American International Group (AIG) Financials

American International Group (AIG) has shown considerable financial dynamics over the last several years through its income statements, balance sheets, and cash flow statements. Here's a summary analysis and key takeaways to consider for retail investors:

• Consistent Net Income Growth: AIG's consolidated net income improved significantly from a loss of $4.4 billion in Q2 2024 to a profit of $1.14 billion in Q2 2025, showing a strong recovery trajectory.
• Increasing Operating Revenue: Operating revenue increased steadily from around $6.5 billion in Q2 2024 to over $7 billion in Q2 2025, indicating growing business volume.
• Robust Cash Flow from Operations: Net cash from continuing operating activities rebounded from negative $56 million in Q1 2025 to positive $1.39 billion in Q2 2025, reflecting improved operational cash generation.
• Strong Investment Activity: The company has shown active investment management, with purchases and sales of investments indicating active portfolio adjustments; notably, net cash from investing activities was positive $564 million in Q2 2025.
• Controlled Interest Expense: Interest expense remained relatively low at $95 million in Q2 2025 compared to higher levels in previous years, suggesting effective debt management.
• Stable Total Assets and Equity: Total assets remained large and stable around $165-170 billion in early 2025, with total equity around $41.5 billion, consistent with prior periods, indicating stable balance sheet position.
• Amortization and Other Operating Expenses: Amortization and other operating expenses remain at a high level (around $3.5 billion for other operating expenses in Q2 2025), impacting operating income but reflective of large-scale operations.
• Declining Net Cash from Financing Activities: Net cash from financing activities showed significant outflows, notably negative $1.53 billion in Q2 2025 showing significant repayments, common equity repurchases, and dividend payments, which reduce liquidity.
• Large Treasury Stock Balance: Treasury stock values are significant, approximately negative $69.4 billion in Q2 2025, indicating substantial stock repurchases which may impact share count and shareholder equity.
• High Liabilities Level: Total liabilities remained high at approximately $124 billion as of Q2 2025, suggesting a substantial debt load which requires ongoing management.

Trend Summary: AIG has made a strong turnaround from losses in mid-2024 to profitable operations and improved cash flow in 2025. The company is actively managing its investment portfolio and debt, along with returning capital to shareholders through dividends and share repurchases. However, the size of liabilities and treasury stock offset some of the positive implications and suggest that investors should monitor the company's leverage and capital allocation policies closely.

Overall, AIG looks poised for continued stabilized growth and profitability with solid operational cash flows, though retail investors should keep an eye on debt levels and the impact of stock repurchases on equity value.