AMERICAN INTERNATIONAL GROUP, INC.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
AIG$77.75-3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0000005272-25-000040
ITEM Management’s Discussion and Analysis of Financial Condition and Results of OperationsCautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future ResultsUse of Non-GAAP MeasuresCritical Accounting EstimatesExecutive SummaryOperating StructureRegulatory, Industry and Economic FactorsConsolidated Results of OperationsBusiness Segment OperationsGeneral InsuranceOther OperationsInvestmentsInvestment HighlightsInvestment StrategiesCredit RatingsInsurance ReservesLiquidity and Capital ResourcesLiquidity and Capital Resources HighlightsAnalysis of Sources and Uses of CashLiquidity and Capital Resources of AIG Parent and SubsidiariesCredit FacilitiesContractual ObligationsOff-Balance Sheet Arrangements and Commercial CommitmentsDebtCredit RatingsFinancial Strength RatingsRegulation and SupervisionDividendsRepurchases of AIG Common StockEnterprise Risk ManagementGlossaryAcronymsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000005272-25-000081
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future ResultsUse of Non-GAAP MeasuresCritical Accounting EstimatesExecutive SummaryOperating StructureRegulatory, Industry and Economic FactorsConsolidated Results of OperationsBusiness Segment OperationsGeneral InsuranceOther OperationsInvestmentsInvestment HighlightsInvestment StrategiesCredit RatingsInsurance ReservesLiquidity and Capital ResourcesLiquidity and Capital Resources HighlightsAnalysis of Sources and Uses of CashLiquidity and Capital Resources of AIG Parent and SubsidiariesCredit FacilitiesContractual ObligationsOff-Balance Sheet Arrangements and Commercial CommitmentsDebtFinancial Strength RatingsCredit RatingsRegulation and SupervisionDividendsRepurchases of AIG Common StockEnterprise Risk ManagementGlossaryAcronymsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 432 previous paragraphs and 484 current paragraphs.
342 unchanged; 63 reworded; 76 added; 23 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 80 previous and 86 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (76)
Current report
Net income (loss) attributable to AIG common shareholders increased $5.1 billion due to the following:
Current report
•an increase in Net investment income of $476 million primarily driven by changes in the fair value of AIG's investment in Corebridge and gain on sale of shares of $455 million in 2025 compared to $65 million in 2024 and higher income from available for sale fixed maturity securities of $149 million;
Current report
•a decrease in General operating and other expenses primarily driven by lower restructuring and other related costs of $348 million; and
Current report
•an increase in underwriting income driven by higher net favorable prior year reserve development of $92 million, primarily in Casualty and lower catastrophe losses of $160 million partially offset by a higher accident year loss ratio due to changes in business mix.
Current report
•an increase in Net realized losses on Fortitude Re funds withheld embedded derivative of $22 million driven by interest rate movement and an increase in Net realized losses on Fortitude Re funds withheld assets of $51 million;
Current report
•an increase in Net realized losses excluding Fortitude Re funds withheld assets and embedded derivative of $5 million, primarily driven by an increase in foreign exchange losses of $79 million and higher derivative and hedge activity losses of $77 million, partially offset by lower losses on sales of securities of $66 million and changes in allowance for credit losses on loans of $57 million;
Current report
•an increase in income tax expense of $258 million as a result of higher income from continuing operations; and
Current report
•a decrease in income attributable to noncontrolling interest of $93 million primarily driven by the deconsolidation of Corebridge.
Current report
Six Months Ended June 30, 2025 and 2024 Comparison
Current report
Net income (loss) attributable to AIG common shareholders increased $4.6 billion due to the following:
Current report
•an increase in Income (loss) from discontinued operations, net of income taxes of $3.6 billion as a result of the deconsolidation of Corebridge in June 2024;
Current report
•an increase in Net investment income of $602 million primarily driven by changes in the fair value of AIG's investment in Corebridge and gain on sale of shares of $664 million in 2025 compared to $65 million in 2024, higher income from available for sale fixed maturity securities of $174 million, partially offset by a decrease in the fair value of equity securities of $61 million and a decrease in interest income on mortgages and other loans of $46 million; and
Current report
•a decrease in General operating and other expenses primarily driven by lower restructuring and other related costs of $339 million.
