American International Group (AIG) Posts 51% Income Surge in Q4 Driven by Strong Underwriting Results

American International Group Inc. (NYSE:AIG) is one of the dirt cheap stocks to buy now. On February 11, American International Group reported the financial performance for 2025, highlighted by a 51% year-over-year surge in Q4 adjusted after-tax income to $1.96 per diluted share. For the full year, the company generated $4 billion in adjusted after-tax income and $2.3 billion in underwriting income, representing a 22% increase over 2024.

The company’s capital management strategy remained aggressive, with $6.8 billion returned to shareholders in 2025 through $5.8 billion in share repurchases and $1 billion in dividends. While American International Group saw strong growth in international commercial new business, it navigated a more complex landscape in North America, where retail property and personal net premiums contracted due to a reduced market appetite and higher reinsurance costs.

For 2026, American International Group Inc. (NYSE:AIG) forecasts net premiums written growth in the low to mid-teens, supported by various organic initiatives and strategic transactions. Management is prioritizing operational efficiency with a target to bring the expense ratio below 30% by 2027 and is actively implementing AI agents to reduce cycle times for underwriters. Additionally, the company plans to continue its robust share repurchase program, with at least $1 billion slated for 2026.

American International Group Inc. (NYSE:AIG) provides insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: North America Commercial, International Commercial, and Global Personal.