American International Group, Inc. (AIG): History, Ownership, Mission, How It Works & Makes Money

How does a global insurance giant like American International Group, Inc. (AIG), which now boasts a Trailing Twelve Months (TTM) revenue of nearly $27.74 Billion as of November 2025, manage to pivot from its crisis-era reputation to become a disciplined underwriting powerhouse? After delivering a Core Operating Return on Equity (ROE) of 10.9% through the first nine months of 2025, AIG is clearly executing a strategic transformation, driven by a 46% year-over-year surge in Q2 General Insurance underwriting income. If you want to understand the engine behind this resurgence-from its 1919 Shanghai roots to its modern, AI-driven risk management model-then its history, ownership structure, and complex revenue streams are defintely worth a deep dive.

American International Group, Inc. (AIG) History

When you look at American International Group, Inc. (AIG) today-a streamlined, post-bailout insurance giant-it's easy to forget its origins. The company's story isn't a typical Wall Street tale; it starts on the other side of the world and involves a near-death experience that few firms survive, let alone repay. Understanding this history, especially the radical restructuring leading up to 2025, is defintely key to valuing its current operations.

The firm you see now, with its TTM earnings per share (EPS) at $5.22 as of mid-2025, is a direct result of transformative decisions made over the last two decades, especially the strategic pivot away from non-core financial services.

Given Company's Founding Timeline

Year established

1919

Original location

Shanghai, China

Founding team members

Cornelius Vander Starr

Initial capital/funding

Starr founded the company as American Asiatic Underwriters (AAU), an insurance agency focused on serving foreign businesses and expatriates, rather than a capital-intensive underwriter. This model meant he built the business through agency agreements, not a massive initial capital outlay, which is a crucial distinction from modern startup funding.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory is defined by two major pivots: the post-Starr consolidation and the post-2008 crisis restructuring. The 2008 financial crisis was the ultimate transformative moment, forcing a radical, decade-long simplification of a sprawling conglomerate.

• The Bailout and De-risking (2008-2012): The company had to sell off major, profitable assets to repay the government. This included the sale of American Life Insurance Company (ALICO) to MetLife for approximately $15.5 billion and the initial public offering (IPO) of AIA Group Limited, which raised about $20.51 billion. This was a painful but necessary deleveraging process.
• The Focus on Core Insurance (2017-Present): Under pressure from activist investors like Carl Icahn, AIG committed to simplifying its structure. This led to the 2018 acquisition of Validus Holdings, Ltd., strengthening the General Insurance segment in reinsurance and specialty lines.
• The Corebridge Spin-off (2022-2025): The most recent major move was the partial separation of the Life & Retirement business into Corebridge Financial. This unbundling aims to create two distinct, focused entities, allowing the remaining AIG to concentrate on its General Insurance and institutional markets business. As of June 30, 2025, AIG's ownership of Corebridge common stock was reduced to 21.0%.

This strategic focus is paying off in the near-term. For the third quarter of 2025, the company reported an adjusted after-tax income per diluted share of $2.20, a significant increase of 77% year-over-year, driven by a strong General Insurance underwriting income of $793 million. That's a clear sign of a successful turnaround. If you want to dive deeper into the current strategic direction, you should review the Mission Statement, Vision, & Core Values of American International Group, Inc. (AIG).

American International Group, Inc. (AIG) Ownership Structure

American International Group, Inc. (AIG) is overwhelmingly controlled by institutional investors, meaning large financial firms hold the lion's share of its stock, which is typical for a company of this scale and history. This structure means strategic decisions are defintely influenced by the interests of major asset managers like BlackRock and Vanguard Group Inc.

Given Company's Current Status

AIG is a publicly traded company, listed on the New York Stock Exchange (NYSE: AIG). As of November 2025, its market capitalization stands at approximately $42.09 billion, reflecting its status as a global insurance giant. This public status subjects the company to rigorous Securities and Exchange Commission (SEC) reporting and transparency rules, which is good for you as an investor.

The company has shown strong financial momentum in the 2025 fiscal year, with its core operating return on equity (ROE) hitting 10.9% year-to-date through the first nine months, a key metric that shows how efficiently they are using shareholder capital. For the third quarter of 2025 alone, adjusted after-tax income was $1.2 billion, a 52% increase year-over-year. If you want to dive deeper into the forces driving these numbers, you should check out Exploring American International Group, Inc. (AIG) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

The ownership is highly concentrated among institutional funds, giving them significant voting power in corporate governance matters. Here's the quick math on who owns the stock, based on recent filings:

The fact that institutional investors hold over 95% of the stock means their collective decisions-especially those of the top three holders-can easily sway shareholder votes. This is what you call a high institutional float.