Current report
•an increase in Net realized losses on Fortitude Re funds withheld embedded derivative of $54 million driven by interest rate movement and an increase in Net realized losses on Fortitude Re funds withheld assets of $34 million;
Current report
•an increase in Net realized losses excluding Fortitude Re funds withheld assets and embedded derivative of $6 million, primarily driven by derivative and hedge activity losses of $57 million and losses from sales of securities of $103 million, partially offset by changes in allowances for credit losses on loans of $70 million and an increase in foreign exchange gains of $82 million;
Current report
•an increase in income tax expense of $259 million as a result of higher income before taxes; and
Current report
(d)In the second quarter of 2024, Restructuring and other costs was primarily related to employee-related costs, including severance, and real estate impairment charges.
Current report
Pre-tax income was $1.5 billion and $617 million in the three months ended June 30, 2025 and 2024, respectively. Pre-tax income was $2.5 billion and $1.7 billion in the six months ended June 30, 2025 and 2024, respectively.
Current report
Adjusted pre-tax income was $1.4 billion and $1.0 billion in the three months ended June 30, 2025 and 2024, respectively. Adjusted pre-tax income was $2.3 billion and $2.2 billion in the six months ended June 30, 2025 and 2024, respectively.
Current report
Net premiums written increased by $254 million primarily due to growth in Casualty driven by new business production and strong retention, partially offset by lower production in Financial Lines.
Current report
Underwriting income increased by $110 million primarily due to:
Current report
•higher net favorable prior year reserve development (3.2 points or $85 million), primarily in Casualty; and
Current report
•lower Catastrophe losses (2.6 points or $42 million).
Current report
•a higher accident year loss ratio, as adjusted (1.2 points) due to changes in business mix; and
Current report
•a higher expense ratio (0.3 points) reflecting an increase in general operating expense ratio (1.5 points), partially offset by a lower acquisition ratio (1.2 points), primarily driven by changes in business mix.
Current report
Underwriting income increased by $3 million primarily due to:
Current report
•higher net favorable prior year reserve development (2.2 points or $114 million), primarily in Casualty; and
Current report
•higher Catastrophe losses (3.0 points or $144 million); and
Current report
•a higher accident year loss ratio, as adjusted (0.8 points) due to changes in business mix.
Current report
Net premiums written, excluding the favorable impact of foreign exchange ($26 million), increased by $15 million primarily due to growth in Casualty and Global Specialty driven by strength of renewal retentions and new business production, partially offset by lower production in Financial Lines.
Current report
Underwriting income increased by $70 million primarily due to lower catastrophe losses (5.3 points or $108 million).
Current report
•a higher accident year loss ratio, as adjusted (1.6 points) due to changes in business mix; and
Current report
•a higher expense ratio (1.3 points) reflecting an increase in the general operating expense ratio (1.0 point), as well as a higher acquisition ratio (0.3 points), primarily driven by changes in business mix.
Current report
•a higher accident year loss ratio, as adjusted (1.4 points) due to changes in business mix; and
Current report
•a higher expense ratio (1.4 points) reflecting an increase in the general operating expense ratio (1.2 points), as well as a higher acquisition ratio (0.2 points), primarily driven by changes in business mix.
Current report
This decrease was partially offset by lower catastrophe losses (1.4 points or $52 million).
Current report
Underwriting income increased by $16 million primarily due to:
Current report
•lower catastrophe losses (0.4 points or $10 million).
Current report
•a higher accident year loss ratio, as adjusted (0.6 points) due to changes in business mix; and
Showing the first 40 of 76 passages. Open the source sections for the rest.
Removed paragraphs (23)
Previous report
Net income (loss) attributable to AIG common shareholders decreased $496 million due to the following:
Previous report
•an increase in Net investment income of $126 million primarily driven by dividends received from Corebridge of $31 million and changes in its stock price of $209 million, partially offset by a decrease in the fair value of equity securities of $79 million.
Previous report
Pre-tax income was $960 million and $1.1 billion in the three months ended March 31, 2025 and 2024, respectively.
Previous report
Adjusted pre-tax income was $909 million and $1.2 billion in the three months ended March 31, 2025 and 2024, respectively.
Previous report
•higher Catastrophe losses (8.4 points or $186 million); and
Previous report
•higher net favorable prior year reserve development (1.0 points or $29 million), primarily driven by favorable development in Property.
