Feb 10 (Reuters) - American International Group ( AIG ) reported a rise in fourth-quarter adjusted profit on Tuesday, as the insurer was helped by strong gains from underwriting and better returns on its investments.

Insurance spending ​has remained resilient even as individuals and ‌companies cut costs elsewhere, with buyers prioritizing coverage amid rising macroeconomic uncertainty and geopolitical tensions.

In ⁠the last quarter of 2025, catastrophe activity was below average, which ⁠also acted as a tailwind for property and casualty ‌insurers such as ‌AIG.

The company's quarterly general insurance underwriting income jumped 48% to $670 million from last year. ​General insurance net premiums written, on ‌a comparable basis, rose about 1% year-over-year in the three months ended December 31.

Peer and insurance bellwether Travelers Companies ​also reported a strong quarterly performance ​last ‌month, buoyed by underwriting strength.

AIG's total catastrophe-related charges came in at $125 million in the fourth quarter, down from $325 million in the ⁠year-ago period.

"2025 was an exceptional year for AIG. We made tremendous ⁠progress against our strategy, delivered outstanding financial results, and achieved important milestones that have positioned AIG for a bright future," CEO Peter Zaffino said in a statement.

The CEO added that the company has had ⁠a ‌strong start to 2026 and remained on track to ‌meet, or potentially surpass, its financial targets.

Shares of the company gained ⁠nearly 18% in 2025, outperforming the broader Dow Jones U.S. Select Insurance Index.

Net investment income, on an adjusted pre tax income basis, rose 9.4% in the fourth quarter, helped by ebullient markets on the back of rate cuts by the Federal Reserve.

The company - one of the world's largest commercial insurers - reported ​adjusted after-tax income attributable to common shareholders of $1.07 billion, or $1.96 per share, in the three months ended December 31, compared with $817 million, or $1.30 ​per share, a year earlier.