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Investor releaseQuarter not tagged2026-08-11AIG CEO on Earnings, Shipping in Hormuz, AI Buildout
Bloomberg
AIG CEO on Earnings, Shipping in Hormuz, AI Buildout
American International Group Inc. Chief Executive Officer Eric Andersen talks about how geopolitical risk is providing great opportunities to the insurer. He also speaks about clients that need to travel through the Strait of Hormuz, earnings, the ai buildout and how they use artificial intelligence. He speaks to Bloomberg's Romaine Bostick.
Investor releaseQuarter not tagged2026-08-07American International Group Q2 Earnings Call Highlights
MarketBeat
American International Group Q2 Earnings Call Highlights
Interested in American International Group, Inc.? Here are five stocks we like better. AIG reported solid second-quarter growth: adjusted after-tax income per share rose 10% to $2.00, while underwriting income increased 10% to $686 million and the adjusted accident-year combined ratio improved to 88.1%. Premium growth remained broad but selective: net premiums written rose 9% on a constant-dollar basis, led by Global Commercial and Global Personal Insurance, while AIG reduced exposure to underpriced North American property business amid competitive pressure. Capital and efficiency remained priorities: AIG returned $904 million to shareholders, completed its exit from Corebridge, and remained on track to reduce its General Insurance expense ratio below 30% by 2027 while expanding AI tools for underwriting and claims. Top 5 MarketRank™ Stocks Backed by Analysts and Big Institutions American International Group (NYSE:AIG) reported second-quarter results that management said reflected higher underwriting income, growth in selected commercial and personal insurance businesses, and continued expense discipline, while competitive pricing pressure persisted in North American property insurance. Adjusted after-tax income per diluted share was $2.00, up 10% from a year earlier, while adjusted after-tax income totaled $1.1 billion, President and CEO Eric Andersen said. Core operating return on equity was 11.1% for the quarter and 11.6% for the first half of 2026. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Higher-for-Longer Rates Could Reward These 3 Overlooked Stocks Underwriting income rose 10% year over year to $686 million. The adjusted accident-year combined ratio improved 30 basis points to 88.1%, while the calendar-year combined ratio also improved 30 basis points to 89.0%. Net premiums written increased 9% on a constant-dollar basis, or 11% excluding North American property. Andersen said growth reflected organic expansion in selected global commercial businesses, momentum in Global Personal Insurance, and contributions from recent strategic transactions. Global Commercial Insurance net premiums written rose 9% year over year. North America Commercial premiums increased 9%, supported by retail casualty and financial lines growth, partly offset by declines at Lexington property. International Commercial premiums increased 10%, led by prope…Read full documentShow less
Interested in American International Group, Inc.? Here are five stocks we like better. AIG reported solid second-quarter growth: adjusted after-tax income per share rose 10% to $2.00, while underwriting income increased 10% to $686 million and the adjusted accident-year combined ratio improved to 88.1%. Premium growth remained broad but selective: net premiums written rose 9% on a constant-dollar basis, led by Global Commercial and Global Personal Insurance, while AIG reduced exposure to underpriced North American property business amid competitive pressure. Capital and efficiency remained priorities: AIG returned $904 million to shareholders, completed its exit from Corebridge, and remained on track to reduce its General Insurance expense ratio below 30% by 2027 while expanding AI tools for underwriting and claims. Top 5 MarketRank™ Stocks Backed by Analysts and Big Institutions American International Group (NYSE:AIG) reported second-quarter results that management said reflected higher underwriting income, growth in selected commercial and personal insurance businesses, and continued expense discipline, while competitive pricing pressure persisted in North American property insurance. Adjusted after-tax income per diluted share was $2.00, up 10% from a year earlier, while adjusted after-tax income totaled $1.1 billion, President and CEO Eric Andersen said. Core operating return on equity was 11.1% for the quarter and 11.6% for the first half of 2026. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Higher-for-Longer Rates Could Reward These 3 Overlooked Stocks Underwriting income rose 10% year over year to $686 million. The adjusted accident-year combined ratio improved 30 basis points to 88.1%, while the calendar-year combined ratio also improved 30 basis points to 89.0%. Net premiums written increased 9% on a constant-dollar basis, or 11% excluding North American property. Andersen said growth reflected organic expansion in selected global commercial businesses, momentum in Global Personal Insurance, and contributions from recent strategic transactions. Global Commercial Insurance net premiums written rose 9% year over year. North America Commercial premiums increased 9%, supported by retail casualty and financial lines growth, partly offset by declines at Lexington property. International Commercial premiums increased 10%, led by property and marine growth and partially offset by financial lines. Global Personal Insurance premiums increased 8%, driven by Accident & Health and high-net-worth businesses. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Must-Watch Stocks After a Bullish Goldman Sachs Recommendation Global Commercial retention was 88%, while new business, including strategic transactions, reached $1.9 billion, an increase of 37% from the prior-year period. Chief Financial Officer Keith Walsh said first-half net premiums written grew 13%, which the company expects to support earnings growth as premiums earn through during 2026 and 2027. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Global Personal Insurance generated underwriting income of $114 million, nearly $90 million higher than a year earlier. Its adjusted accident-year combined ratio improved 490 basis points to 91.2%, aided by underwriting actions, lower reinsurance costs, and more favorable high-net-worth commission terms. Andersen characterized the insurance market as moving from a prolonged period of broad price increases to a more selective environment shaped by individual line-of-business conditions. He said additional market capacity from excess-and-surplus carriers, managing general agencies, delegated authority structures, insurance-linked securities and sidecars has pressured pricing in certain lines, particularly property. AIG continued to contract portions of its Lexington property portfolio where pricing did not meet its underwriting standards. The company reported a nine-percentage-point decline in Lexington property premium retention during the quarter. According to Andersen, the property environment and AIG’s deliberate underwriting actions reduced overall North America growth by more than three percentage points. North America retail property has a different portfolio composition from Lexington, and the company said it sees selected growth opportunities, including through its Everest renewal rights transaction. International property rates were declining more moderately than in North America, according to Andersen, who said the portfolio remains attractive because of lower peak catastrophe exposure. Casualty pricing remained more favorable. North America retail casualty pricing increased 10% and remained above loss-cost trends, while excess casualty pricing rose 14%. Excluding property, North America Commercial renewal pricing increased 5%. International Commercial renewal pricing declined 6% after several years of compounded rate increases. Global Energy pricing fell 15%, while Financial Lines pricing declined 4%. Management said it would remain disciplined where market conditions do not support adequate risk-adjusted returns. Andersen also said AIG had not seen evidence that social inflation was moderating and was not incorporating such an assumption into pricing. Walsh said the company strengthened U.S. excess casualty reserves by $74 million, primarily involving accident years 2016 and 2023. He said the adjustment to 2023 brought that year to a level of prudence similar to 2024 and 2025, and management was not seeing material deterioration or changes in frequency or severity. Second-quarter General Insurance adjusted pretax income was $1.5 billion, up 4% year over year. Net premiums earned increased 5% to $6.2 billion. Higher underwriting income and interest income were partly offset by lower income from alternative investments. Total catastrophe charges were $210 million, including $75 million in net losses related to the Middle East conflict. The company recorded $145 million of favorable prior-year development, driven primarily by favorable loss experience in U.S. workers’ compensation and U.S. property and special risks. Total net investment income on an adjusted pretax income basis was $908 million, including $871 million for General Insurance, which was flat year over year. Core fixed-income investment income rose 4%, and the annualized yield on the core fixed-income portfolio reached 4.72%, up 30 basis points from the prior-year quarter. Alternative investment income declined to $13 million from $48 million, reflecting an $8 million private-equity loss reported on a one-quarter lag. AIG returned $904 million of capital to shareholders during the quarter, including $641 million in share repurchases and $263 million in dividends. The company ended the quarter with $9 billion of debt and a total debt-to-adjusted-capital ratio of 17.6%. In May, AIG sold approximately 25 million Corebridge Financial common shares for $710 million, completing its exit from the former life and retirement business. Book value per share was $77.39 at June 30, up 4% from a year earlier, while adjusted tangible book value per share was $72.18, up 3%. Andersen said AIG remains on track to meet commitments established at its 2025 Investor Day. The company’s priorities include underwriting discipline, efficient use of reinsurance and the balance sheet, artificial intelligence deployment, expense management, and investment in talent. AIG said it remains on track to reduce the General Insurance expense ratio below 30% for full-year 2027. The trailing 12-month expense ratio stood at 30.7% at June 30, compared with 31.1% at the end of 2025. The company is expanding its underwriting and claims AI tools, which Andersen said are enabling underwriters to review more submissions and generate quotes faster. He also said the data can provide insights into broker-level performance and distribution trends. Management emphasized that its AI deployment is intended to improve colleague efficiency and client outcomes rather than reduce headcount. Andersen said AIG’s approach to capital management prioritizes profitable growth, but the company will continue to use dividends and repurchases if capital cannot be deployed at attractive returns. He added that AIG sees share repurchases as an attractive use of capital given its share price at a modest premium to tangible book value. American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk. The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American International Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.
