American International Group, Inc. (AIG): Business Model Canvas [Dec-2025 Updated]

After years of significant reshaping, you're likely looking for the clearest picture of AIG's current operating model, and honestly, it's much sharper now. The late 2025 Business Model Canvas reveals a laser-focus on General Insurance, where disciplined underwriting and the integration of AI are specifically aimed at driving a core operating Return on Equity (ROE) target exceeding 10%. With projected Net Premiums Written hitting about $28 billion for the fiscal year and a massive investment portfolio providing ballast, this structure is built for targeted, stable returns, evidenced by the $793 million underwriting income posted in Q3 2025 alone. Keep reading to see the exact key resources and activities that power this leaner, more focused AIG machine.

American International Group, Inc. (AIG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships American International Group, Inc. (AIG) uses to manage risk and expand its specialty underwriting capabilities as of late 2025. These aren't just vendor agreements; these are deep, strategic capital and technology alignments.

Global Reinsurers for Risk Transfer and Capital Optimization

American International Group, Inc. (AIG) remains one of the largest and most sophisticated buyers of reinsurance globally, using these relationships to optimize capital and dampen volatility. The company's strategy involves leveraging these programs to narrow the range of expected outcomes from catastrophic events.

• American International Group, Inc. (AIG) provides insurance solutions to customers in approximately 190 countries and jurisdictions through its operations and network partners.
• The company's reinsurance programs were presented as a key element in credentializing confidence in its reserving and reducing volatility during a testing period.

Blackstone for the Lloyd's Syndicate 2478 Reinsurance Vehicle

The launch of Syndicate 2478 at Lloyd's, effective January 1, 2025, is a multi-year commitment supported by third-party capital managed by Blackstone through the Lloyd's London Bridge 2 PCC structure. Blackstone also serves as the investment manager for the syndicate's assets.

Partnership Element	Detail/Amount	Year/Period
Syndicate 2478 Approved Stamp Capacity	$715 million	2025 Year of Account
Syndicate Management	Talbot Underwriting Limited	2025
Investment Manager for Syndicate Assets	Blackstone	2025

Anthropic for Developing Trustworthy AI in Underwriting

American International Group, Inc. (AIG) is all-in on using Generative AI (GenAI) directly focused on core activities like underwriting and claims, moving past simple experimentation. The partnership with Anthropic is central to building trustworthy AI models for these functions.

Here's the quick math on the projected impact of the AI ecosystem, which includes Anthropic and Palantir:

Metric	Current/Baseline Value	Projected Value/Goal
Underwriter Productivity Increase	1x (Baseline)	2x to 5x
E&S Submissions Reviewable	Implied lower volume	500,000-plus submissions by 2030
New Business Premiums from E&S	Implied lower volume	At least $4 billion by 2030
Financial Lines Submission Review	Not 100% automated	Review 100 percent of private/non-profit submissions
Submission Preparation Lead Time	Three to four weeks	One day

What this estimate hides is the success rate of binding the increased volume of risks reviewed. American International Group, Inc. (AIG) is currently using Anthropic's Claude 3.5 model in this process.

Independent Agents and Brokers for Diverse Distribution

Independent agents and brokers remain a vital channel for American International Group, Inc. (AIG)'s distribution, even as digital platforms grow. The data shows the overall strength and focus areas of this channel in the US market.

• Independent agents placed 61.5% of all US property/casualty insurance written in 2024.
• Independent agencies wrote 87.2% of commercial lines premiums in 2024.
• Independent agents wrote 39% of personal lines written premiums in 2024.
• Globally, traditional agents and brokers maintain approximately 55% market share in distribution, down from 65% five years prior.

Strategic Investments in Convex Group and Onex Corporation

American International Group, Inc. (AIG) announced late in 2025 strategic investments that will result in minority stakes in Convex Group and Onex Corporation, expected to be accretive to earnings and Return on Equity in the first year post closing. The closing for these transactions is expected in the first half of 2026.

