American International Group, Inc. (AIG): BCG Matrix [Dec-2025 Updated]

Honestly, when you look at American International Group, Inc. (AIG) today, you're not analyzing the old conglomerate; you're looking at a focused General Insurance powerhouse that is monetizing its past. The BCG matrix is a great way to map where the cash is coming from and where the growth is going. Here's the quick math on AIG's business units as of late 2025: we see Stars like North America Commercial Insurance posting 14% growth, powered by Cash Cows generating $1.5$ billion in net investment income, even as Dogs like Global Personal Insurance struggle with a 98.5% combined ratio. You need to see where the $1.0$ billion in Corebridge proceeds are going and which Question Marks, like the 20% CAGR-projecting Tata AIG, are set to become the next big earners.

Background of American International Group, Inc. (AIG)

You're looking at American International Group, Inc. (AIG), which is a major American multinational finance and insurance corporation operating in over 80 countries and jurisdictions worldwide. Honestly, it's one of the largest underwriters of commercial and industrial insurance in the United States, but its reach spans property casualty, life insurance, and retirement products globally.

The company has a long history, starting way back in Shanghai, China, on December 19, 1919, founded by Cornelius Vander Starr. To be fair, you can't talk about AIG without mentioning the 2008 financial crisis; the government bailed the firm out for $180 billion, a sum AIG has since fully repaid. That turnaround story is central to understanding the AIG of today, which has transformed into a more focused and efficient property and casualty insurer under Chairman and CEO Peter Zaffino.

Today, AIG structures its operations around three main areas: general insurance, life & retirement, and a separate technology-enabled subsidiary. However, the big strategic move was the demerger of its life insurance arm, which is now the independent company, Corebridge Financial. This leaves the current AIG as a near pure play specialty insurer, heavily focused on its General Insurance segment, which includes North America Commercial, International Commercial, and Global Personal Insurance units.

As of late 2025, the focus is clearly on operational excellence and returning capital. For instance, the company has been executing on initiatives like AIG Next, achieving $500 million in savings. Financially, AIG reaffirmed its expectation to achieve a Core Operating Return on Equity (ROE) of 10%+ for the full year 2025. Plus, looking at the third quarter of 2025, the General Insurance underwriting income jumped 81% year-over-year to $793 million, showing the disciplined underwriting efforts are paying off.

American International Group, Inc. (AIG) - BCG Matrix: Stars

When you look at American International Group, Inc. (AIG)'s portfolio through the Boston Consulting Group (BCG) lens, the Stars are clearly the high-growth, high-market-share businesses that are leaders in their respective areas but still require significant investment to maintain that position. These units are consuming cash to fuel their expansion, but their strong market performance suggests they are on the path to becoming future Cash Cows, provided they sustain this success as market growth eventually moderates. A key tenet of the strategy here is to keep investing heavily to defend and grow that market share; you defintely don't want to starve these engines.

The commercial insurance lines are shining brightest here, showing strong top-line momentum and excellent underwriting discipline, even amidst industry-wide catastrophe events. Here's a quick look at the key metrics driving this Star categorization as of the first half of 2025:

The underlying performance in these areas shows why American International Group, Inc. (AIG) is prioritizing them for capital deployment. The growth in Net Premiums Written (NPW) for the commercial side is robust, indicating strong client acquisition and retention in what are considered high-growth segments of the P&C market. Furthermore, the underwriting quality, as measured by the Accident Year Combined Ratio, is exceptionally tight, showing that the growth isn't coming at the expense of profitability.

You can see the operational success reflected in these specific achievements from the first half of 2025:

• North America Commercial Insurance posted 14% comparable NPW growth in Q1 2025.
• International Commercial Insurance posted 8% comparable NPW growth in Q1 2025.
• The broader General Insurance underwriting income surged by 46% in Q2 2025.
• The Specialty lines business achieved a strong Accident Year Combined Ratio of 87.8% in Q1 2025.