Given Company's Leadership

The company is steered by a seasoned executive team, with Chairman and CEO Peter Zaffino at the helm, a dual role that concentrates strategic and operational power. Peter Zaffino has been focused on completing the company's turnaround and simplifying its structure, a strategy that is paying off with a combined ratio of 86.8% for the General Insurance segment in Q3 2025. That's a strong underwriting result.

A key leadership development occurred on November 14, 2025, when the company announced that John Neal, who was slated to become President, will no longer be joining the company due to personal circumstances. This means Peter Zaffino will continue to work with the Board on the future organizational structure, maintaining the status quo for now.

The core executive team driving the day-to-day operations includes:

• Peter Zaffino: Chairman & Chief Executive Officer.
• Keith Walsh: Executive Vice President and Chief Financial Officer, managing the company's capital discipline.
• Jon Hancock: Executive Vice President and CEO, International Commercial Insurance and Global Personal Insurance.
• Don Bailey: Executive Vice President and CEO, North America Commercial Insurance.
• Rose Marie Glazer: Executive Vice President and General Counsel, overseeing legal and regulatory compliance.

This team is tasked with achieving the company's full-year 2025 goal of a 10%+ Core Operating ROE.

American International Group, Inc. (AIG) Mission and Values

American International Group, Inc. (AIG) focuses its mission on reducing future uncertainty for clients, which is the core promise of insurance. This cultural DNA is built on five core values that drive the company's strategic financial performance, including a Q2 2025 net income of $1.1 billion.

You're looking at AIG's long-term viability, and that starts with what they stand for beyond the quarterly earnings. Their purpose is simple: to protect against uncertainty and challenges, giving clients the confidence for tomorrow's opportunities.

American International Group, Inc.'s Core Purpose

The company's core purpose is to be a global risk leader and a responsible corporate citizen, which means more than just paying claims. It's about providing the expertise and financial strength to help businesses, institutions, and individuals overcome uncertainty and pursue bold ideas. This focus on risk expertise is what allowed the General Insurance segment to post an underwriting income of $626 million in Q2 2025, a 46% jump year-over-year.

Official mission statement

The official mission statement is a clear, active commitment to its clientele. It directly connects AIG's core capabilities-risk expertise and financial strength-to the client's emotional and financial well-being.

• We reduce fear of the future and empower our clients through our risk expertise and financial strength.

Honestly, that's exactly what an insurer should promise. For a deeper dive into their governance, you can check out their official stance: Mission Statement, Vision, & Core Values of American International Group, Inc. (AIG).

Vision statement

AIG's vision is to be the world's first-choice provider of insurance and financial services. This isn't just about market share; it's about creating unmatched value for all stakeholders, from customers to shareholders.

The vision also maps directly to their operational goals, like improving shareholder value-they returned a total of $2.0 billion in capital to shareholders in Q2 2025 alone.

• Be the world's first-choice provider of insurance and financial services.
• Create unmatched value for customers, colleagues, business partners, and shareholders.
• Contribute to the growth of sustainable, prosperous communities.

The vision is about being the best, not just being big.

American International Group, Inc. Core Values

AIG's core values set the defintely high standards for employee conduct and business practice, reflecting a post-crisis commitment to integrity and client focus. They are the cultural bedrock supporting the company's strong financial position, which saw book value per share hit $74.14 as of June 30, 2025.

• Win Together: Collaborate across the organization to achieve common goals.
• Take Ownership: Be proactive and accountable for delivering results.
• Set the Standard: Deliver quality, be client-centric, and lead the industry.
• Do What's Right: Act with integrity, lead by example, and lift up communities.
• Be an Ally: Strive for inclusion, listen, and learn from others.

American International Group, Inc. slogan/tagline

While AIG has used several slogans over time, the current messaging focuses on strength and forward momentum, reflecting the company's financial turnaround and strategic clarity. The most resonant tagline is a direct challenge to the future.

• Bring on tomorrow.

This tagline is a simple, powerful statement of confidence in their ability to manage risk.