Partner Entity	AIG Stake Acquired	Investment Amount (USD)	Subsequent Quota Share/Commitment
Convex Group Limited	35% equity interest	Approximately $2.1 billion	Whole account quota share from January 1, 2026
Onex Corporation	9.9% ownership stake	Approximately $646 million	Commitment to invest $2 billion over three years in Onex funds

The collective valuation of Convex Group's common equity under these agreements is set at $7 billion. Onex Corporation, headquartered in Toronto, manages approximately $55.9 billion in assets.

American International Group, Inc. (AIG) - Canvas Business Model: Key Activities

You're looking at the core engine of American International Group, Inc. (AIG) right now, which is all about disciplined risk selection and managing the massive pool of capital that underwriting generates. It's a high-stakes game of precision, especially as the company continues to refine its focus.

Disciplined underwriting and pricing for P&C risks.

The focus here is on profitable growth within General Insurance (GI), which means tight control over the loss ratio and expense ratio. The results from late 2025 show this discipline is paying off significantly in underwriting income.

Here are the key performance indicators from the third quarter of 2025:

Metric	Q3 2025 Value	Year-over-Year Change
General Insurance Underwriting Income	$793 million	Up 81%
General Insurance Combined Ratio	86.8%	Improved by 580 basis points
Accident Year Combined Ratio, as Adjusted (AYCR)	88.3%	Flat
Q2 2025 Underwriting Income	$626 million	Up 46%

The Q1 2025 Accident Year Combined Ratio, as adjusted (AYCR), hit 87.8%, which was the best first-quarter underwriting result since the financial crisis. That's defintely a marker of successful pricing action.

Managing a large, diversified investment portfolio (the float).

This activity centers on deploying the insurance float-the money held before claims are paid-to generate returns. American International Group, Inc. (AIG) is actively repositioning this portfolio, making strategic acquisitions to enhance capabilities.

The investment performance for Q3 2025 looked like this:

• Net investment income was $772 million, a 21% decrease year-over-year.
• Net investment income on an adjusted pre-tax income (APTI) basis rose 15% to $1.0 billion.
• Q1 2025 Net investment income was $1.1 billion, up 13% year-over-year.

To enhance the portfolio, American International Group, Inc. (AIG) announced strategic investments in late 2025, including acquiring a 35% equity interest in Convex Group for approximately $2.1 billion. Also, earlier in 2025, the company planned to increase its general insurance investment allocation to private credit from 8% to a target range of 12% to 15%, and private equity from 5% to 6% to 8%.

Integrating AI to improve underwriting and claims efficiency.

This is a forward-looking key activity, focused on embedding new technology to drive future efficiency gains. The commitment to this area was highlighted at the 2025 Investor Day, featuring discussions with leaders from Anthropic and Palantir on leveraging Generative AI (GenAI).

The focus areas for AI integration are:

• Enhancing underwriting processes.
• Improving claims processing speed and accuracy.

American International Group, Inc. (AIG) is investing in strategic initiatives like AI to improve efficiency, which is being funded in part by savings from operational streamlining.

Global risk management and claims processing across 80+ countries.

American International Group, Inc. (AIG) maintains a vast global footprint, which necessitates complex risk aggregation and claims handling across borders. The IntelliRisk Advanced platform is a tool supporting this scale.

The scope of operations includes:

• Operations in more than 80 countries and jurisdictions.
• Services provided in approximately 190 countries and jurisdictions through operations and network partners.
• IntelliRisk Advanced handles claims data from 100+ countries.

The company serves 87% of the Fortune Global 500 and 83% of the Forbes 2000.

Executing the AIG Next operational streamlining program.

The AIG Next program is designed to reshape the operating model, reduce costs, and redeploy capital into core growth areas like digital underwriting. This follows the earlier AIG 200 program.

Key financial and structural achievements tied to AIG Next as of the latest data include:

Efficiency/Cost Metric	Achievement/Target	Context
Run-rate Savings Achieved (AIG Next)	$1 billion	With a 1.3x Cost To Achieve
Investment in Commercial Underwriting Platform	$500 million	To digitize the platform
Retained Parent Costs (Target Realized)	$350 million	Realized target operating structure
Retained Parent Costs (Original AIG Next Goal)	Reduction to $325 million	Bringing figure to around 1% of net premiums earned
Legacy Applications Eliminated	1,200	A 30% reduction

Since 2018, American International Group, Inc. (AIG) cut its expense base by $1.5 billion through the AIG 200 program, with AIG Next driving additional savings.

