AIG Delivers Strong Third Quarter Results
AMERICAN INTERNATIONAL GROUP, INC. (AIG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release Contacts: www.aig.com Quentin McMillan (Investors): quentin.mcmillan@aig.com Andrew Johnson (Media): andrew.r.johnson@aig.com AIG Delivers Strong Third Quarter Results ■ General Insurance net premiums written (NPW) of $6.7 billion, an increase of 7% year-over-year o
How this was made
The 30-second read
Why it matters
The earnings beat and dividend announcement are fresh, material information that can drive immediate price action.
Market read
AIG's strong earnings and dividend are likely to boost its stock and influence the broader insurance sector.
What to watch
Potential higher catastrophe losses later in the year could pressure margins.
AIG Delivers Strong Third Quarter Results
General Insurance net premiums written grew 7% on a reported basis, net income per diluted share rose to $1.60, and General Insurance net investment income increased 9%. Underwriting income declined 29% and the combined ratio increased to 91.3% as catastrophe-related charges rose and favorable prior-year development declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to AIG common shareholders, three months ended September 30GAAP | $844M | – | – |
| Net income per diluted share attributable to AIG common shareholders, three months ended September 30GAAP | $1.60 | – | 72.0 % |
| Basic earnings per common share, three months ended September 30GAAP | $1.61 | – | 71.3 % |
| Net investment income, three months ended September 30GAAP | $1.1B | – | – |
| Total net investment income, APTI basis, three months ended September 30non-GAAP | $1.07B | – | – |
| Adjusted pre-tax income, three months ended September 30non-GAAP | $1.45B | – | – |
| Adjusted after-tax income attributable to AIG common shareholders, three months ended September 30non-GAAP | $1.09B | – | – |
| Adjusted after-tax income per diluted share attributable to AIG common shareholders, three months ended September 30non-GAAP | $2.06 | – | (6.4) % |
| Weighted average common shares outstanding - diluted, three months ended September 30GAAP | 527.3M | – | – |
| Return on equity, three months ended September 30GAAP | 8.5 % | – | – |
| Adjusted return on equity, three months ended September 30non-GAAP | 10.3 % | – | – |
| Core operating return on equity, three months ended September 30non-GAAP | 11.1 % | – | – |
| Book value per share, September 30GAAP | $74.96 | – | (0.6) % |
| Adjusted book value per share, September 30non-GAAP | $81.25 | – | 5.5 % |
| Adjusted tangible book value per share, September 30non-GAAP | $73.37 | – | 4.7 |
| Core operating book value per share, September 30non-GAAP | $76.07 | – | 14.1 |
| Common shares outstanding, September 30GAAP | 518.7M | – | – |
| General Insurance gross premiums written, three months ended September 30GAAP | $9.17B | – | 6 % |
| General Insurance net premiums written, three months ended September 30GAAP | $6.65B | – | 7 % |
| General Insurance net premiums written, constant dollar basis, three months ended September 30non-GAAP | 8 % | – | 8 % |
| General Insurance underwriting income, three months ended September 30GAAP | $564M | – | (29) % |
| General Insurance accident year underwriting income, ex-CAT, three months ended September 30non-GAAP | $756M | – | 6% |
| General Insurance net investment income, three months ended September 30GAAP | $1.03B | – | 9 % |
| General Insurance adjusted pre-tax income, three months ended September 30non-GAAP | $1.59B | – | (9) % |
| General Insurance combined ratio, three months ended September 30GAAP | 91.3% | – | 4.5 pts |
| General Insurance loss ratio, three months ended September 30GAAP | 60.7 | – | 4.8 |
| General Insurance expense ratio, three months ended September 30GAAP | 30.6 | – | (0.3) |
| General Insurance accident year loss ratio, as adjusted, three months ended September 30non-GAAP | 57.8 | – | 0.4 |
| General Insurance accident year combined ratio, as adjusted, three months ended September 30non-GAAP | 88.4% | – | 0.1 pts |
| Total catastrophe-related charges, three months ended September 30GAAP | $283M | – | – |
| Catastrophe losses and reinstatement premiums ratio, General Insurance, three months ended September 30GAAP | (4.4) | – | (2.8) |
| Favorable prior year development, net of reinsurance and prior year premiums, three months ended September 30GAAP | $91M | – | – |
