American International Group, Inc. New (AIG) Earnings

American International Group, Inc. New

AIG · NYSE

Symbol: AIG
Type: Stock
Sector: Finance
Industry: Fire, Marine & Casualty Insurance
Exchange: NYSE

American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in more than 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as network partners. AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

Key Issues

Bullish view

AIG’s insurance franchise could continue producing profitable growth if disciplined pricing and underwriting offset competitive pressure. The company’s scale gives it capacity to serve large commercial and individual customers.

Bearish view

Piper Sandler specifically cited pricing concerns when downgrading AIG, implying that competition could compress margins or weaken growth. That pressure challenges the durability of the underwriting improvement investors expect.

Analyst Consensus

See all

Hold

19 analysts

$76

Current

—

Low

$88

Average

—

High

Average target implies +15.24% versus the current price.

Earnings History

BeatMissNo estimate

Sep 2026upcoming

Next quarter

Reports Nov 3, 2026.

Consensus is $1.80 EPS for Sep 2026 across 7 estimates, ranging $1.55 to $1.98.

AIG Jun 2026

Reported Aug 6, 2026 · after the close

: 5.82%
: -1.49%

: $1.89
: $2.00
: —
: $7.08B

Reported results

: $7.08B; from $7.09B
: $948.00M; from $1.14B
: $1.78; from $1.98

Highlights

Adjusted earnings: Adjusted after-tax income per diluted share was $2.00, up 10% year over year and 5.82% above the $1.89 consensus estimate.
Underwriting: General Insurance underwriting income rose 10% year over year to $686 million, while the combined ratio improved 30 basis points to 89.0%.
Premium growth: General Insurance net premiums written increased 9% to $7.5 billion on both reported and constant-dollar bases, or 11% excluding North America Property.
GAAP result: Net income attributable to AIG common shareholders was $948 million, or $1.78 per diluted share, down from $1.14 billion and $1.98 a year earlier.
Quarterly progression: Net income increased from $763 million in the first quarter, while revenue rose to $7.08 billion from $6.65 billion; second-quarter revenue was essentially flat with $7.09 billion a year earlier.
Segment mix: North America Commercial underwriting income increased 24% to $372 million and Global Personal underwriting income increased to $114 million from $25 million, offsetting a decline in International Commercial to $200 million from $300 million.
Capital return: AIG returned $904 million to shareholders, comprising $641 million of repurchases for approximately 8 million shares and $263 million of dividends.
Corebridge exit: AIG sold approximately 25 million remaining Corebridge shares for aggregate proceeds of about $710 million, eliminating its ownership interest.
Capital strength: Book value per share reached $77.39, up 4% year over year and 2.1% sequentially, while adjusted tangible book value per share rose 3% year over year to $72.18.

Analysis

AIG's second quarter was an operating beat masked by weaker mark-to-market investment results. Adjusted after-tax income per diluted share was $2.00 versus a $1.89 consensus estimate, while adjusted after-tax income rose 2% to $1.07 billion and exceeded the year-ago $1.04 billion. GAAP net income fell 17% to $948 million, or $1.78 per diluted share, from $1.14 billion and $1.98 a year earlier, primarily because changes in the fair value of Corebridge and equity securities were less favorable. Revenue of $7.08 billion was nearly unchanged from $7.09 billion a year ago but increased from $6.65 billion in the first quarter; net income rose from $763 million sequentially.

The defining feature was General Insurance execution: premiums grew 9% to $7.5 billion, underwriting income rose 10% to $686 million and the combined ratio improved to 89.0%. The headline ratio benefited from $145 million of favorable prior-year development, although catastrophe charges increased to $210 million, including $75 million tied to the Middle East conflict. Performance was uneven by business, with strong North America Commercial and Global Personal results offsetting deterioration in International Commercial. AIG also completed its Corebridge exit, returned $904 million of capital and reduced diluted shares 8% year over year to 533.5 million.