Previous report
•higher catastrophe losses (2.7 points or $56 million);
Previous report
•a higher accident year loss ratio, as adjusted (1.1 points) due to changes in business mix.
Previous report
•higher net favorable prior year reserve development (0.5 points or $7 million), primarily driven by favorable development in Global Specialty.
Previous report
•higher catastrophe losses (11.2 points or $177 million); and
Previous report
•a higher accident year loss ratio, as adjusted (0.1 points) due to changes in business mix.
Previous report
•unfavorable prior year reserve development in 2024 (0.2 points or $6 million).
Previous report
Our Investment Management Agreements with BlackRock, Inc.
Previous report
Since April 2022, AIG insurance company subsidiaries have entered into separate investment management agreements with BlackRock, Inc. and its investment advisory affiliates (BlackRock). As of March 31, 2025, BlackRock manages $64 billion of our investment portfolio, consisting of liquid fixed income, certain private placements and private equity assets. In addition, liquid fixed income assets associated with the Fortitude Re funds withheld asset portfolio were separately transferred to BlackRock for management in 2022.
Previous report
Net realized losses excluding Fortitude Re funds withheld assets in the three months ended March 31, 2025 was flat compared to 2024.
Previous report
In the three months ended March 31, 2025, we recognized favorable prior year loss reserve development of $64 million. The key components of this development were:
Previous report
In the three months ended March 31, 2024, we recognized favorable prior year loss reserve development of $34 million. The key components of this development were:
Previous report
During thethree months ended March 31, 2025, we made a cash dividend payment in the amount of $0.40 per share on AIG Common Stock totaling $234 million.
Previous report
During thethree months ended March 31, 2025, AIG Parent repurchased approximately 29 million shares of AIG Common Stock, for an aggregate purchase price of approximately $2.2 billion.
Previous report
RBCRisk-Based Capital A formula designed to measure the adequacy of an insurer’s statutory surplus compared to the risks inherent in its business.
Reworded paragraphs (63)
Previous wording
Results from discontinued operations, including Corebridge, are excluded from all of these measures.
Current wording
Results from discontinued operations are excluded from all of these measures.
Previous wording
General Insurance includes the following major operating companies: National Union Fire Insurance Company of Pittsburgh, Pa. (National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); AIG General Insurance Company, Ltd.; AIG Asia Pacific Insurance, Pte, Ltd.; AIG Europe S.A.; American International Group UK Ltd.; Talbot Underwriting Ltd. (Talbot); Western World Insurance Company and Glatfelter Insurance Group (Glatfelter).
Current wording
General Insurance includes the following major operating companies: National Union Fire Insurance Company of Pittsburgh, Pa. (National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); AIG General Insurance Company, Ltd.; AIG Asia Pacific Insurance Pte. Ltd.; AIG Europe S.A.; American International Group UK Limited; Talbot Underwriting Ltd. (Talbot); Western World Insurance Company and Glatfelter Insurance Group (Glatfelter).
Previous wording
Certain global benchmark interest rates continued to fluctuate in 2025 as markets reacted to change in inflation trends, geopolitical risk and uncertainties and the decisions of the global central banks. Our Net investment income is impacted by market interest rates as well as the deployment of asset allocation strategies to enhance yield, manage duration and interest rate risk. The changes in interest rates and credit spreads impact our ability to reinvest future cash flows at rates equal or greater than the rates on sales and maturities. For additional information on our investment and asset-liability management strategies, see Investments.
Current wording
Certain global benchmark interest rates continued to fluctuate in 2025 as markets reacted to change in inflation trends, geopolitical risk, trade and tariff uncertainties and the rate decisions of the global central banks. Our Net investment income is impacted by market interest rates as well as the deployment of asset allocation strategies to enhance yield, manage duration and interest rate risk. The changes in interest rates and credit spreads impact our ability to reinvest future cash flows at rates equal or greater than the rates on sales and maturities. For additional information on our investment and asset-liability management strategies, see Investments.
Previous wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three months ended March 31, 2025 and 2024. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.
Current wording
The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and six months ended June 30, 2025 and 2024. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.