Investor releaseQuarter not tagged2026-08-07AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
Zacks
AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
American International Group, Inc. AIG reported second-quarter 2026 adjusted earnings per share (EPS) of $2, which topped the Zacks Consensus Estimate of $1.89. The bottom line increased 10.5% year over year. Adjusted operating revenues advanced 3.9% year over year to $7.1 billion. However, the top line missed the consensus mark by 2.2%. The quarterly earnings were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses. However, the upside was partly offset by lower investment income and elevated benefits, losses and expenses. American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote Net premiums written totaled $7.5 billion, reflecting 9% year-over-year growth, driven by organic expansion in selected businesses and contributions from recent strategic transactions. Total net investment income declined 23.1% year over year to $1.1 billion, but beat the consensus mark by 14.9%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities. AIG also sold its remaining Corebridge stake for aggregate proceeds of about $710 million. Total benefits, losses and expenses amounted to $5.8 billion, up 4.9% year over year, mainly due to higher losses and loss adjustment expenses incurred. Adjusted return on equity improved 50 basis points year over year to 10.2%, reflecting enhanced profitability and capital efficiency. Underwriting income for the General Insurance segment rose 10% year over year to $686 million. This result significantly outperformed the Zacks Consensus Estimate by 9.1%. The segment’s combined ratio improved 30 basis points to 89%, reflecting significantly stronger underwriting performance compared with the prior-year quarter. The segment’s net premiums written increased 9% year over year to $3.1 billion in the second quarter. The uptick was driven by Retail Casualty and Financial Lines. Underwriting income grew 24% year over year to $372 million. This increase was mainly driven by lower catastrophe-related losses, lower operating expense and higher favorable prior-year development. The combined ratio improved 190 basis points to 84%, reflecting significantly stronger underwriting performance year over year. The segment reported net premiums written of $2.6 billi…Read full documentShow less
American International Group, Inc. AIG reported second-quarter 2026 adjusted earnings per share (EPS) of $2, which topped the Zacks Consensus Estimate of $1.89. The bottom line increased 10.5% year over year. Adjusted operating revenues advanced 3.9% year over year to $7.1 billion. However, the top line missed the consensus mark by 2.2%. The quarterly earnings were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses. However, the upside was partly offset by lower investment income and elevated benefits, losses and expenses. American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote Net premiums written totaled $7.5 billion, reflecting 9% year-over-year growth, driven by organic expansion in selected businesses and contributions from recent strategic transactions. Total net investment income declined 23.1% year over year to $1.1 billion, but beat the consensus mark by 14.9%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities. AIG also sold its remaining Corebridge stake for aggregate proceeds of about $710 million. Total benefits, losses and expenses amounted to $5.8 billion, up 4.9% year over year, mainly due to higher losses and loss adjustment expenses incurred. Adjusted return on equity improved 50 basis points year over year to 10.2%, reflecting enhanced profitability and capital efficiency. Underwriting income for the General Insurance segment rose 10% year over year to $686 million. This result significantly outperformed the Zacks Consensus Estimate by 9.1%. The segment’s combined ratio improved 30 basis points to 89%, reflecting significantly stronger underwriting performance compared with the prior-year quarter. The segment’s net premiums written increased 9% year over year to $3.1 billion in the second quarter. The uptick was driven by Retail Casualty and Financial Lines. Underwriting income grew 24% year over year to $372 million. This increase was mainly driven by lower catastrophe-related losses, lower operating expense and higher favorable prior-year development. The combined ratio improved 190 basis points to 84%, reflecting significantly stronger underwriting performance year over year. The segment reported net premiums written of $2.6 billion, up 11% year over year. The growth was mainly driven by Property and Marine. Underwriting income decreased 33% year over year to $200 million in the quarter and missed the Zacks Consensus Estimate by 35.8%. The combined ratio deteriorated 540 basis points to 91.3%. This was mainly due to higher catastrophe charges, rate pressure and a higher acquisition ratio. Net premiums written totaled $1.8 billion, which improved 7% year over year. The increase was mainly driven by growth in the High Net Worth and Accident and Health businesses. Underwriting income rose to $114 million compared to $25 million a year ago. The combined ratio improved 560 basis points to 92.9%. This was driven by a lower accident-year loss ratio, improved High Net Worth commission terms, reduced operating expenses and reduced catastrophe losses. Net investment income and other fell 58% year over year to $39 million. This was mainly due to lower parent liquidity and reduced dividends from Corebridge. Interest expense declined 2% to $99 million. Adjusted pre-tax loss widened 41% year over year to $142 million. AIG ended the second quarter with a cash balance of $1.5 billion compared with $1.3 billion at the end of 2025. Total assets were $163.5 billion, higher than $161.3 billion at the end of 2025. Long-term debt totaled $9 billion at the second-quarter end, which fell 0.7% from year-end 2025. Total shareholders’ equity fell to $40.6 billion from $41.1 billion at year-end 2025. Adjusted book value per share improved to $79.98 from $76.62 in the prior-year quarter. AIG returned capital to its shareholders through approximately $641 million in share repurchases and $263 million in dividends during the second quarter of 2026. The company announced a cash dividend of 50 cents per common share, to be paid on Sept. 30, 2026, to its shareholders of record as of Sept. 16. AIG currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader insurance space that have also reported their quarterly results: MetLife, Inc. MET, Aon plc AON and The Hartford Insurance Group, Inc. HIG. Here's how they have performed: MetLife reported second-quarter 2026 adjusted operating earnings per share (EPS) of $2.43, which beat the Zacks Consensus Estimate by 5.6%. The bottom line advanced 20% year over year. Adjusted operating revenues improved 6.4% year over year to $19.1 billion. MET’s second-quarter earnings benefited from improved net investment income, favorable underwriting results and solid business volume growth across segments. Growth in adjusted PFOs and strong performances in Group Benefits, Asia and EMEA also supported results. However, higher expenses and a wider-than-expected loss in the Corporate & Other unit partially offset the upside. Aon reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year. Total revenues of $4.2 billion grew 2% year over year. AON’s quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions. Hartford delivered second-quarter fiscal 2026 earnings per share of $3.42, up 6% year over year and above the Zacks Consensus Estimate of $3.12 by 9.6%. Revenues came in at $5.23 billion, which improved 6.8% year over year. HIG’s quarterly results benefited from higher investment income, premium growth in Business Insurance and improving Personal Insurance profitability. Strong new business expansion in Small Business and favorable pricing trends supported results. However, the upside was partly offset by an increased expense level, higher catastrophe losses and weaker Employee Benefits profitability. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report The Hartford Insurance Group, Inc. (HIG) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report Aon plc (AON) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
TranscriptFY2026 Q22026-08-07FY2026 Q2 earnings call transcript
Earnings source - 101 paragraphs
FY2026 Q2 earnings call transcript
Welcome to AIG's second quarter 2026 financial results conference call. This conference is being recorded. Now at this time, I would like to turn the conference over to Quentin McMillan. Please go ahead.