General Insurance underwriting

Insurance operations supplied the quarter's core earnings momentum. Net premiums written reached $7.516 billion, up 9% year over year on both reported and constant-dollar bases, with growth across all three businesses and 11% constant-dollar growth excluding North America Property. Underwriting income increased 10% to $686 million, while General Insurance adjusted pre-tax income rose 4% to $1.546 billion.

Underlying margin: The combined ratio improved to 89.0% from 89.3%, and the accident-year combined ratio, as adjusted, improved to 88.1% from 88.4%; the expense ratio fell 20 basis points to 30.8%.
Reserve contribution: Favorable prior-year development increased to $145 million from $112 million, helping the reported combined ratio.
Catastrophes: Catastrophe-related charges rose to $210 million, or 3.4 loss-ratio points, from $170 million and 2.9 points; the current quarter included $75 million of Middle East conflict losses.

Segment underwriting mix

The aggregate underwriting result concealed a meaningful divergence between businesses. North America Commercial delivered the largest improvement, while Global Personal continued its recovery. International Commercial generated strong premium growth but materially weaker profitability, reflecting catastrophe losses, rate pressure and a less favorable business mix.

North America Commercial: Net premiums written increased 9% to $3.125 billion and underwriting income rose 24% to $372 million. The reported combined ratio improved to 84.0% from 85.9%, although the adjusted accident-year ratio worsened 50 basis points to 86.7%.
International Commercial: Net premiums written increased 11% to $2.588 billion, but underwriting income fell 33% to $200 million. The combined ratio deteriorated 540 basis points to 91.3%, and the adjusted accident-year ratio rose 230 basis points to 87.3%.
Global Personal: Net premiums written increased 7% to $1.803 billion and underwriting income jumped to $114 million from $25 million. The combined ratio improved 560 basis points to 92.9%, with the adjusted accident-year ratio improving to 91.2% from 96.1%.

Earnings quality and investments

The gap between GAAP and operating earnings was driven by investment-market volatility rather than deterioration in insurance operations. Total net investment income declined to $1.127 billion from $1.466 billion, primarily because changes in the fair value of Corebridge and equity securities were less favorable. On AIG's adjusted pre-tax income basis, net investment income was $908 million versus $955 million a year earlier, with General Insurance investment income flat at $871 million.

Operating earnings: Adjusted after-tax income increased to $1.069 billion from $1.044 billion, and adjusted after-tax income per diluted share rose to $2.00 from $1.81.
GAAP earnings: Net income attributable to common shareholders fell to $948 million from $1.144 billion, and diluted GAAP EPS declined to $1.78 from $1.98.
Returns: Core Operating ROE was 11.1%, versus 11.7% a year earlier, while reported ROE was 9.4%, versus 11.0%.

Corebridge exit and capital return

AIG completed the disposal of its remaining Corebridge position during the quarter, simplifying the balance sheet and removing an investment that had contributed to GAAP earnings volatility. On May 7, AIG sold approximately 25 million shares for proceeds of about $710 million. The company continued to return capital while reducing its share count.

Shareholder distributions: AIG repurchased approximately 8 million shares for $641 million and paid $263 million of common dividends, for total quarterly capital return of $904 million.
Per-share support: Diluted weighted-average shares fell to 533.5 million from 577.9 million a year earlier, while book value per share increased 4.4% year over year to $77.39.
Leverage: Total debt to total capital was 18.1%, or 17.6% on an adjusted basis, at June 30.

Other Operations drag

Other Operations became a larger offset to General Insurance earnings after the Corebridge exit. Adjusted pre-tax loss widened to $142 million from $101 million, as net investment income and other declined to $39 million from $92 million. The year-ago period included $27 million of Corebridge dividends and the current quarter had lower short-term investment income.

Cost control: Corporate and other general operating expenses improved by $8 million year over year to $82 million.
Interest expense: Interest expense was $99 million, up $2 million from the prior-year quarter.