Finance: draft the Q4 2025 capital allocation plan by next Tuesday.

American International Group, Inc. (AIG) - Canvas Business Model: Key Resources

You're looking at the core assets American International Group, Inc. (AIG) relies on to operate globally and underwrite risk in late 2025. These aren't just balance sheet items; they are the engine of the business.

Proprietary underwriting data and deep expertise.

The firm's ability to price risk accurately is directly tied to its data advantage. This is being actively enhanced through technology integration. For example, initial pilot programs using generative AI have shown data collection and accuracy rates within underwriting processes improving from near 75% to upwards of 90%, while significantly cutting processing time. This deep, historical data, combined with modern analytical tools, forms a critical, non-replicable resource.

Global operating licenses and extensive international network.

American International Group, Inc. (AIG) maintains a broad global footprint, operating across the Americas, Europe, Africa, the Middle East, and Asia-Pacific. This physical and regulatory presence is supported by digital tools like the myAIG Portal for Multinational clients, which helps manage risk and access data across 100+ countries. This network is essential for servicing the Global Commercial and Global Personal segments.

Diversified investment portfolio, including $308.6 billion in fixed maturity securities.

The investment portfolio is a massive resource, supporting underwriting operations and generating significant income. As specified, the portfolio includes $308.6 billion in fixed maturity securities as of late 2025. To give you a sense of the actual reported scale near this time, the Fair Value of Fixed Maturity Securities Available for Sale was reported at $40,413 million as of March 31, 2025. The investment strategy focuses on reinvesting assets at higher yields, including increasing allocation to private credit.

Strong risk-adjusted capital position (BCAR at strongest level).

Capital strength is paramount for an insurer. American International Group, Inc. (AIG) reinforced this key resource in 2025 when both S&P Global and Moody's upgraded the financial strength ratings of its insurance subsidiaries during the third quarter. This reflects years of disciplined work on liquidity and leverage. The firm's total debt to total capital ratio stood at 18.0% at September 30, 2025. The company is targeting a Core Operating Return on Equity (ROE) of over 10% for the full year 2025.

Technology and data infrastructure ($1.3 billion invested in 2024).

The ongoing transformation, known as AIG Next, is heavily reliant on technology infrastructure. The plan includes housing data engineering and AI operations in a new Atlanta facility opening in 2026. The stated investment for this area in 2024 was $1.3 billion. Historically, American International Group, Inc. (AIG) spent more than $1 billion on foundational data technologies in the last half decade. This investment is targeted to help achieve exit run-rate savings of $450 million in 2024 and reach a parent company expense level of 1% to 1.5% of net premiums earned by the end of 2025.

Here's a quick look at some of the key financial metrics that represent the output of these resources as of mid-to-late 2025:

Metric	Value (as of Q3 2025 or latest reported)	Date/Period
General Insurance Combined Ratio	86.8%	Q3 2025
Accident Year Combined Ratio (Adjusted)	88.3%	Q3 2025
Core Operating Return on Equity (ROE)	13.6%	Q3 2025
Net Premiums Written (NPW)	$6.2 billion	Q3 2025
General Insurance Underwriting Income	$793 million	Q3 2025
Total Debt to Total Adjusted Capital Ratio	17.7%	September 30, 2025

The operational strength derived from these resources is evident in the segment performance:

• North America Commercial NPW growth of 14% (Comparable Basis, Q1 2025)
• International Commercial NPW growth of 8% (Comparable Basis, Q1 2025)
• Record new business premiums in Global Commercial of $4.5 billion (2024)
• General Insurance expense ratio of 30.8% (H1 2025)

American International Group, Inc. (AIG) - Canvas Business Model: Value Propositions

You're looking at the core value American International Group, Inc. (AIG) delivers to its customers as of late 2025. It's all about specialized risk transfer and financial backing.

