AIG’s Q2 Earnings Jump 56% on $6.88B Premiums, Stock Climbs into Top 500 by Trading Volume

American International Group (AIG) delivered a robust second-quarter performance, with adjusted after-tax income per diluted share surging 56% year-over-year to $1.81. The insurer’s underwriting income jumped 46% to $626 million, driven by strong net premiums written of $6.88 billion and a combined ratio of 89.3%, signaling improved profitability. CEO Peter Zaffino highlighted progress in strategic and financial goals amid macroeconomic volatility. The stock closed up 0.79% on August 6, with a trading volume of $330 million, reflecting renewed investor confidence.

Key drivers included a 48% rise in net investment income to $1.47 billion, fueled by gains from AIG’s equity stake in Corebridge and higher returns on fixed-income securities. Catastrophe-related charges fell to $170 million, down from $330 million a year earlier, reducing pressure on margins. AIG also returned $2 billion to shareholders via buybacks and dividends, reinforcing its disciplined capital management approach. The company’s general insurance segment showed resilience, with North America Commercial net premiums up 4% and underwriting income growing 58%.

Market dynamics, including post-tariff-related equity rebounds and stable macroeconomic conditions, supported AIG’s performance. The stock’s 8% gain in 2025 outpaced the broader insurance index, reflecting its strong balance sheet and operational efficiency. Analysts noted that AIG’s focus on cost control and strategic initiatives, such as AIG Next, has enhanced its ROE to 11.7%, underscoring long-term value creation.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets.