AIG continues to reduce its ownership in Corebridge, holding 21.0% of outstanding common stock as of June 30, 2025, down from 48.4% at the deconsolidation date in June 2024. A secondary public offering of 30 million shares in August 2025, expected to generate $1.0 billion in gross proceeds, further signifies AIG's strategic shift away from Corebridge.

AIG's General Insurance strategy emphasizes profitable growth through underwriting discipline, improved client retention, and new business development, aiming to expand capabilities and footprint. The company is actively diversifying its portfolio across asset classes, sectors, and issuers to mitigate idiosyncratic risks and enhance yield through illiquidity premiums.

AIG continued to invest in structured securities and other fixed maturity securities with attractive risk-adjusted return characteristics to improve yields and increase net investment income. The company seeks investments with similar duration and cash flow characteristics to associated insurance liabilities, and purchases assets offering enhanced yield through illiquidity premiums.

General operating and other expenses decreased by 28% to $1,162 million in Q2 2025 from $1,610 million in Q2 2024, and by 20% to $2,277 million for the six months ended June 30, 2025, from $2,848 million in the prior year period. This reduction was a key driver in the increase in net income attributable to AIG common shareholders.

During the six months ended June 30, 2025, AIG repurchased approximately 50 million shares of common stock for an aggregate price of $4.0 billion. The Board authorized an additional $7.5 billion share repurchase program effective April 1, 2025, indicating management's belief in the company's intrinsic value and commitment to shareholder returns.

In May 2025, AIG issued $1.25 billion in new notes while redeeming and repurchasing $693 million aggregate principal amount of debt in May and June 2025. For the six months ended June 30, 2025, $1.1 billion of general borrowings matured, were repaid, or redeemed, demonstrating active management of the capital structure.

As of June 30, 2025, AIG held $29,552 million in fixed maturity securities with unrealized losses totaling $2,340 million, affecting 8,912 items. While management determined these losses were due to non-credit factors and does not intend to sell, this still represents a material exposure to market interest rate fluctuations.

As of June 30, 2025, $152 million of commercial mortgage loans were placed on nonaccrual status, compared to $252 million at December 31, 2024. Although a decrease, the continued presence of nonaccrual loans, particularly those with Debt Service Coverage Ratios below 1.00x ($154 million) and Loan-to-Value ratios greater than 80% ($416 million), indicates ongoing credit risk in this portfolio.

AIG is subject to 'ratings triggers' in agreements that could require additional collateral postings or early termination of derivative contracts upon a downgrade of its long-term senior debt ratings. While ratings were upgraded in May and June 2025, the potential for significant collateral calls (up to $4 million estimated for certain derivatives) in adverse scenarios remains a material liquidity risk.

AIG's General Insurance business operates in a highly competitive industry, differentiating itself by providing leading expertise, underwriting excellence, and value-driven solutions. Management states it maintains underwriting discipline against rate pressures in certain lines and geographies, leveraging its global franchise and balance sheet strength.

North America Commercial net premiums written increased 4% in Q2 2025 and 7% for the six months ended June 30, 2025, primarily due to growth in Casualty driven by new business production and strong retention. The segment focuses on retaining its best accounts and proactively identifying growth areas as market conditions warrant.

Global Personal net premiums written decreased 11% in Q2 2025 and 12% for the six months ended June 30, 2025, primarily due to the sale of AIG's global individual personal travel insurance and assistance business and changes in reinsurance structure. This indicates challenges in maintaining top-line growth in certain personal lines markets.

The General Insurance segment reported a general operating expense ratio of 13.2% in Q2 2025, an improvement of 0.8 points from 12.4% in Q2 2024, and 12.7% for the six months ended June 30, 2025, an improvement of 0.2 points from 12.5% in the prior year. This reflects lower corporate and other general operating expenses driven by increased allocation of expenses to the business.

Other acquisition expenses for General Insurance decreased by 22% to $201 million in Q2 2025 from $258 million in Q2 2024, and by 19% to $433 million for the six months ended June 30, 2025, from $533 million in the prior year. This indicates successful efforts in optimizing costs directly related to acquiring new or renewing insurance contracts.

Restructuring and other costs for the six months ended June 30, 2025, totaled $154 million, a significant reduction from $493 million in the prior year period. Management's discussion highlights initiatives designed to reduce operating expenses, improve efficiency, and simplify the organization, indicating a continued focus on operational streamlining.

Management identifies 'our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives' as a key factor that may affect future results. This indicates a strategic focus on leveraging technology for competitive advantage and operational improvement.

While not explicitly detailed, the company's stated objectives to 'reduce operating expenses, improve efficiency and simplify our organization' and 'enhance risk selection, driving consistent underwriting best practices' suggest ongoing digital transformation efforts to modernize processes and leverage data for better decision-making.

The filing does not provide specific breakdowns of R&D investments or dedicated sections on technological innovation spending. R&D is likely embedded within general operating expenses, making it difficult to quantify the scale or specific focus of innovation-related expenditures.

AIG repurchased approximately 50 million shares of common stock for $4.0 billion during the six months ended June 30, 2025, compared to 45 million shares for $3.3 billion in the prior year period. A new $7.5 billion repurchase authorization (inclusive of $3.4 billion remaining from prior authorization) further underscores a commitment to returning capital.

The Board declared a cash dividend of $0.45 per share for Q2 2025, an increase of 12.5% from the $0.40 per share paid in Q2 2024. This consistent and increasing dividend policy signals confidence in the company's ongoing profitability and cash flow generation.

AIG issued $1.25 billion in new long-term debt in May 2025 (4.850% Notes Due 2030 and 5.450% Notes Due 2035) while repaying/redeeming $1.1 billion of general borrowings during the six months ended June 30, 2025. This indicates a proactive but balanced approach to managing its capital structure and funding needs.

AIG explicitly states that its investment strategies involve 'environmental, social and governance considerations' at the segment level. This indicates an effort to incorporate ESG factors into asset allocation and investment decision-making processes, aligning with broader sustainability trends.

Management acknowledges 'our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters' as a factor that may affect future results. This highlights an awareness of the growing importance of ESG and potential compliance or reputational risks.

The 10-Q filing does not provide detailed quantitative data or specific initiatives related to environmental commitments, social responsibility programs, or governance practices beyond general statements. This suggests that while ESG is a consideration, detailed reporting may be found in other dedicated reports.

Global benchmark interest rates continued to fluctuate in 2025 due to 'inflation trends, geopolitical risk, trade and tariff uncertainties and the rate decisions of the global central banks.' These conditions impact AIG's ability to reinvest future cash flows at equal or greater rates and affect net investment income, which is a significant revenue component.

Currency volatility, particularly for major currencies like GBP and JPY, remains acute, impacting reported net premiums written growth trends in U.S. dollars. For Q2 2025, GBP depreciated 5% and JPY depreciated 6% against the USD, influencing the comparability of financial statement line items.

On July 4, 2025, new U.S. tax legislation (the 'One Big Beautiful Bill Act') was signed, making permanent many 2017 tax provisions. AIG is evaluating its impact but does not expect a material effect on results of operations, indicating a relatively stable tax environment despite legislative changes.