Financial analysis of AIG

American International Group (AIG) — FY2025 Annual Report

AIG appears to have returned to solid profitability in 2025, reporting net income of roughly $3.1 billion after a modest loss in 2024 that stemmed largely from the deconsolidation of Corebridge Financial. Revenue of about $26.8 billion edged slightly lower year-over-year, continuing a multi-year contraction that seems tied more to the reshaping of the portfolio—divestitures and the Corebridge separation—than to underlying business erosion. The company remains capitalized at approximately $41 billion in shareholders' equity.

What stands out most is the disconnect between the top line and profitability. While revenue has drifted down over several years and net income sits well below the extraordinary $10 billion figures posted in 2021 and 2022, the current-year result reflects a cleaner picture of the continuing property-casualty operations. Underwriting appears disciplined, with losses and loss adjustment expenses declining even as premiums stabilized. Notably, however, the equity-method contribution from the retained Corebridge stake swung to a roughly $307 million loss, and net realized losses of $1.2 billion widened from the prior year—both of which appear to have weighed on reported earnings despite healthy insurance results.