Thanks very much, Michelle, and good morning. Today's remarks may include forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based on management's current expectations. AIG's filings with the SEC provide details on important factors that could cause actual results or events to differ materially. Except as required by applicable securities laws, AIG is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change. Today's remarks may also refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is included in our earnings release, our financial supplement and earnings presentation, all of which are available on our website at aig.com. Finally, today's remarks related to net premiums written growth are presented on a constant dollar basis.
Please refer to page 26 of the earnings presentation for reconciliations of such metrics. With that, I'd now like to turn the call over to our President and CEO, Eric Andersen.
Good morning, everyone. Thank you for joining us today. I'm pleased to share our strong second quarter results and the meaningful progress we are making across AIG. Our team is executing well on delivering the financial commitments we outlined at our 2025 Investor Day, which we remain on track to achieve. On the call today, I will review our second quarter financial highlights, provide perspective on the current market environment, and discuss our strategic priorities that will guide our continued progress and growth. Following my remarks, Keith Walsh will provide more detail on our financial performance, and Jon Hancock will join us for Q&A. Now let me review a few financial highlights. In a dynamic environment, we delivered another strong quarter, which contributed to an exceptional first half of the year.
Our performance reflects the benefits of our diversified portfolio, continued momentum from organic growth in our strategic transactions, and disciplined execution by our talented team. Adjusted after-tax income per diluted share was $2, a 10% increase year-over-year, and adjusted after-tax income was $1.1 billion. Core operating ROE was 11.1% in the second quarter and 11.6% for the first half of 2026. Underwriting income was $686 million, a 10% increase year-over-year. The accident year combined ratio, as adjusted, was 88.1%, an improvement of 30 basis points from the prior year quarter. The calendar year combined ratio was 89%, also an improvement of 30 basis points over the prior year quarter. Net premiums written increased 9%, or 11% excluding North American property, reflecting organic growth in select high-performing segments of our global commercial portfolio.
Growth in global personal, driven by our Accident & Health and high net worth businesses, and contributions from our recent strategic transactions, which are providing meaningful growth in line with our expectations. Global commercial insurance net premiums written increased 9% year-over-year. North America Commercial net premiums written increased 9% year-over-year. We saw growth in retail casualty and across various segments of our financial lines portfolio, partially offset by declines in Lexington, driven by property, where we are continuing to take disciplined actions to effectively manage the competitive environment, which I will discuss in more detail. International Commercial net premiums written increased 10%, driven by growth in property and marine, partially offset by financial lines, where we continue to be targeted and disciplined in our underwriting.
In global commercial, retention was 88%, and new business, including our strategic transactions, was $1.9 billion, a year-over-year increase of 37%. Our team made outstanding progress improving the performance of our Global Personal Insurance business. Net premiums written increased 8% in the quarter, driven by momentum and Accident & Health, reflecting our team's ongoing focus on building a robust pipeline that has resulted in several notable new client wins, as well as continued organic growth in our high net worth business. Finally, we returned $904 million in capital to our shareholders in the second quarter, inclusive of $641 million in share repurchases and $263 million in dividends. Let me share some observations on the current market environment. There's a lot of conversation about where we are in the cycle.
I would characterize the market as transitioning from an extended phase of broad positive pricing into a more selective environment, where profitability and growth are increasingly dependent on line-specific dynamics. Over the last several quarters, capacity has increased significantly across the market, including through E&S carriers, MGAs and MGUs, delegated authority structures, ILS, and sidecars. This influx of capacity has created competitive pricing pressure in certain lines like property, we believe it has also created opportunities. Our experience shows that in this type of environment, clients tend to become more discerning about the origination of capacity. They distinguish among providers that are simply pass-throughs for third-party paper or focus solely on excess coverage from those that offer holistic solutions, along with underwriting excellence, client service, and responsive claims handling. This is where AIG is strongly positioned.
We are seeing this play out in property, where our expertise and the diversity of our global property portfolio are important advantages. Last quarter, we detailed the challenging dynamics in the North American property market, particularly in E&S, where pricing has continued to be under pressure, fueled by excess capacity and competition. Given the ongoing rate pressure, we have intentionally continued to contract our Lexington property portfolio in targeted areas while selectively growing the parts of the property portfolio we believe will deliver the best risk-adjusted returns. Where we see pricing that is not adequate, we are offering terms that reflect our view of the risks. As a result, we are retaining business where we can achieve acceptable terms while walking away from business that does not meet our underwriting standards.