Previous wording
•a decrease in Income (loss) from discontinued operations, net of income taxes of $803 million as a result of the deconsolidation of Corebridge; and
Current wording
•an increase in Income (loss) from discontinued operations, net of income taxes of $4.4 billion as a result of the deconsolidation of Corebridge in June 2024;
Previous wording
The decrease in Net income (loss) attributable to AIG common shareholders was partially offset by the following:
Current wording
The increase in Net income (loss) attributable to AIG common shareholders was partially offset by the following:
Previous wording
•a decrease in underwriting income primarily driven by higher catastrophe losses of $419 million partially offset by favorable prior year reserve development of $33 million, which does not reflect the benefit of recoveries under a retroactive adverse development cover, as well as lower expense ratio.
Current wording
•a decrease in underwriting income primarily driven by higher catastrophe losses of $259 million and a higher accident year loss ratio due to changes in business mix;
Previous wording
•a decrease in net income attributable to noncontrolling interest of $384 million primarily driven by Corebridge; and
Current wording
•a decrease in net income attributable to noncontrolling interest of $477 million primarily driven by Corebridge.
Previous wording
For the three months ended March 31, 2025 and 2024, the effective tax rate on income (loss) from continuing operations was 27.3 percent and 24.7 percent, respectively.
Current wording
For the three months ended June 30, 2025 and 2024, the effective tax rate on income (loss) from continuing operations was 25.9 percent and 23.0 percent, respectively. For the six months ended June 30, 2025 and 2024, the effective tax rate on income (loss) from continuing operations was 26.4 percent and 24.1 percent, respectively.
Previous wording
(a)Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge is consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in Income (loss) from discontinued operations, net of income taxes.
Current wording
(a)Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge was consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in Income (loss) from discontinued operations, net of income taxes.
Previous wording
Profitable Growth: Build on our high-quality portfolio by focusing on targeted growth through continued underwriting discipline, improved retentions and new business development. Deploy capital efficiently to act opportunistically and achieve growth in profitable lines, geographies and customer segments, while taking a disciplined underwriting approach to exposure management, terms and conditions and rate change to achieve our risk/return hurdles. Continue to be open to inorganic growth opportunities in profitable markets and segments to expand our capabilities and footprint.
Current wording
Profitable Growth: Build on our high-quality portfolio by focusing on targeted growth through continued underwriting discipline, improved client retention and new business development. Deploy capital efficiently to act opportunistically and achieve growth in profitable lines, geographies and customer segments, while taking a disciplined underwriting approach to exposure management, terms and conditions and rate change to achieve our risk/return hurdles. Continue to be open to inorganic growth opportunities in profitable markets and segments to expand our capabilities and footprint.
Previous wording
North America Commercial continues to pursue profitable growth, while capacity in certain segments is putting pressure on rates. We have focused on retaining our best accounts which has led to strong retention across the portfolio. These retention rates are often coupled with continuing to manage exposure limits to reduce volatility within the portfolio. We continue to proactively identify segment growth areas as market conditions warrant through effective portfolio management.
Current wording
North America Commercial continues to pursue profitable growth, while capacity in certain segments is putting pressure on rates. We have focused on retaining our best accounts which has led to strong retention across the portfolio. These retention rates are often coupled with our management of exposure limits to reduce volatility within the portfolio. We continue to proactively identify segment growth areas as market conditions warrant through effective portfolio management.
Previous wording
We are continuing to pursue growth in our most profitable lines of business and diversify our portfolio across all regions by expanding key business lines while remaining a market leader in key developed and developing markets. We are maintaining our underwriting discipline, utilizing reinsurance to reduce volatility and continuing our risk selection strategy to improve profitability.
Current wording
We are continuing to pursue growth in our most profitable lines of business and diversify our portfolio across all regions by expanding key business lines while remaining a market leader in key developed and developing markets. We are maintaining our underwriting discipline, against a backdrop of rate pressures in certain lines and in some geographies, utilizing reinsurance to reduce volatility and continuing our risk selection strategy to improve profitability.
Previous wording
Net premiums written increased by $141 million primarily due to growth in Property and Casualty driven by new business production and strong retention.
Current wording
Net premiums written increased by $113 million primarily due to growth in Casualty driven by new business production and strong retention, partially offset by lower production in Property.
Previous wording
•a lower expense ratio (2.0 points) reflecting a lower general operating expense ratio (1.9 points), primarily driven by expense reductions, and acquisition ratio (0.1 points) primarily driven by changes in business mix; and
Current wording
•a lower expense ratio (0.9 points) reflecting a lower acquisition ratio (0.6 points), primarily driven by changes in business mix and a lower general operating expense ratio (0.3 points).