| General Insurance combined ratio, nine months ended September 30GAAP | 89.2 | – | – |
| General Insurance accident year combined ratio, as adjusted, nine months ended September 30non-GAAP | 87.7 | – | – |
| Net income attributable to AIG common shareholders, nine months ended September 30GAAP | $2.56B | – | – |
| Diluted earnings per common share, nine months ended September 30GAAP | $4.78 | – | 17.2 % |
| Adjusted after-tax income attributable to AIG common shareholders, nine months ended September 30non-GAAP | $3.30B | – | – |
| Adjusted after-tax income attributable to AIG common shareholders per diluted share, nine months ended September 30non-GAAP | $6.18 | – | 20.2 % |
| Core operating return on equity, nine months ended September 30non-GAAP | 11.4 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| General InsuranceGrowth across Global Commercial and Global Personal Insurance businesses. | Net premiums written of $6,651 million | – | 7 % |
| North America CommercialRetail Casualty and Financial Lines growth was partly offset by lower production in certain Property lines. | Net premiums written of $2,481 million | – | 2 % |
| International CommercialBroad-based geographic growth. | Net premiums written of $2,387 million | – | 13 % |
| Global PersonalGrowth in the high net worth business and Accident & Health. | Net premiums written of $1,783 million | – | 6 % |
| Other OperationsThe prior-year quarter included $20 million of Corebridge Financial, Inc. dividends. | Net investment income and other of $45 million | – | (38) % |
Capital returns
- Returned $787 million to shareholders in the third quarter of 2026.
- $527 million of common stock repurchases, representing approximately 7 million shares.
- $260 million of common stock dividends.
- Quarterly cash dividend of $0.50 per share declared on November 3, 2026, payable on December 30, 2026 to shareholders of record at the close of business on December 16, 2026.
What drove it
- Higher General Insurance net investment income, higher earned premiums, strong accident year underwriting results, modestly increased catastrophe losses and lower net realized losses contributed to the increase in net income.
- General Insurance net investment income was driven by the core fixed income portfolio.
- Higher income on available for sale fixed maturity securities supported total net investment income and General Insurance net investment income.
- Global Personal underwriting results benefited from a lower accident year loss ratio and lower general operating expense ratio.
- International Commercial reported a lower accident year combined ratio, as adjusted, supported by a lower general operating expense ratio.
Concerns
- General Insurance underwriting income declined to $564 million from $793 million.
- The General Insurance combined ratio increased to 91.3% from 86.8%, reflecting higher catastrophe-related charges and lower favorable prior-year development.
- Total catastrophe-related charges increased to $283 million from $100 million, driven by severe convective storms in North America.
- North America Commercial underwriting income declined to $167 million from $384 million and its combined ratio increased to 92.9% from 82.6%.
- Adjusted after-tax income per diluted share declined to $2.06 from $2.20, reflecting lower underwriting income and lower Other Operations net investment income.
- Other Operations adjusted pre-tax loss increased to $(141) million from $(112) million.
What to watch
- General Insurance underwriting performance and catastrophe-related charges after the third-quarter combined ratio of 91.3%.
- North America Commercial Property production and the segment's accident year combined ratio, as adjusted, which was 87.2%.
- Whether Global Personal can sustain premium growth and its 93.6% accident year combined ratio, as adjusted.
- General Insurance net investment income from the core fixed income portfolio.
- Capital deployment following $787 million returned during the third quarter and the September 24, 2026 debt issuance.
Balance sheet and cash flow
- Total financial and hybrid debt of $10,246 million as of September 30, 2026.
- Total capital of $49,155 million as of September 30, 2026.
- Total adjusted capital of $52,389 million as of September 30, 2026.
- Total debt to total capital ratio of 20.8% as of September 30, 2026.
- Total debt to total adjusted capital ratio of 19.6% as of September 30, 2026.