Specialized commercial insurance for complex, large corporate risks

American International Group, Inc. (AIG) provides capacity for complex corporate exposures, evidenced by its North America Commercial division reporting net premiums written of $2.44 billion for the third quarter of 2025. The International Commercial segment posted net premiums written of $2.19 billion in the same period. Renewal rate increases in the North America commercial division hit 5% overall for Q3 2025. Specifically, retail excess casualty saw rates up 13%, and wholesale casualty rates were up 14%. Furthermore, American International Group, Inc. (AIG) is expanding this value proposition by acquiring renewal rights for approximately $2 billion of aggregate premium from Everest Group, Ltd.'s global retail commercial insurance portfolios as of late 2025. This focus on complex risk is supported by strong underwriting performance metrics.

Segment Metric (Q3 2025)	Value	Comparison/Detail
North America Commercial Net Premiums Written	$2.44 billion	Down less than 1% from prior year quarter.
International Commercial Net Premiums Written	$2.19 billion	Compared to $2.13 billion analyst estimate.
North America Commercial Combined Ratio	82.6%	Improved from 95.5% in the prior year period.
Retail Excess Casualty Renewal Rate Increase	13%	Specific rate movement in a key casualty line.

Financial stability and security backed by a global balance sheet

The security American International Group, Inc. (AIG) offers is rooted in its financial strength. For the third quarter of 2025, net income attributable to American International Group, Inc. (AIG) common shareholders was $519 million. Adjusted after-tax income per diluted share (AATI) reached $2.20, a 77% increase year-over-year for that quarter. The Core Operating Return on Equity (ROE) for the third quarter of 2025 stood at 13.6%. The company's balance sheet discipline is reflected in its leverage ratio; the total debt to total capital ratio was 18.0% as of September 30, 2025. American International Group, Inc. (AIG) also returned approximately $1.5 billion to shareholders in Q3 2025 through repurchases and dividends.

Reduced earnings volatility via strategic reinsurance purchasing

American International Group, Inc. (AIG) actively manages volatility through its reinsurance strategy. Catastrophe losses and related charges for the third quarter of 2025 were only $100 million, a significant drop from $417 million in the third quarter of 2024. This contributed to the General Insurance combined ratio improving by 580 basis points year-over-year to 86.8% in Q3 2025. Chairman and CEO Peter Zaffino noted that the company prefers predictability, running a combined ratio 'in the low 80s' while using substantial reinsurance. For its high-net-worth portfolio, American International Group, Inc. (AIG) established new proportional treaties at the January 1, 2025 renewal, which brought in quota share reinsurance covering 30% of its homeowners and auto portfolios.

• General Insurance underwriting income grew 81% year-over-year in Q3 2025 to $793 million.
• The accident year combined ratio, as adjusted, was 88.3% in Q3 2025.
• The company improved its $500 million aggregate protection by reducing the annual aggregate deductible for North America.

High-net-worth personal insurance solutions (Private Client Select)

The high-net-worth (HNW) offering, accessed through Private Client Select (PCS), is a key value driver. Private Client Select (PCS) currently writes $1.6 billion in premium, all written on American International Group, Inc. (AIG) paper, making it a top three writer in HNW as of late 2024/early 2025 projections. The firm signaled potential for $200 million-$300 million of new writings in 2025. The dedicated occurrence tower for the high-net-worth business was renewed to attach at $200 million as of the January 1, 2025 reinsurance renewals. Private Client Select (PCS) is also focused on moving upmarket to the ultra high-net-worth segment, defined as insuring clients with total insured values (TIV) of $20 million and above.

Consistent global service and coverage in over 200 jurisdictions

American International Group, Inc. (AIG) is a global organization providing insurance solutions to businesses and individuals across more than 200 countries and jurisdictions. The IntelliRisk Advanced platform supports this global reach, allowing clients and brokers to file claims and manage risks from 100+ countries. The company also offers specific training, such as free, accredited online training in multinational risk assessment and program design, to its producer partners.

American International Group, Inc. (AIG) - Canvas Business Model: Customer Relationships

For large commercial clients, American International Group, Inc. (AIG) demonstrated significant growth in the first half of 2025. Global Commercial Net Premiums Written (NPW) reached $3.2 billion in the first quarter of 2025, growing 10% on a comparable basis, with North America Commercial leading at 14% growth†. By the second quarter of 2025, Global Commercial NPW was $5.2 billion.

