AIG's quarterly profit rises on stronger underwriting, lower catastrophe charges

Feb 10 (Reuters) - American International Group AIG.N reported a rise in fourth-quarter adjusted profit on Tuesday, as the insurer was helped by strong gains from underwriting and better returns on its investments.

Insurance spending has remained resilient even as individuals and companies cut costs elsewhere, with buyers prioritizing coverage amid rising macroeconomic uncertainty and geopolitical tensions.

In the last quarter of 2025, catastrophe activity was below average, which also acted as a tailwind for property and casualty insurers such as AIG.

The company's quarterly general insurance underwriting income jumped 48% to $670 million from last year. General insurance net premiums written, on a comparable basis, rose about 1% year-over-year in the three months ended December 31.

Peer and insurance bellwether Travelers Companies TRV.N also reported a strong quarterly performance last month, buoyed by underwriting strength.

AIG's total catastrophe-related charges came in at $125 million in the fourth quarter, down from $325 million in the year-ago period.

"2025 was an exceptional year for AIG. We made tremendous progress against our strategy, delivered outstanding financial results, and achieved important milestones that have positioned AIG for a bright future," CEO Peter Zaffino said in a statement.

The CEO added that the company has had a strong start to 2026 and remained on track to meet, or potentially surpass, its financial targets.

Shares of the company gained nearly 18% in 2025, outperforming the broader Dow Jones U.S. Select Insurance Index .DJSINS.

Net investment income, on an adjusted pre tax income basis, rose 9.4% in the fourth quarter, helped by ebullient markets on the back of rate cuts by the Federal Reserve.

The company — one of the world's largest commercial insurers — reported adjusted after-tax income attributable to common shareholders of $1.07 billion, or $1.96 per share, in the three months ended December 31, compared with $817 million, or $1.30 per share, a year earlier.