This has resulted in a meaningful nine percentage point reduction in premium retention at Lexington property in the second quarter. The pricing environment, combined with our deliberate actions, have reduced overall growth in North America by over three percentage points. Our North America retail property portfolio has a different composition than our Lexington property portfolio. While the environment remains competitive, we continue to find targeted opportunities for growth, including through our Everest renewal rights transaction. In international property, rates are declining at a more moderate pace than in North America. This remains an attractive portfolio with opportunities in many countries for sustained profitable growth, supported by lower peak catastrophe exposure. Turning to casualty, our underwriting discipline and technical claims expertise have positioned us well across our portfolio. In North America retail casualty, pricing is up double digits and remains above loss cost trends.
While rate increases have moderated from the elevated levels we saw at the peak of the market cycle, we are focusing on maintaining rate adequacy and strong risk-adjusted returns. In North America excess casualty, we are achieving mid-teen pricing increases, and we have been disciplined on attachment points, terms and conditions, limits, and risk selection. In international casualty, we have a broad geographic portfolio with a significant portion of our business in markets with lower litigation environments. While there is increasing competition and pricing is beginning to become more competitive in some areas, we continue to see select opportunities for profitable growth, supported by our underwriting and claims expertise, as well as our differentiated multinational capabilities.
In global specialty, we are closely watching the energy and aviation markets, where we are seeing pricing that we believe does not fully reflect heightened exposure in the Middle East conflict and recent large industry losses. In contrast, political violence and terrorism rates increased in the second quarter, driven by the elevated risk exposure associated with the broader conflict. For example, our political violence pricing increased 9% in the second quarter compared to a decrease of 8% in the first quarter. We are also seeing broader demand for these products as clients sharpen their focus on risk mitigation and protection. In summary, across our global and diverse portfolio, we continue to deploy capital selectively where pricing, margin, and risk quality are within our appetite and deliver targeted risk-adjusted returns.
I'd like to expand on AIG's unique competitive advantages and how we intend to convert these strengths into sustained earnings growth and long-term value creation. AIG has an enviable global platform, deep underwriting expertise, a broad set of products and risk solutions, robust claims capabilities, and a team of outstanding colleagues. We also have one of the most recognized brands in the industry, which helps us compete in markets around the world. Together, these strengths make AIG a leading global underwriting company. Our durable foundation enables us to expand the ways in which we access business, deploy capital, and provide value to clients and distribution partners to become even more relevant in the market.
At the core of our strategy is a significant opportunity to become an essential partner to our clients by connecting our businesses more effectively across AIG and deploying capital in innovative ways to drive long-term value. Our growth plan is built around five strategic priorities. Delivering exceptional underwriting performance and deploying capital towards opportunities with the strongest risk-adjusted returns. Using our balance sheet and reinsurance program efficiently to support profitable growth while prudently managing volatility. Expanding our AI capabilities to improve decision-making, quality, and productivity. Maintaining expense discipline. Investing in our team and talent to strengthen execution, connectivity, and our ability to bring the full capability of AIG to our clients. Let me go deeper into how we will execute against each priority, beginning with underwriting performance and our strategic deployment of capital. Our colleagues have done exceptional work transforming AIG and building a stronger, more focused company.
That foundation allows us to be more responsive to client needs and more effective in supporting our partners while maintaining underwriting excellence. Across every line of business, we look at risk at the individual level, the portfolio level, and through the lens of different distribution strategies in order to bring forward innovative solutions. We are focused on growing attractive areas of our portfolio by bringing together AIG's global underwriting, claims, and risk expertise to help clients and partners better understand the risks they face and deliver more comprehensive solutions that support their evolving needs. Let's take data centers as an example. These are end-to-end multi-line projects for global AI hyperscalers that require financing, construction, marine, cyber, energy, operational, multinational programs, and bespoke risk solutions.