Previous wording
Net premiums written, excluding the unfavorable impact of foreign exchange ($65 million), increased by $153 million primarily due to growth in Property and Global Specialty driven by strength of renewal retentions and new business production.
Current wording
Net premiums written, excluding the unfavorable impact of foreign exchange ($39 million), increased by $168 million primarily due to growth in Property, Global Specialty and Casualty driven by strength of renewal retentions and new business production, partially offset by lower production in Financial Lines.
Previous wording
Underwriting income decreased by $107 million primarily due to:
Current wording
Underwriting income decreased by $20 million primarily due to:
Previous wording
Net premiums written, excluding the unfavorable impact of foreign exchange ($46 million), decreased by $169 million due to the sale of AIG's global individual personal travel insurance and assistance business in December 2024 ($209 million), partially offset by growth in Personal Auto from positive rate change and new business production.
Current wording
Net premiums written, excluding the unfavorable impact of foreign exchange ($13 million), decreased by $409 million due to the sale of AIG's global individual personal travel insurance and assistance business in December 2024 ($401 million), as well as PCS due to changes in reinsurance structure, partially offset by growth in Personal Auto from positive rate change and new business production.
Previous wording
•a higher expense ratio (1.3 points) reflecting an increase in the general operating expense ratio (1.4 points), partially offset by lower acquisition ratio (0.1 points) primarily driven by changes in business mix; and
Current wording
•a lower expense ratio (1.3 points) reflecting a lower acquisition ratio (1.7 points), primarily driven by change in business mix, partially offset by an increase in the general operating expense ratio (0.4 points); and
Previous wording
Underwriting loss of $126 million in 2025 as compared to underwriting income of $30 million in 2024 is primarily due to:
Current wording
Underwriting loss of $101 million in 2025 compared to underwriting income of $39 million in 2024 is primarily due to:
Previous wording
•a lower expense ratio (1.5 points) reflecting a decrease in the general operating expense ratio (0.8 points), as well as lower acquisition ratio (0.7 points) primarily driven by change in business mix; and
Current wording
This decrease was partially offset by a lower expense ratio (1.4 points) reflecting a lower acquisition ratio (1.2 points), primarily driven by change in business mix, as well as a decrease in the general operating expense ratio (0.2 points).
Previous wording
Adjusted pre-tax loss before consolidation and eliminations was $70 million in 2025 compared to $204 million in 2024, a decrease of $134 million, primarily due to:
Current wording
Adjusted pre-tax loss before consolidation and eliminations was $104 million in 2025 compared to $158 million in 2024, a decrease of $54 million, primarily due to:
Previous wording
•lower corporate and other general operating expenses of $73 million primarily driven by employee-related costs and other operating expenses; and
Current wording
•lower corporate and other general operating expenses of $94 million primarily driven by increased allocation of expenses to the business; and
Previous wording
•higher net investment income and other of $37 million due to dividend income from Corebridge in 2025 of $31 million partially offset by lower income on AIG Parent portfolio due to lower yields;
Current wording
This decrease was partially offset by lower net investment income and other of $50 million due to lower interest on AIG Parent portfolio as a result of lower yields and lower dividend income from Corebridge of $41 million.
Previous wording
•lower interest expense of $24 million primarily driven by interest savings from $2.0 billion debt repurchases, through cash tender offers and debt redemption and maturities in 2024.
Current wording
•lower interest expense of $34 million primarily driven by interest savings from $2.0 billion debt repurchases, through cash tender offers, debt redemption and maturities in 2024 partially offset by new debt issuance of $1.25 billion in 2025.
Previous wording
INVESTMENT HIGHLIGHTS IN THE THREE MONTHS ENDED MARCH 31, 2025
Current wording
INVESTMENT HIGHLIGHTS IN THE SIX MONTHS ENDED JUNE 30, 2025
Previous wording
•Blended investment yields on new investments are higher than blended rates on investments that were sold, matured or called during this period. We continued to make investments in structured securities and other fixed maturity securities with attractive risk-adjusted return characteristics to improve yields and increase net investment income.•Total Net investment income increased for the three months ended March 31, 2025 compared to the same period in the prior year, primarily due to change in fair value and dividend income from AIG's equity in Corebridge, higher income on available for sale fixed maturity securities and lower expenses, partially offset by lower income from short term instruments, mortgage loans and other invested assets.