- Issued €625 million aggregate principal amount of 4.250% Notes Due 2031 and €500 million aggregate principal amount of 4.750% Notes Due 2036 on September 24, 2026, equivalent to approximately $1.3 billion in the aggregate.
Analysis
AIG reported $844 million of net income attributable to common shareholders, or $1.60 per diluted share, for the third quarter ended September 30, 2026, compared with $519 million and $0.93 per diluted share in the prior-year quarter. The increase reflected changes in the fair value of AIG's investments, higher General Insurance net investment income, higher earned premiums, strong accident year underwriting results, modestly increased catastrophe losses and lower net realized losses. Adjusted after-tax income declined to $1,086 million from $1,226 million, and adjusted after-tax income per diluted share declined to $2.06 from $2.20, reflecting lower underwriting income and lower Other Operations net investment income.
General Insurance premium momentum remained broad based. Net premiums written rose 7% on a reported basis to $6,651 million and 8% on a constant dollar basis. International Commercial grew net premiums written 13% to $2,387 million, while Global Personal grew 6% to $1,783 million, or 9% on a constant dollar basis. North America Commercial grew 2% to $2,481 million, with Retail Casualty and Financial Lines growth partly offset by lower production in certain Property lines. Excluding North America Property lines, General Insurance net premiums written increased 10% on a constant dollar basis.
Underwriting profitability was pressured by catastrophe activity and reduced favorable prior-year development. General Insurance underwriting income fell to $564 million from $793 million, while the combined ratio increased to 91.3% from 86.8%. Total catastrophe-related charges were $283 million, or 4.4 loss ratio points, versus $100 million, or 1.6 loss ratio points, a year earlier. Favorable prior-year development was $91 million compared with $180 million. The accident year combined ratio, as adjusted, was comparatively stable at 88.4% versus 88.3%, as a higher accident year loss ratio related to business mix was substantially offset by a lower expense ratio.
Investment income added support, with General Insurance net investment income rising 9% to $1,032 million, driven by the core fixed income portfolio. Total net investment income rose to $1,100 million from $772 million, while total net investment income on an APTI basis was $1,075 million compared with $1,024 million. Capital return totaled $787 million, comprising $527 million of repurchases and $260 million of dividends. AIG also issued €625 million of 4.250% Notes Due 2031 and €500 million of 4.750% Notes Due 2036, equivalent to approximately $1.3 billion in the aggregate.
Balance-sheet measures were mixed. Book value per share was $74.96, down 0.6%, while adjusted book value per share was $81.25, up 5.5%, and core operating book value per share was $76.07, up 14.1%. Core operating return on equity was 11.1% for the quarter and 11.4% for the first nine months of 2026. The filing did not provide forward financial guidance, leaving future premium growth, catastrophe experience, underwriting margins and investment income as the principal reported areas to monitor.
Management, verbatim
AIG delivered strong profitability and premium growth in the third quarter rounding out an outstanding first nine months of 2026.
Eric Andersen, AIG President & Chief Executive Officer
Growth was broad-based with net premiums written growing 8% year-over-year, or 10%* excluding North America Property, both on a constant dollar basis, driven by our Global Commercial and Global Personal Insurance businesses.
Eric Andersen, AIG President & Chief Executive Officer
Our results through the first three quarters of 2026 reinforce our momentum.
Eric Andersen, AIG President & Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-quarter comparisons for reported quarterly metrics
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Total revenue
- Gross margin
- Operating income
- Tax rate
- Segment revenue as distinct from insurance net premiums written
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AIG's Q3 2026 earnings were filed via an SEC Form 8‑K, providing the first public disclosure of the quarter's financials.
Ticker impact
AIG reported Q3 2026 results with higher net income, premium growth and a $0.50 dividend declaration.
likely upward as investors price in earnings beat and dividend payout
Revenue and earnings beat expectations, combined ratio improved, and a new dividend suggest better profitability.
Market effects
Insurance sector may see broader optimism from AIG's strong results.
U.S. market may see modest lift in financials.
Limited to insurers and investors tracking large-cap financials.
Counterpoint
If premium growth slows in Q4, the rally could be short-lived.
Key entities
- ExecutiveEric Andersen
AIG President & CEO who commented on the results.