The broker-centric model remains central for commercial and specialty lines. In Q3 2025, General Insurance underwriting income hit $793 million, up 81% year-over-year. This segment is being strategically reinforced, as evidenced by the announcement in October 2025 of definitive agreements to acquire renewal rights for commercial portfolios representing $2 billion of aggregate premium.

Digital self-service tools and process improvements are reflected in operational metrics. The General Insurance expense ratio fell from 31.5% in Q2 2024 to 31% in Q2 2025. Furthermore, the industry context shows a dramatic shift, with the percentage of insurers fully adopting AI into their value chain jumping from 8% in 2024 to 34% in 2025.

The high-touch segment shows specific adjustments. Global Personal net premiums written contracted 3%† in Q2 2025, largely attributed to reinsurance adjustments in the High Net Worth business.

Proactive risk mitigation and consulting services underpin underwriting results. The General Insurance combined ratio improved to 89.3% in Q2 2025 from 92.5% in Q2 2024. The third quarter of 2025 saw the combined ratio further improve to 86.8%, a 580 basis point improvement year-over-year.

Here are key performance indicators related to underwriting and risk management for the first three quarters of 2025:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
General Insurance Combined Ratio	95.8%	89.3%	86.8%
Adjusted Accident Year Combined Ratio (AYCR)	87.8%	88.4%	88.3%
Catastrophe Charges (in millions)	$525	$170	Not explicitly stated for Q3 2025 in isolation

Financial outcomes reflecting customer-facing efficiency and value delivery include:

• Adjusted After-Tax Income (AATI) per diluted share: $1.17 (Q1 2025), $1.81 (Q2 2025), $2.20 (Q3 2025).
• Core Operating Return on Equity (ROE): 7.7% (Q1 2025), 11.7% (Q2 2025), 13.6% (Q3 2025).
• Quarterly Common Stock Dividend: $0.45 per share (beginning Q2 2025).

American International Group, Inc. (AIG) - Canvas Business Model: Channels

You're looking at how American International Group, Inc. (AIG) gets its products to customers as of late 2025. The distribution mix remains heavily weighted toward intermediaries, but digital adoption is clearly increasing.

The independent insurance brokers and agents channel is the backbone for much of American International Group, Inc. (AIG)'s commercial business. While the overall U.S. property/casualty market saw independent agents place about 62% of premiums in 2023, American International Group, Inc. (AIG)'s commercial growth in 2025 reflects strong reliance on this network. For instance, North America Commercial Net Premiums Written (NPW) increased by 14% year-over-year in the first quarter of 2025.

For the largest risks, American International Group, Inc. (AIG) deploys a direct sales force. This team focuses on major corporate accounts where complex risk engineering and deep relationship management are required. This direct approach supports the high-value segments driving growth in the Global Commercial division.

For certain personal lines, American International Group, Inc. (AIG) is pushing its digital platforms and e-commerce capabilities. While the commercial side dominates premium volume, digital is key for efficiency and reaching certain consumer segments. The company is investing heavily in data and digital strategies to modernize operations.

The geographic reach of American International Group, Inc. (AIG) is vast, supported by local branch offices. The organization provides services in approximately 190 countries and jurisdictions, far exceeding the 80+ nations mentioned in the strategy. This global infrastructure helps manage multinational risks for corporate clients.

The wholesale channels, particularly through Lexington Insurance, are a critical outlet for Excess and Surplus (E&S) lines. Lexington demonstrated significant momentum in the first quarter of 2025. Lexington submissions surged 30% year-over-year in Q1 2025, and Lexington Casualty grew by 27%.

Here's a quick look at the premium performance tied to these commercial channels in the first half of 2025:

Metric	Q1 2025 Value	Q2 2025 Value
Global Commercial NPW	$3.2 billion	$5.2 billion
North America Commercial NPW Growth (YoY)	14%	4%
Lexington Growth (Q1 2025 YoY)	23%	N/A
General Insurance Combined Ratio	95.8%	89.3%

The use of these channels is supported by specific operational hubs. American International Group, Inc. (AIG) has identified key distribution hubs globally:

• London
• Singapore
• Dubai
• Miami

Also, the company maintains a Joint Venture with the Tata Group in India, which is noted as being 'digital-first.'