To be fair, while the underwriting income for the entire General Insurance segment saw a 46% surge in Q2 2025, the underlying commercial units showed strong individual growth: North America Commercial underwriting income jumped 58% to $301 million in Q2, and International Commercial underwriting income was up 30% to $300 million in the same quarter. These figures illustrate the cash-generating potential these Stars already possess, even while they are still in their high-investment growth phase.

American International Group, Inc. (AIG) - BCG Matrix: Cash Cows

You're looking at the bedrock of American International Group, Inc.'s (AIG) financial stability, the businesses that generate more cash than they consume. These Cash Cows operate in mature markets but hold a strong market position, meaning we don't need to pour massive promotional dollars into them. Instead, we focus on efficiency and milking the gains to fund the riskier Question Marks and maintain corporate functions. Honestly, these units are what keep the lights on and the dividends flowing.

The General Insurance segment, for instance, is demonstrating the classic Cash Cow profile through consistent underwriting discipline. This segment provides the stable, predictable cash flow that supports the entire enterprise. The monetization of the remaining equity stake in Corebridge Financial, which is a strategic capital return effort, is directly fueled by the cash generated from these high-share, low-growth operations. Here's a quick look at some of the key figures showing this strength as of late 2025.

The investment engine within these core businesses is humming along nicely. For the second quarter of 2025, American International Group, Inc.'s total net investment income hit $1.5 billion, which was a substantial 48% jump compared to the same period last year. This kind of cash generation is exactly what defines a Cash Cow; it's a high-margin cash machine that requires only maintenance-level investment to keep operating effectively.

You can see the operational efficiency in the underwriting results from the General Insurance business, which is the heart of this category for American International Group, Inc. In the third quarter of 2025, the combined ratio settled at 86.8%. A lower combined ratio means the company is keeping more of the premiums it collects after paying claims and expenses, which translates directly into higher underwriting income and, ultimately, more cash flow for the parent company. This is defintely a sign of a well-managed, mature business unit.

The strategic monetization of the Corebridge Financial holding further underscores how American International Group, Inc. is treating this asset as a source of capital. The secondary offering in August 2025 brought in gross proceeds of approximately $1.0 billion. This cash is then used to support capital returns, like share repurchases, which is a classic move for a company looking to maximize returns from its established, cash-rich assets.

To be fair, even in a Cash Cow segment, there are opportunities for incremental improvement that boost cash flow further. For instance, General Insurance's Adjusted Pre-Tax Income (APTI) on an APTI basis reached $1.0 billion in Q3 2025, marking a 15% increase year-over-year. Also, the underwriting income for that segment soared by 81% to $793 million in Q3 2025, driven by lower catastrophe charges and better prior year development. These infrastructure improvements, rather than market expansion, are where you want to see investment dollars go.

• General Insurance Underwriting Income (Q3 2025): $793 million
• Core Operating Return on Equity (Q3 2025): 13.6%
• Capital Returned to Shareholders (Q3 2025): Approximately $1.5 billion

American International Group, Inc. (AIG) - BCG Matrix: Dogs

You're looking at the parts of American International Group, Inc. (AIG) that, by the Boston Consulting Group (BCG) standard, are stuck in low-growth markets and have a small slice of that market. These are the units that tie up capital without offering much return, making them prime candidates for divestiture or aggressive cost management. Expensive turn-around plans rarely work here, so the focus is on minimizing exposure.

The Dogs quadrant for American International Group, Inc. (AIG) typically includes segments characterized by low market share and low market growth, often breaking even or consuming minimal cash, but still representing trapped capital. Here's where we see those characteristics based on the latest figures from the second quarter of 2025.

Underperforming Segments and Metrics

The Global Personal Insurance segment clearly fits the profile of a Dog, showing negative top-line momentum and a combined ratio that remains significantly higher than the General Insurance average. You need to watch these numbers closely because they signal where capital isn't working hard enough.

• Global Personal Insurance saw its Net Premiums Written (NPW) decline by 3% on a comparable basis in Q2 2025.
• This segment posted a calendar year combined ratio of 98.5% in Q2 2025.
• The NPW decline was largely attributed to reinsurance adjustments within the High Net Worth personal lines portfolio.
• The combined ratio of 98.5% for Global Personal Insurance compares unfavorably to the overall General Insurance combined ratio of 89.3% for the same period.