Current wording
•Blended investment yields on new investments are higher than blended rates on investments that were sold, matured or called during this period. We continued to make investments in structured securities and other fixed maturity securities with attractive risk-adjusted return characteristics to improve yields and increase net investment income.•Total Net investment income increased for the six months ended June 30, 2025 compared to the same period in the prior year, primarily due to change in fair value and dividend income from AIG's equity in Corebridge, higher income on available for sale fixed maturity securities and lower expenses, partially offset by lower income from short term instruments, mortgage loans and other invested assets.
Previous wording
The investment strategy within the General Insurance companies focuses on growth of surplus, maintenance of sufficient liquidity for unanticipated insurance claims, and preservation of capital. General Insurance invests primarily in fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans. Fixed maturity securities of the General Insurance companies have an average duration of 3.9 years, with an average of 4.3 years for North America and 3.2 years for International.
Current wording
The investment strategy within the General Insurance companies focuses on growth of surplus, maintenance of sufficient liquidity for unanticipated insurance claims, and preservation of capital. General Insurance invests primarily in fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans. Fixed maturity securities of the General Insurance companies have an average duration of 3.8 years, with an average of 4.2 years for North America and 3.2 years for International.
Previous wording
While invested assets backing reserves of the General Insurance companies are primarily invested in conventional liquid fixed maturity securities, we have continued to allocate to asset classes that offer higher yields through structural and illiquidity premiums, particularly in our North America operations. In addition, we continue to invest in both fixed rate and floating rate asset-backed investments to manage our exposure to potential changes in interest rates and inflation. We seek to diversify the portfolio across asset classes, sectors and issuers to mitigate idiosyncratic portfolio risks.
Current wording
While assets backing reserves of the General Insurance companies are primarily invested in conventional liquid fixed maturity securities, we have also continued to allocate to asset classes that offer higher yields through structural and illiquidity premiums, particularly in our North America operations. In addition, we continue to invest in both fixed rate and floating rate asset-backed investments to manage our exposure to potential changes in interest rates and inflation. We seek to diversify the portfolio across asset classes, sectors and issuers to mitigate idiosyncratic portfolio risks.
Previous wording
*At March 31, 2025 and December 31, 2024, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $5.5 billion and $3.6 billion, respectively.
Current wording
*At June 30, 2025 and December 31, 2024, the fair value of bonds available for sale we held that were below investment grade or not rated totaled $5.7 billion and $3.6 billion, respectively.
Previous wording
The fair value of CMBS holdings remained stable during the three months ended March 31, 2025. The majority of our investments in CMBS are in tranches that contain substantial credit protection features through collateral subordination. The majority of CMBS holdings are traditional conduit transactions, broadly diversified across property types and geographical areas.
Current wording
The fair value of CMBS holdings remained stable during the six months ended June 30, 2025. The majority of our investments in CMBS are in tranches that contain substantial credit protection features through collateral subordination. The majority of CMBS holdings are single asset single borrower and traditional conduit transactions, broadly diversified across property types and geographical areas.
Previous wording
The allowance for credit losses was $4 million for investment grade bonds and $27 million for below investment grade bonds as of March 31, 2025.
Current wording
The allowance for credit losses was $4 million for investment grade bonds and $41 million for below investment grade bonds as of June 30, 2025.
Previous wording
At March 31, 2025, we had direct commercial mortgage loan exposure of $3.3 billion.
Current wording
At June 30, 2025, we had direct commercial mortgage loan exposure of $3.0 billion.
Previous wording
The change in net unrealized gains and losses on investments in the three months ended March 31, 2024 was primarily attributable to a change in the fair value of fixed maturity securities. For the three months ended March 31, 2024, net unrealized losses were $132 million primarily due to widening of credit spreads.
Current wording
The change in net unrealized gains and losses on investments in the three and six months ended June 30, 2025 was primarily attributable to a change in the fair value of fixed maturity securities. For the three months ended June 30, 2025, net unrealized gains related to fixed maturity securities were $505 million due primarily to lower interest rates and narrowing of credit spreads. For the six months ended June 30, 2025, net unrealized gains were $827 million due to lower interest rates and narrowing of credit spreads.