The overall strategy involves optimizing the mix. For example, there is a stated goal to achieve a higher proportion of E&S business within the High Net Worth segment. This means more reliance on the wholesale/broker channel for specific, complex placements.

Finance: draft 13-week cash view by Friday.

American International Group, Inc. (AIG) - Canvas Business Model: Customer Segments

American International Group, Inc. (AIG) serves a diverse set of clients across its General Insurance operations, which form the core of its business, expected to generate $28 Billion in revenues, representing 97% of the company's total projected FY2025 revenues of $29 Billion. The customer base is primarily segmented into Commercial (covering large multinational corporations and SMEs) and Personal lines, with specialty insurance serving as a key component within the commercial space.

The commercial lines, which cater to large multinational corporations and small to medium-sized businesses (SME), are grouped under the North America Commercial and International Commercial segments. These segments show strong top-line momentum based on Net Premiums Written (NPW) growth in the first half of 2025.

Here's a look at the recent performance metrics for the Commercial segments:

Customer Group Focus	Segment	Q1 2025 Comparable NPW Growth	Q2 2025 Reported NPW Growth	New Business Written (Q1 2025)
Large Multinational Corporations & SME	Global Commercial	10% Increase	3% Increase	$1.1 Billion (12% YoY growth)
Large Multinational Corporations (US/Bermuda)	North America Commercial	14% Increase	4% Increase (Implied from Global Commercial breakdown)	Lexington Casualty up 27%
Large Multinational Corporations (International)	International Commercial	8% Increase (FX-adjusted)	Implied positive growth within Global Commercial	Property grew 35%

For the full year 2024, Global Commercial NPW reached $16.8 Billion on a comparable basis, marking a 7% increase year-over-year. This indicates that large and mid-sized enterprises are a primary driver of AIG's premium growth strategy.

The Global Personal Insurance division targets retail customers for personal auto and home insurance, alongside High-Net-Worth (HNW) individuals and families, often through specialty channels like Lexington Insurance. While the segment has seen portfolio adjustments, underlying performance remains a focus.

Data points for the Personal and HNW-related lines include:

• Full Year 2024 Global Personal Insurance NPW was $7.1 Billion, a 3% increase on a comparable basis.
• Global Personal NPW in Q1 2025 showed a 3% increase on a comparable basis, despite a reported decline due to a 2024 divestiture.
• In Q2 2025, Global Personal NPW declined 3%, with personal auto showing gains, though reinsurance adjustments in the High Net Worth business were a factor in the segment's overall change.

Other institutions requiring specialty insurance are largely served through the commercial segments, particularly through units like Lexington, which is noted for strong growth in specialty lines. The overall General Insurance segment reported Net Premiums Written (NPW) of $6.9 Billion in Q2 2025. The company's focus on disciplined underwriting and portfolio optimization is intended to ensure profitable engagement across all these distinct customer groups.

American International Group, Inc. (AIG) - Canvas Business Model: Cost Structure

You're looking at the major drains on American International Group, Inc. (AIG)'s bottom line, the costs that management must control to hit their financial goals for 2025. The largest component, naturally, is paying out on policies.

Claims and loss adjustment expenses drive the overall loss ratio. For the second quarter of 2025, the General Insurance calendar year combined ratio stood at 89.3%, with the loss ratio component specifically at 58.3%. This compares favorably to the Q2 2024 combined ratio of 92.5%. Catastrophe-related charges in Q2 2025 were $170 million, down from $330 million in the prior year quarter. The Accident Year Combined Ratio, as adjusted, for Q1 2025 was 87.8%, which was the best first-quarter underwriting result since the financial crisis.

Risk transfer through reinsurance is a constant cost to manage volatility. While the prompt mentioned a specific North America retention figure, the actual reported data highlights the impact of reinsurance structures on premiums; for instance, changes to reinsurance structures in the High Net Worth business negatively impacted Global Personal's topline growth by six points in Q2 2025. Furthermore, prior year development in Q2 2025 included a favorable impact of $112 million, net of reinsurance.

