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 ( TRV )

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.