Previous wording
The change in net unrealized gains and losses on investments in the three months ended March 31, 2025 was primarily attributable to a change in the fair value of fixed maturity securities. For the three months ended March 31, 2025, net unrealized gains were $322 million due to lower interest rates and narrowing of credit spreads.
Current wording
The change in net unrealized gains and losses on investments in the three and six months ended June 30, 2024 was primarily attributable to a change in the fair value of fixed maturity securities. For the three months ended June 30, 2024, net unrealized gains related to fixed maturity securities were $15 million due primarily to narrowing of credit spreads. For the six months ended June 30, 2024, net unrealized losses were $117 million due to higher interest rates, partially offset by tighter credit spreads.
Previous wording
At March 31, 2025, approximately 61 percent of our fixed maturity securities were held by our U.S. entities. Approximately 90 percent of these securities were rated investment grade by one or more of the principal rating agencies.
Current wording
At June 30, 2025, approximately 60 percent of our fixed maturity securities were held by our U.S. entities. Approximately 90 percent of these securities were rated investment grade by one or more of the principal rating agencies.
Previous wording
With respect to our fixed maturity securities, the credit ratings in the table below and in subsequent tables reflect: (i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the National Association of Insurance Commissioners (NAIC) Designation assigned by the NAIC Securities Valuation Office (SVO) (96 percent of total fixed maturity securities), or (ii) our internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC. The “Non-rated” category in those tables consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.
Current wording
With respect to our fixed maturity securities, the credit ratings in the table below and in subsequent tables reflect: (i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the National Association of Insurance Commissioners (NAIC) Designation assigned by the NAIC Securities Valuation Office (SVO) (95 percent of total fixed maturity securities), or (ii) our internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC. The “Non-rated” category in those tables consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.
Previous wording
*Excludes $60 million of fixed maturity securities for which no NAIC Designation is available.
Current wording
*Excludes $78 million of fixed maturity securities for which no NAIC Designation is available.
Previous wording
*Excludes $60 million of fixed maturity securities for which no NAIC Designation is available.
Current wording
*Excludes $78 million of fixed maturity securities for which no composite AIG credit rating is available.
Previous wording
*Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $31 million and $34 million for the three months ended March 31, 2025 and 2024, respectively. Consistent with our definition of APTI, the amount excludes the portion of (favorable)/unfavorable prior year reserve development for which we have ceded the risk under the NICO reinsurance agreements of $0 million and $0 million for the three months ended March 31, 2025 and 2024, respectively. Also excludes the related changes in amortization of the deferred gain, which were $(9) million and $(2) million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
*Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $31 million and $34 million for the three months ended June 30, 2025 and 2024, respectively, and $62 million and $68 million for the six months ended June 30, 2025 and 2024, respectively. Consistent with our definition of APTI, the amount excludes the portion of (favorable)/unfavorable prior year reserve development for which we have ceded the risk under the NICO reinsurance agreements of $122 million and $(63) million for the three months ended June 30, 2025 and 2024, respectively, and $122 million and $(63) million for the six months ended June 30, 2025 and 2024, respectively. Also excludes the related changes in amortization of the deferred gain, which were $69 million and $(1) million for the three months ended June 30, 2025 and 2024, respectively, and $60 million and $(3) million for the six months ended June 30, 2025 and 2024, respectively.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The increase in Net income (loss) attributable to AIG common shareholders was partially offset by the following:
Current report — wording carried from elsewhere
Net premiums written, excluding the favorable impact of foreign exchange ($33 million), decreased by $240 million due to the sale of AIG's global individual personal travel insurance and assistance business in December 2024 ($192 million), as well as PCS due to changes in reinsurance structure, partially offset by growth in Personal Auto from positive rate change and new business production.
Current report — wording carried from elsewhere
Adjusted pre-tax loss before consolidation and eliminations was $174 million in 2025 compared to $362 million in 2024, a decrease of $188 million, primarily due to:
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Underwriting income decreased by $90 million primarily due to:
Previous report — wording carried elsewhere
•Amortization benefit related to the deferred gain on the adverse development cover.
Previous report — wording carried elsewhere
constraints drive the requirements for capital adequacy at AIG and the individual businesses and are based on internally defined risk tolerances, regulatory requirements, rating agency and creditor expectations and business needs.
Previous report — wording carried elsewhere
•$243 million to pay dividends of $0.36 per share on AIG Common Stock;