Insurer AIG posts higher quarterly profit on underwriting strength

[BENGALURU] American International Group (AIG) reported a higher second-quarter profit on Wednesday (Aug 6), powered by strong underwriting gains and higher returns on investments.

Insurers such as AIG and Travelers Cos are benefiting as businesses and individuals have maintained spending on insurance against the backdrop of economic uncertainty.

“We continued to make significant progress on our long-term strategic, operational and financial objectives while navigating a dynamic macroeconomic environment,” CEO Peter Zaffino said.

General insurance net premiums written, on a comparable basis, rose to US$6.9 billion in the three months ended Jun 30. General insurance underwriting income soared 46 per cent to US$626 million.

AIG’s general insurance combined ratio came in at 89.3 per cent on an adjusted basis, compared with 92.5 per cent a year earlier. A ratio below 100 signifies that the insurer earned more from premiums than it paid out in claims.

A rebound in the stock markets following tariffs-related volatility has also helped insurers boost their investment income.

Net investment income jumped 48 per cent to US$1.5 billion in the second quarter, driven by a change in the fair value of AIG’s equity in Corebridge and higher income on available for sale fixed maturity securities.

The company retains a stake in Corebridge, the life and retirement insurer it spun off in 2022.

AIG posted catastrophe-related charges of US$170 million in the quarter, down from US$330 million in the year-ago period.

The company, one of the world’s largest commercial insurers, reported adjusted after-tax income attributable to common shareholders of US$1.04 billion, or US$1.81 per share, compared with US$771 million, or US$1.16 per share, a year earlier.

Shares of the company have gained nearly 8 per cent in 2025, outperforming the broader Dow Jones US Select Insurance Index. REUTERS