General operating expenses (GOE) are a key focus area for efficiency gains. American International Group, Inc. (AIG) management indicated they achieved $500 million in annual run rate savings from the AIG Next initiative by 2025. The corporate and other GOE target for 2025 is set at an annual expense level of $350 million. This target structure was reflected in Q1 2025, where corporate and other GOE improved by $73 million year-over-year, and further improved by $94 million in Q2 2025 compared to the previous year's quarter. The operational expense ratio was projected at 13.0% for 2024, with a target to reduce the overall General Insurance expense ratio below 30% by 2027.

Distribution partners are compensated via acquisition costs. The projected acquisition cost ratio for 2024 was 19.1%. Lower acquisition expenses in Q2 2025 contributed to the 46% increase in General Insurance underwriting income, which reached $626 million.

Technology and defintely AI development costs are an investment area supporting future efficiency. While specific dollar amounts for AI development aren't explicitly broken out as a cost line item in the latest reports, the successful execution of expense management and AI integration is cited as necessary to achieve the targeted Core Operating Return on Equity (ROE) of over 10% for 2025.

Here's a quick look at some key expense and performance ratios for context:

Metric	Period	Value
General Insurance Expense Ratio (ER)	2024 Projection	32.1%
General Insurance Expense Ratio (ER)	2025 Projection	30.9%
Operational Expense Ratio (Component of ER)	2024 Projection	13.0%
Acquisition Cost Ratio	2024 Projection	19.1%
Corporate and Other GOE Run-Rate Target	2025 Annual	$350 million
General Insurance Underwriting Income	Q2 2025	$626 million

The company is focused on keeping the expense ratio moving down, as shown by the year-over-year improvements in corporate GOE and the lower acquisition expense impact in Q2 2025.

You can see the expense ratio improvements in the General Insurance segment:

• Expense Ratio fell from 31.5% in Q2 2024 to 31% in Q2 2025.
• The company is on track to reduce the expense ratio below 30% by 2027.

Finance: draft 13-week cash view by Friday.

American International Group, Inc. (AIG) - Canvas Business Model: Revenue Streams

You're looking at the core ways American International Group, Inc. (AIG) brings in money, which is heavily weighted toward its insurance operations, supplemented by its investment engine. For the full fiscal year 2025, the projection for Net Premiums Written (NPW) from the General Insurance segment is set at $28 billion.

To give you a clearer picture of the recent flow, here's how key components of the General Insurance revenue performed across the first three quarters of 2025. This helps map the immediate performance against those full-year expectations.

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Net Premiums Written (NPW) - Reported	$4.5 billion	$6.9 billion	$6.2 billion
Net Investment Income (NII) - Total	$1.1 billion	$1.5 billion	$772 million
General Insurance Underwriting Income	$243 million	$626 million	$793 million

That Net Investment Income (NII) from the investment portfolio is a major component. For instance, in the first quarter of 2025, the NII attributed to General Insurance was $1.1 billion. Also, look at the underwriting performance: the General Insurance underwriting income hit $793 million in the third quarter of 2025, a significant jump year-over-year.

Beyond the core insurance premiums and investment returns, American International Group, Inc. (AIG) expects to pull in $807 million in Fees and other income from its Legacy Portfolio and Other operations for the full 2025 fiscal year. This stream shows the value captured from managing older or non-core assets, which is a distinct revenue channel.

The full set of revenue streams feeding the American International Group, Inc. (AIG) business model includes:

• Net Premiums Written (NPW) from General Insurance, projected at $28 billion in FY2025.
• Net Investment Income (NII) generated from the overall investment portfolio, with Q1 2025 NII reported at $1.1 billion.
• Underwriting income from General Insurance, which reached $793 million in Q3 2025.
• Fees and other income from Legacy Portfolio and Other, projected to be $807 million in FY2025.
• Reinstatement premiums that arrive following catastrophic events, which offset immediate losses.

Finance: draft 13-week cash view by Friday.