AIG

AIG is a transformed, slimmed-down P&C insurer. Revenue fell from $52.2B (FY2021) to $26.8B (FY2025, -1.7% YoY), but the bulk of that multi-year decline reflects divestitures rather than franchise erosion — the 10-K repeatedly carves out 'AIG's ownership interest in Corebridge' from its core book-value measure, signaling the company is still unwinding its life/retirement stake. So I read the shrinking top line as structural, not collapsing demand.

Earnings rebounded to $3.10B net income (+320.5%) and $5.43 diluted EPS (+350.2%), but that growth is off a FY2024 net loss of -$1.40B — a recovery from a depressed base, not durable compounding. ROE is only 7.5% and net margin 11.6%, both mediocre for a P&C franchise, and the five-year net-income path ($10.4B → $10.2B → $3.64B → -$1.40B → $3.10B) shows real volatility. That volatility ties directly to the catastrophe/terrorism concentration flagged in Item 1A — the largest terrorism exposure sits in NYC Property and Workers' Compensation, partly mitigated by TRIPRA and reinsurance. On reporting quality the picture is clean: an unqualified audit opinion and effective internal control over financial reporting.