American International Group, Inc. (AIG) How It Works

American International Group, Inc. (AIG) operates as a global insurance powerhouse, primarily creating value by underwriting complex commercial and specialty risks in its General Insurance segment and generating stable, long-duration returns from its investment portfolio.

The company has successfully executed its multi-year strategy to simplify its structure, focusing on technical underwriting excellence and disciplined capital management, which resulted in a Core Operating Return on Equity (ROE) of 13.6% in the third quarter of 2025.

American International Group, Inc. (AIG) Product/Service Portfolio

AIG's core business is split into two primary segments: General Insurance (GI) and Life & Retirement, though the focus is heavily on GI following the deconsolidation of Corebridge Financial. The GI segment is further broken down into North America Commercial, International Commercial, and Global Personal Insurance.

American International Group, Inc. (AIG) Operational Framework

The operational framework is centered on a 'less-but-better' philosophy, which means focusing on segments where AIG has a distinct underwriting advantage and using technology to drive efficiency and precision. This is how they translate premiums into profit.

Here's the quick math: AIG's General Insurance Combined Ratio-the key measure of underwriting profitability-improved to 86.8% in Q3 2025, a massive 580 basis point improvement year-over-year.

• Disciplined Underwriting: The company uses advanced data analytics and catastrophe modeling to select and price risks accurately, especially in its North America Commercial division, which saw its underwriting income quadruple in Q3 2025.
• Strategic Reinsurance: AIG offloads a portion of its risk to reinsurers to stabilize earnings and protect capital from large, unpredictable losses (catastrophe losses). This strategic program kept Q3 2025 catastrophe-related charges low at only $100 million, down from $417 million in the prior-year quarter.
• Technology Integration (GenAI): AIG is accelerating the use of Generative Artificial Intelligence (GenAI) across its operations, including partnerships with tech firms to enhance underwriting precision and automate claims processing. This shift is defintely a core driver of their improved efficiency.
• Expense Management: The AIG NEXT initiative, a multi-year effort, has been instrumental in streamlining the operating model, which contributes to the lower expense ratio seen in the improved combined ratio.

For a deeper dive into the numbers, you should check out Breaking Down American International Group, Inc. (AIG) Financial Health: Key Insights for Investors.

American International Group, Inc. (AIG) Strategic Advantages

AIG's competitive edge comes from its unique combination of global scale, technical expertise, and a strong balance sheet that allows for strategic, accretive growth.

• Global Footprint and Licensing: Operating in more than 80 countries and jurisdictions, AIG is one of the few insurers that can offer truly multinational insurance programs, a critical need for large, global corporations.
• Capital Strength and Flexibility: The company returned approximately $1.5 billion to shareholders in Q3 2025 alone through buybacks and dividends, signaling a highly resilient capital position.
• Strategic M&A for Scale: AIG is actively making moves to consolidate its market position, like the October 2025 agreement to acquire the renewal rights for a majority of Everest Group's global retail commercial insurance portfolios, representing $2 billion of aggregate premium.
• Deep Specialty Expertise: Their long history in complex, specialty lines of insurance-where pricing is less soft and barriers to entry are higher-provides a structural advantage over generalist competitors.

American International Group, Inc. (AIG) How It Makes Money

American International Group, Inc. (AIG) makes money in two primary ways: first, by collecting premiums from customers for its General Insurance policies and, second, by investing those premiums-the float-until claims are paid. The real financial engine is its underwriting profit, which is the money left over after paying claims and operating expenses, plus the returns generated from its investment portfolio.

American International Group's Revenue Breakdown

Following the strategic separation of its Life and Retirement business, Corebridge Financial, the vast majority of AIG's revenue now comes from its General Insurance segment. This segment covers a massive range of commercial and personal property and casualty (P&C) risks globally. Here's the quick math for the fiscal year 2025 estimated revenue of approximately $29 Billion.

The General Insurance segment is defintely the core driver, expected to generate around $28 Billion in revenue for 2025, with an anticipated growth rate of about 5%. The Legacy Portfolio & Other segment, which includes runoff businesses and other non-core operations, is smaller but is also seeing growth, projected at about 10% to reach roughly $807 Million.

Business Economics

The economics of AIG's business are centered on mastering the combined ratio (CR), which is the sum of the loss ratio (claims paid out) and the expense ratio (operating costs). For an insurer, a CR under 100% means the company is making an underwriting profit-they are profitable even before factoring in investment income. That's a sign of a healthy, disciplined insurer.

