high‑margin commercial lines and a favorable loss experience. AIG also reported a $7.06 billion revenue figure, beating the $6.85 billion consensus estimate by 3.0%. The revenue lift was supported by robust demand in specialty insurance and a modest increase in core commercial premiums, while investment income remained stable despite fair‑value adjustments to Corebridge equity holdings.
Management reiterated its confidence in the company’s trajectory, noting that the Q3 results reinforce the target of a 10%+ core operating return on equity for 2025. CEO Peter Zaffino highlighted the company’s disciplined underwriting, strategic portfolio repositioning, and capital deployment as key drivers of the performance. While the company did not provide new forward guidance, the results suggest a continued focus on margin expansion and strategic acquisitions, such as the renewal rights for Everest Group’s global retail commercial portfolio.
The market’s reaction was tempered by valuation considerations, with analysts acknowledging the strong earnings beat and margin improvement but noting that the stock had already priced in much of the upside. The muted after‑hours response reflects a cautious stance among investors awaiting further detail on the company’s guidance for Q4 2025 and the full‑year outlook.
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