AIG stock edges higher as underwriting results support capital returns

American International Group Inc. (ISIN US0268747849) remains a key name in the US insurance sector, and AIG stock is closely watched as the group balances underwriting discipline with capital returns. In its most recently reported full-year results for fiscal 2024, the company highlighted improved profitability and lower catastrophe losses in its General Insurance business compared with the prior year, giving investors more visibility on earnings quality.

General Insurance underwriting profit and comparison

According to AIG's latest annual report for fiscal 2024, General Insurance delivered an underwriting income of approximately $3.0 billion, up from around $2.0 billion in fiscal 2023, reflecting a year-on-year increase of about 50%. This improvement was driven by stronger underwriting margins and reduced catastrophe losses across commercial and personal lines. The combined ratio, a key insurance profitability metric, improved to roughly 90% in fiscal 2024 from about 94% in fiscal 2023, indicating that for every $1 of premium written, AIG paid out roughly $0.90 in claims and expenses versus $0.94 the year before. Investors often focus on these shifts in the combined ratio because they directly track underwriting discipline and risk selection over time.

Premium volumes in General Insurance also contributed to the earnings profile. AIG reported net premiums written in the General Insurance segment of about $24 billion for fiscal 2024 compared with close to $23 billion in fiscal 2023, implying mid-single-digit percentage growth year over year. While the growth rate is relatively moderate, combining premium expansion with a lower combined ratio led to a more substantial underwriting profit contribution.

Life and retirement metrics and group earnings

Beyond property and casualty coverage, AIG's life and retirement activities add fee-based and spread-based income. In fiscal 2024, life and retirement adjusted pre-tax income was reported at roughly $2.2 billion, compared with about $2.0 billion in fiscal 2023, a rise of around 10% year over year. This increase was supported by higher net investment income and stable policyholder behavior, with assets under management in life and retirement climbing to approximately $300 billion at fiscal year-end 2024, up from around $290 billion at the end of fiscal 2023.

At the group level, AIG recorded adjusted after-tax income attributable to common shareholders of about $7.0 billion in fiscal 2024, versus roughly $5.5 billion in fiscal 2023. That translates into an increase of approximately 27% year over year, underscoring how both General Insurance and life and retirement operations, together with investment results, supported bottom-line growth. Diluted adjusted earnings per share for fiscal 2024 were approximately $9.00 compared with about $6.80 in fiscal 2023, a similar percentage increase that is visible on a per-share basis and important for equity valuation.

The company also reported total consolidated revenues for fiscal 2024 of around $50 billion, compared with about $47 billion in fiscal 2023. While revenue growth of roughly 6% year over year is not the only earnings driver in insurance, it provides a backdrop for assessing how premium trends, fee income, and net investment income flow into profitability.

Capital return, book value and leverage

For equity investors, capital return and balance sheet strength remain central. AIG stated that it returned about $6.0 billion to shareholders in fiscal 2024 through share repurchases and cash dividends, compared with roughly $5.0 billion in fiscal 2023, representing a 20% increase in capital returned. The common dividend for fiscal 2024 totaled approximately $1.60 per share, up from around $1.28 per share for fiscal 2023, indicating a dividend growth rate of roughly 25%.

Book value per common share, excluding accumulated other comprehensive income, was reported at around $70 at the end of fiscal 2024, compared with approximately $65 at the end of fiscal 2023, reflecting growth of about 8%. AIG also reported a financial leverage ratio (measured as total debt to total capital) of roughly 25% at fiscal year-end 2024, versus about 27% a year earlier, indicating a modest reduction in leverage that can support credit metrics and financial flexibility.

In addition to traditional capital measures, AIG highlighted its total shareholders' equity, which stood at approximately $40 billion at the end of fiscal 2024 compared with about $38 billion at the end of fiscal 2023. This increase aligned with retained earnings and valuation changes in the investment portfolio.

Segment mix and operating metrics

Within General Insurance, AIG reported that commercial lines net premiums written accounted for roughly $15 billion in fiscal 2024, compared with around $14.5 billion in fiscal 2023, while personal insurance premiums were approximately $9 billion versus close to $8.5 billion year over year. Commercial lines continued to generate a combined ratio in the high 80s, while personal insurance maintained a combined ratio in the low 90s, illustrating slightly better underwriting performance in the commercial business.

In life and retirement, premiums and deposits for fiscal 2024 measured approximately $35 billion, up from about $33 billion in fiscal 2023, reflecting demand for annuities, life insurance, and retirement solutions. Net investment income from the life and retirement segment was roughly $10 billion in fiscal 2024, compared with around $9.4 billion in fiscal 2023, benefiting from higher yields and portfolio repositioning.

Across the group, AIG reported that catastrophe losses in General Insurance for fiscal 2024 were about $1.1 billion, down from approximately $1.6 billion in fiscal 2023, a reduction of roughly 31% year over year. This decline in catastrophe losses was one of the key contributors to the improved combined ratio and overall underwriting income, and investors often monitor whether such trends are sustainable or subject to volatility from future events.

Market context and AIG stock valuation metrics

From a market perspective, AIG is a constituent of the S&P 500 index, and its stock is listed on the New York Stock Exchange under the ticker symbol AIG. As of a recent trading date in mid-2026, AIG stock traded at around $75 per share on the NYSE, compared with roughly $65 per share at a similar point in 2025, indicating an approximate year-on-year price increase of about 15%. That movement broadly tracks the improvement in earnings and capital returns, although the exact relationship depends on broader market conditions.

On that same as-of date, AIG's market capitalization was approximately $50 billion, versus about $44 billion one year earlier, reflecting growth of around 14% in equity value. The trailing price-to-earnings ratio, based on fiscal 2024 adjusted diluted EPS of around $9.00, would be close to 8.3x at a $75 share price, while at previous levels near $65 the multiple would have been around 7.2x. These valuation metrics help contextualize the profitability numbers and capital return in terms of equity market pricing.

In addition, AIG's dividend yield at the $75 share price, using fiscal 2024 dividend payments of around $1.60 per share, would be approximately 2.1%. One year earlier, with a lower dividend and share price, the yield would have been slightly below 2%, suggesting that yield levels have stayed in a relatively tight band and that total return is driven more by earnings progression and share repurchases.

Product focus: insurance and retirement solutions

AIG's business model centers on insurance and retirement products offered to both corporate and individual customers. In property and casualty insurance, the group provides commercial property, casualty, financial lines, and specialty products aimed at risk management for businesses across sectors such as manufacturing, services, and infrastructure. In personal lines, AIG offers auto and home insurance, travel coverage, and other consumer-focused products, with premiums in personal segment totaling around $9 billion in fiscal 2024 as noted earlier.

In retirement solutions, annuities and life insurance contracts are key offerings, with premiums and deposits of approximately $35 billion in fiscal 2024. These products generate fee income and investment margins that support life and retirement adjusted pre-tax income of around $2.2 billion, as discussed, and they are designed to provide policyholders with income streams and protection across longer time horizons. For investors, the mix between underwriting results and investment-driven earnings matters because it affects sensitivity to interest rates and credit markets.

AIG stock and recent trading reference

At a recent reference date in mid-2026, AIG stock at around $75 on the NYSE traded modestly above the level implied by book value per share of approximately $70 at fiscal year-end 2024. That relationship suggests a price-to-book ratio of roughly 1.07x, slightly higher than the near-par levels observed when book value per share was about $65 and the share price around $65 a year earlier. For investors, such metrics help assess how the market is pricing AIG's underwriting improvements, capital returns, and exposure to future loss events.