When you look at the core performance indicators, the disparity is stark. While the overall General Insurance business is showing strong underwriting improvement, the Global Personal Insurance unit lags considerably, which is exactly what you expect from a Dog in a portfolio review.

High Net Worth and Legacy Operations

The High Net Worth personal lines are explicitly undergoing restructuring and reinsurance adjustments, which is a direct action taken when a business unit is underperforming its peers or has unfavorable risk exposure relative to its market position. This signals a clear intent to either fix or exit the business.

Furthermore, American International Group, Inc. (AIG) continues to manage certain legacy non-core operations. These are units that are being run-off or managed specifically for capital release, meaning the strategic goal isn't growth, but extraction of trapped assets. The financial reporting reflects this by excluding the 'net results of businesses in run-off' when calculating Adjusted Pre-tax Income (APTI), showing they are intentionally separated from core profitability measures.

• High Net Worth personal lines are actively undergoing restructuring and reinsurance adjustments.
• Certain legacy non-core operations are managed for capital release or are in run-off.
• The exclusion of 'net results of businesses in run-off' from Adjusted Pre-tax Income (APTI) confirms their non-core status.

Honestly, you should treat these segments as capital sinks until you see definitive evidence of a successful repositioning or a clean sale. The goal here is to free up that capital so it can be deployed into Stars or Cash Cows, like the General Insurance segment which posted a strong underwriting income of $626 million in the quarter.

American International Group, Inc. (AIG) - BCG Matrix: Question Marks

You're looking at business units that are burning cash now but have the potential to become future Stars. These are American International Group, Inc. (AIG)'s high-growth areas where market share isn't yet dominant, so they require significant investment to capture that upside. Honestly, these are the units where you need to decide quickly: pour in capital or divest.

The international expansion efforts, particularly in high-growth emerging markets, fit this profile perfectly. Take the Tata AIG venture in India, for example. This operation is projected to maintain a compound annual growth rate (CAGR) of 20% through 2030. That kind of market expansion rate is exactly what you look for in a Question Mark, but it demands sustained funding to secure a leading position. For context, Tata AIG generated $2.1 billion in gross premiums written in 2024.

Domestically, the Global Commercial segment shows strong top-line momentum, which signals market adoption, though it still needs to convert that growth into dominant share. In the first quarter of 2025, new business written in Global Commercial grew 12% year-over-year, totaling $1.1 billion. This is solid, but the unit is consuming resources to fuel that growth while it solidifies its market share against established competitors.

American International Group, Inc. (AIG) is also making major capital allocations into new strategic partnerships, which are essentially bets on future high-growth platforms. These investments require cash now with returns deferred, fitting the Question Mark description. The company is embedding these new assets into its structure, aiming for future profitability. You can see the immediate cash outlay versus the long-term potential in the details of the Convex Group and Onex Corporation transactions announced in late 2025.

These strategic moves are defintely designed to position American International Group, Inc. (AIG) for higher yields and access to high-performing assets, but they are cash-intensive upfront. The company is also focusing internal resources on efficiency, which is critical for Question Marks that need to become self-sustaining quickly or risk becoming Dogs.

The digital transformation and generative AI initiatives are aimed squarely at improving the expense ratio, which is the operational metric for cash consumption. The General Insurance expense ratio for the first nine months of 2025 stood at 30.8%. Management has a clear goal to get this below 30% by 2027. The rollout of GenAI solutions, like AIG Assist in underwriting, is accelerating, with deployment across the Lexington business expected by the end of 2025.

Here are the key operational metrics tied to these efficiency drives:

• General Insurance Expense Ratio (9M 2025): 30.8%
• Expense Ratio Target: Below 30% by 2027
• GenAI Deployment Target: Across Lexington by end of 2025
• Global Commercial New Business Growth (Q1 2025): 12% YoY