AIG reports GWP of $10bn for Q2’25 as GI underwriting income increases 46% YoY

Global insurer American International Group, Inc. (AIG) has reported General Insurance (GI) gross written premiums (GWP) growth of 2% hitting $10 billion in Q2’25, compared to $9.9 billion in Q2’24, as the segment’s underwriting result improved considerably year-on-year.

For Q2’25, net premiums written (NPW) are reported at $6.9 billion, a decrease of 1% year-over-year on a reported basis, but an increase of 1% on a comparable basis. This was driven by the 3% year-on-year increase in global commercial NPW, which hit $5.2 billion.

GI underwriting income totalled $626 million for the second quarter of 2025, an increase of 46% year-on-year, compared to $430 million in Q2’24, driven by lower catastrophe charges, higher favourable prior year development, and lower acquisition expenses.

GI adjusted pre-tax income increased by 27% to $1.5 billion from the prior year quarter, driven by higher underwriting income as well as higher net investment income.

Total catastrophe-related charges in Q2’25 were $170 million, representing 2.9 loss ratio points, compared to $330 million, representing 5.7 loss ratio points, in the prior year quarter.

The second quarter of 2025 included favourable prior year development, net of reinsurance and prior year premiums, of $112 million, compared to $20 million in the prior year quarter, primarily driven by the amortization benefit related to adverse development cover along with favourable development in U.S Workers’ Compensation and U.S. Property and Special Risks, partially offset by adverse development in U.S. Excess Casualty.

The combined ratio for the quarter is 89.3%, considerably lower than the 92.5% recorded in Q2’24, driven by improvement in both loss and expense ratios. The loss ratio decreased by 2.7% to 58.3% in the quarter compared to 61% in Q2’24, and the expense ratio fell from 31.5% to 31%.

AIG’s net investment income increased 48% year-on-year to $1.5 billion in Q2’25 compared to $990 million in Q2’24. The net investment income on an adjusted pre-tax income (APTI) basis is $955 million, an increase of 9%.

All in all, net income for the second quarter hit $1.1 billion, compared to a net loss of $4 billion in Q2’24. The net income per diluted share of $1.98, compared to a net loss per diluted share of $5.96 in the prior year quarter.

Adjusted after tax income was $1 billion for Q2’25, compared to $771 million in Q2’24, reflecting higher underwriting income and higher net investment income in GI and improved results in other operations.

Peter Zaffino, Chairman & Chief Executive Officer, AIG, commented, “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. This growth was driven by higher underwriting income of $626 million, higher net investment income of $955 million, and disciplined capital management.

“We continued to make significant progress on our long-term strategic, operational and financial objectives while navigating a dynamic macroeconomic environment. Against this backdrop, General Insurance delivered excellent underwriting profitability in the second quarter and achieved a calendar year combined ratio of 89.3%. Total catastrophe-related charges were $170 million, representing 2.9 loss ratio points, reflecting our disciplined approach to managing volatility.”

He continued, “General Insurance net premiums written grew 1% year-over-year on a comparable basis, driven by 4% growth in North America Commercial. Global Personal net premiums written contracted 3%, primarily driven by changes to reinsurance structures in our High Net Worth business, which continued to drive profitability but had a six-point negative impact to Global Personal’s topline growth in the quarter. Additionally, we had strong retention across our portfolio and strong new business in Global Commercial totaling $1.4 billion.

“We continued to execute on our disciplined capital management strategy, returning a total of $2.0 billion of capital to shareholders in the quarter, including $1.8 billion of share repurchases and $254 million of dividends. We ended the quarter with a debt to total capital ratio of 17.9% and parent liquidity of $4.8 billion, giving the company significant financial flexibility. In addition, Moody’s and S&P Global upgraded their financial strength ratings of our insurance subsidiaries during the quarter, affirming the strength of our business and our balance sheet.

“Core Operating ROE increased to 11.7%, underscoring our strong execution and the effectiveness of initiatives such as AIG Next, which delivered more than $500 million in savings ahead of schedule and significant operational improvements. 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.”