Strong Financial Performance: AIG reported a 56% year-over-year increase in adjusted after-tax income per diluted share, reaching $1.81. The overall adjusted after-tax income was $1 billion, reflecting a 35% increase from the prior year, driven primarily by robust performance in the general insurance sector with an underwriting income of $626 million (up 46% year-over-year).
Capital Management and Shareholder Returns: AIG returned $2 billion in capital to shareholders in Q2, totaling $4.5 billion year-to-date. The company plans to continue its share repurchase program, anticipating being at the higher end of its $5 billion to $6 billion guidance range for 2025, indicating a strong commitment to returning capital to investors.
Combined Ratio Improvements: The accident year combined ratio improved substantially, reported at 88.4%, with a calendar year combined ratio of 89.3%. This signifies operational efficiency and profitability in the insurance segment, which is critical for sustained growth and ROE targets.