AIG is one of the few insurers that can bring all of these capabilities to the table with the expertise to manage the complex scale and timetable these projects require. We are demonstrating leadership in this area. Moving to our geographic presence, we are looking at opportunities to expand our reach in regions where we see attractive opportunities for disciplined growth. As an example, during the second quarter, we announced an agreement to acquire Everest Insurance operations in Colombia. Upon closing, it will give AIG access to one of the largest and fastest-developing insurance markets in Latin America, supporting our growth ambitions in the region. Beyond specific growth opportunities, our ability to bring AIG's full capabilities to clients navigating changing conditions and fast-moving risks is equally important.
In the Middle East, where the conflict remains highly fluid, especially around the Strait of Hormuz, we have continued to provide advice, capacity, and support to clients operating in the region. This is where our global platform and the expertise of our underwriting and claims teams really matters. We are staying closely connected to governments, marine and shipping clients directly exposed to developments in the Strait, and those on the ground managing supply chain constraints and other challenges. Our claims team has been working closely with clients to help them navigate these complex situations and respond quickly as conditions evolve. These examples demonstrate the demand of our diversified multi-line solutions and the significant value we can create when we operate as one globally connected team. Second, we will continue to use our balance sheet and reinsurance program to support profitable growth while managing volatility.
Over many years, AIG has built a consistent framework for generating underwriting profit through disciplined risk selection, prudent limits, and the strategic use of reinsurance. We benefit from an attractive portfolio and deep relationships with exceptional reinsurance partners. We achieve favorable outcomes at our June 1 reinsurance renewals. Reinsurance continues to be an important tool in managing volatility and tail risk. We evaluate our program continuously to ensure it remains aligned with market conditions and our return objectives. This disciplined approach extends to how we manage capital. Fundamentally, we believe in a balanced capital management philosophy. Our top priority is to grow the company profitably by expanding earnings, premiums, our invested assets, and our overall tangible book value. If we can't deploy capital at attractive returns, we will return it to shareholders through share repurchases and dividends.
Given our current share price at a modest premium to tangible book value, we view the repurchase of our shares as a very attractive use of capital. Third, we intend to continue to scale AI to improve decision-making, quality, and productivity across AIG. Technology and AI are central to how we are creating long-term value for clients, colleagues, and stakeholders, helping us make better decisions, unlocking capacity for growth, and enabling our teams to operate with greater speed, consistency, and effectiveness. As we have scaled Underwriting by AIG Assist and Claims by AIG Assist, our operational results remain strong and consistent. Where deployed, our underwriters are reviewing more submissions and generating quotes significantly faster, improving their productivity. Importantly, our AI capabilities also enable us to access valuable commercial insights, particularly in how we understand and engage with our broker partners.
As more submission data flows through Underwriting by AIG Assist, we can analyze broker-level results to gain greater visibility into their performance and distribution trends, including where we are seeing the most success. This information will enhance how we partner with brokers, provide a clearer view of the broader market ecosystem, and enable data-driven decisions that can create value across market cycles. We are pleased with the progress we are making and will continue to thoughtfully scale our AI capabilities across the company. Fourth, we will continue to maintain expense discipline while investing for growth. Our expense philosophy is focused on prioritizing resources in areas that directly serve clients and support sustainable growth. We are investing in underwriting talent in priority areas, strengthening how we engage with distribution partners, advancing our claims capabilities, and deploying technology to support these opportunities.
At the same time, we are refining our end-to-end processes to simplify workflows, reduce friction, and deliver efficiencies. This discipline should create capacity to fund our strategic priorities. We remain on track to reduce the General Insurance expense ratio below 30% for Full Year 2027. Fifth, we will continue to invest in our team and talent to strengthen execution, connectivity, and our ability to bring the full capabilities of AIG to clients. One of AIG's greatest strengths is the depth of talent across the company. Our colleagues are doing exceptional work managing market dynamics, advancing underwriting excellence, and serving as trusted experts to our clients and distribution partners. We have a deep bench of leaders across AIG and have made several internal promotions over the last few months, underscoring our commitment to developing and advancing talent from within.
