American International Group (AIG) Q2 2026 earnings summary

Executive summary

• Net premiums written rose 9% year-over-year to $7.5 billion, with growth across all business segments and robust organic growth supported by strategic transactions.

• General Insurance underwriting income increased 10% year-over-year to $686 million, with disciplined execution and underwriting standards.

• Adjusted after-tax income per diluted share grew 10% year-over-year to $2.00, while net income per diluted share declined 10% to $1.78 due to investment valuation changes.

• Core operating ROE reached 11.1%, and $904 million was returned to shareholders through share repurchases and dividends.

• Sale of remaining Corebridge Financial interest generated $710 million in proceeds, finalizing a multi-year separation process.

Financial highlights

• Adjusted after-tax income was $1.1 billion, up from $1.04 billion year-over-year; net income attributable to shareholders was $948 million, down from $1.14 billion.

• Book value per share increased 4% to $77.39; adjusted tangible book value per share rose 3% to $72.18.

• General Insurance combined ratio improved 30 bps to 89.0%; accident year combined ratio, as adjusted, improved 30 bps to 88.1%.

• Core operating ROE was 11.1%; return on equity was 9.4%.

• Net investment income fell to $1.13 billion from $1.47 billion year-over-year, mainly due to changes in Corebridge and equity securities valuations.

Outlook and guidance

• On track to achieve Investor Day goals and reduce General Insurance expense ratio below 30% for full year 2027.

• Financial targets for 2025–2027 include operating EPS CAGR of 20%+, core operating ROE of 10–13%, and dividends per share CAGR of 10%+ for 2025–2026.

• Management expects continued premium growth, disciplined underwriting, and expense management, with investment income pressured by market volatility.

• Will maintain underwriting discipline and selective capital deployment, focusing on profitable growth.