AIG Reports Strong Q4 & Full Year 2025 Results, Boosts Shareholder Returns, and Declares $0.45 Dividend
Summary
AIG announced strong Q4 and full-year 2025 financial results, including significant growth in adjusted earnings and underwriting income, substantial capital returns to shareholders, and a declared quarterly dividend.
Key Events
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Strong Q4 and Full Year 2025 Financial Performance
Adjusted after-tax income per diluted share increased 51% year-over-year to $1.96 in Q4 2025 and 43% to $7.09 for the full year. General Insurance underwriting income grew 48% in Q4 to $670 million and 22% for the full year to $2.3 billion, with combined ratios improving to 88.8% and 90.1% respectively.
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Significant Capital Returns to Shareholders
AIG returned a total of $6.8 billion to shareholders in 2025, comprising $5.8 billion in share repurchases (approximately 73 million shares) and $1.0 billion in common stock dividends.
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Quarterly Cash Dividend Declared
The Board of Directors declared a quarterly cash dividend of $0.45 per share on its Common Stock, payable on March 30, 2026, to shareholders of record on March 16, 2026.
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Strategic Progress and Corebridge Stake Reduction
The company highlighted strategic partnerships and acquisitions, and noted its ownership of Corebridge Financial, Inc. common stock was reduced to 10.1% due to a sale of shares for approximately $1 billion.
Analysis
American International Group (AIG) delivered robust financial results for the fourth quarter and full year 2025, significantly exceeding prior year performance in key metrics. The company reported a 51% year-over-year increase in Q4 adjusted after-tax income per diluted share and a 43% increase for the full year. Underwriting income in General Insurance also saw substantial growth, coupled with improved combined ratios, indicating strong operational efficiency. AIG's commitment to shareholder returns is evident through the $6.8 billion returned in 2025, primarily via share repurchases, and the declaration of a $0.45 per share quarterly cash dividend. The reduction of its Corebridge Financial stake to 10.1% through a $1 billion share sale further streamlines its portfolio. These positive developments, especially with the stock trading near its 52-week low, could provide a significant boost to investor confidence.
At the time of this filing, AIG was trading at $73.73 on NYSE in the Finance sector, with a market capitalization of approximately $40.5B. The 52-week trading range was $71.25 to $88.07. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.