AIG Reports Significant Profit Surge Amid Economic Uncertainty

On February 10th, American International Group (AIG) announced a significant increase in fourth-quarter adjusted profits, fueled by robust underwriting performance and enhanced investment returns. Despite broader economic cost-cutting measures, insurance spending by both individuals and businesses remained steady. The demand for coverage continues to rise, driven by economic and geopolitical uncertainties.

In the final quarter of 2025, AIG benefited from below-average catastrophic events, presenting favorable conditions for property and casualty insurers. This scenario led to a notable 48% rise in general insurance underwriting income, reaching $670 million. AIG's general insurance net premiums written saw a modest increase of approximately 1% year-over-year for the quarter ending December 31.

Insurance Sector Performance

Similarly, Travelers Companies, a significant entity in the insurance industry, reported strong quarterly results bolstered by effective underwriting strategies. AIG's total charges related to catastrophe events amounted to $125 million for the fourth quarter, down from $325 million in the same period of the previous year. CEO Peter Zaffino remarked, "2025 was an exceptional year for AIG. We made significant progress, delivered outstanding financial results, and achieved important milestones," setting the stage for a promising 2026.

AIG, recognized as a leader in commercial insurance risk management, outperformed the Dow Jones U.S. Select Insurance Index with an approximate 18% increase in share value in 2025. The company's net investment income, on an adjusted pre-tax income basis, rose by 9.4% in the fourth quarter, bolstered by favorable market conditions post-Federal Reserve rate reductions. AIG reported an adjusted after-tax income attributable to common shareholders of $1.07 billion, or $1.96 per share, marking an increase from $817 million, or $1.30 per share, the year prior.