• Underwriting Profitability: The General Insurance segment posted a combined ratio of 86.8% in Q3 2025, which is a significant 580 basis point improvement year-over-year. This sub-90% performance is a major indicator that the core insurance business is fundamentally sound and well-managed.
• Float & Investment Income: AIG takes the premiums it collects-the float-and invests it, primarily in fixed-maturity securities. Net investment income on an adjusted pre-tax income (APTI) basis reached $1.0 Billion in Q3 2025, an increase of 15% year-over-year, driven by asset growth and higher reinvestment yields in a rising rate environment.
• Strategic Growth: The company is actively acquiring new premium volume through strategic moves, such as the agreement to acquire the renewal rights for a majority of Everest Group's global retail commercial insurance portfolios, representing $2 billion in aggregate premium. This immediately adds scale and growth potential.

The focus is on profitable growth, not just premium volume. They are prioritizing lines of business that offer the best risk-adjusted returns, which is smart. You can learn more about how the market views these moves by Exploring American International Group, Inc. (AIG) Investor Profile: Who's Buying and Why?

American International Group's Financial Performance

The 2025 results show a company that has successfully streamlined its operations and is generating strong returns from its core P&C business. The numbers aren't abstract; they show real momentum.

• Adjusted Profit Growth: Adjusted After-Tax Income (AATI) per diluted share soared to $2.20 in Q3 2025, a jump of 77% compared to the same quarter last year. Total AATI for the quarter was $1.2 Billion.
• Underwriting Strength: General Insurance underwriting income grew an impressive 81% year-over-year in Q3 2025, totaling $793 Million. This is the clearest sign of improved pricing and risk selection.
• Return on Equity (ROE): The Core Operating ROE hit 13.6% in Q3 2025, and stood at 10.9% for the first nine months of the year. This comfortably exceeds the company's stated target of over 10% for 2025, indicating effective use of shareholder capital.
• Capital Management: AIG returned approximately $1.5 Billion to shareholders in Q3 2025 alone through share repurchases ($1.25 Billion) and dividends ($250 Million), showing a commitment to delivering value back to investors.

The continued strong performance in the combined ratio and the double-digit Core Operating ROE for the first nine months of 2025 suggest the strategic repositioning, including the Corebridge deconsolidation, is paying off. The company is now a much more focused, high-performing P&C insurer.

American International Group, Inc. (AIG) Market Position & Future Outlook

American International Group, Inc. (AIG) is successfully executing its multi-year operational turnaround, shifting its focus to a more specialized, underwriting-driven model, which is reflected in its strong $6.48 diluted EPS forecast for the full 2025 fiscal year. The company's future trajectory hinges on deepening its commercial insurance dominance and achieving its core operating Return on Equity (ROE) target exceeding 10%.

Competitive Landscape

AIG operates in a highly concentrated US Property & Casualty (P&C) market, where its overall market share is smaller than the top players, but its strength lies in specialized commercial lines and global reach. This table reflects the latest available full-year market share data for the US P&C market.

Opportunities & Challenges

You need to look at AIG's future through two lenses: the operational efficiencies it can control and the external risks it cannot. The firm is defintely leaning into technology to drive its next phase of profitability.

Industry Position

AIG has effectively repositioned itself as a disciplined underwriter, a critical shift following its post-crisis restructuring. Its key metric, the General Insurance adjusted accident year combined ratio (a measure of underwriting profitability, where a lower number is better), was an exceptionally strong 87.8% in the first quarter of 2025.

This underwriting excellence is what drives their valuation narrative, not sheer market volume. They are focused on profitable, specialized risk over broad market share gains in commoditized lines.

• Underwriting Discipline: The General Insurance expense ratio improved to 30.8% for the first nine months of 2025, demonstrating operational streamlining.
• Specialty Focus: Strong growth in North America Commercial insurance, which saw a 14% premium increase in Q1 2025, highlights the demand for AIG's expertise in complex risks.
• Capital Management: The company is committed to returning capital, increasing its dividend by 12.5% and maintaining robust liquidity.

To understand the full scope of their capital strategy, you should check out Exploring American International Group, Inc. (AIG) Investor Profile: Who's Buying and Why?. The bottom line is AIG is a global leader in specialty insurance, not a volume player, and its financial health is the strongest it has been in years.