At the same time, we are adding experienced external talent and new capabilities to strengthen connectivity across AIG, pursue emerging growth areas in key verticals and product lines, and reinforce a more agile, connected go-to-market culture. These internal promotions and targeted external appointments reflect our commitment to invest in our teams with talent that supports our strategic growth initiatives and help us build capabilities in areas where we see attractive returns. In closing, we continue to make significant progress on shaping the future of AIG as a market leader and best-in-class global underwriting company. Today, AIG has a stronger, more focused portfolio, talented and dedicated colleagues, a demonstrated commitment to underwriting excellence, meaningful growth opportunities, considerable potential to benefit from data technology and AI, a strong balance sheet, and significant financial flexibility. I am very enthusiastic about the future of the company and confident in AIG's next chapter.
That confidence reflects not only the achievements we have made, but the clear path ahead. We are well-positioned to drive value for our stakeholders over the long term, thanks to the dedication of our talented colleagues around the world. Their commitment to our clients, our partners, key stakeholders, and each other continue to differentiate AIG. With that, I'll turn the call over to Keith to review our financial results in greater detail before we take questions.
Thank you, Eric. Good morning. We had a strong Second quarter and exceptional first half of 2026. I will expand on the financial highlights. Second quarter General Insurance adjusted pretax income was $1.5 billion, up 4% from the prior year quarter, reflecting higher underwriting income and higher interest income, partially offset by lower income from our alternatives portfolio. Net premiums earned were $6.2 billion, up 5% year-over-year. Underwriting income increased 10% year-over-year to $686 million, driven by improved accident year underwriting results and more favorable prior year reserve development, partially offset by higher catastrophe losses. For the first half of 2026, General Insurance underwriting income increased 68% to $1.5 billion, reflecting an excellent 13% increase in accident year underwriting earnings, lower catastrophe losses, and more favorable prior year reserve development.
Overall, first half 2026 net premiums written grew 13%, which we expect to support earnings growth as it earns in over 2026 and 2027. Moving to second quarter underwriting ratios. General Insurance accident year combined ratio, as adjusted, was 88.1%, an improvement of 30 basis points from the prior year quarter. The improvement was driven by a lower expense ratio of 30.8%, which improved 20 basis points year-over-year. As we've mentioned in prior calls, it is better to look at our expense ratio over the course of the year to see the trend in underlying improvements. As of June 30th, 2026, the trailing 12-month expense ratio was 30.7%, reflecting increased operating leverage and continued expense discipline. As Eric stated, we are on track to bring our expense ratio below 30% for Full Year 2027.
The accident year loss ratio, as adjusted of 57.3%, improved 10 basis points from the prior year quarter. Total catastrophe charges for the quarter were $210 million and included $75 million in net losses related to the Middle East conflict. Prior year development, net of reinsurance and prior year premium, was $145 million favorable and included $146 million of net favorable loss reserve development, $26 million of ADC amortization, and $27 million of prior year return premiums. The favorable development was driven primarily by continued favorable loss experience, most notably in U.S. workers' compensation of $177 million and U.S. property and special risks of $79 million. This was partially offset by strengthening in U.S. excess casualty of $74 million, predominantly in accident years 2016 and 2023.
Specifically, in 2023, we took the opportunity to slightly increase that accident year to bring it in line with the level of prudence reflected in 2024 and 2025. There are several key factors in our process that give us confidence in our reserves. First, the continued execution of our limit management strategy has resulted in lower limits with tighter terms and conditions across our portfolio. Second, our comprehensive reinsurance program helps to mitigate severity risk while providing an additional layer of external validation from our reinsurance partners about our assumptions. Third, we conduct a review of the entire portfolio every 90 days, allowing us to identify emerging trends earlier and react quickly. We complement this with monthly looks at actual versus expected movements and regular interactions to inform the underwriting, claims, and actuarial feedback loop. We continue to feel confident with our reserve position.
Overall, second quarter General Insurance calendar year combined ratio improved 30 basis points year-over-year to 89.0%. The combined ratio for the first half of the year was 88.1%, an improvement of 450 basis points, an outstanding result. Moving to segment results. North America Commercial accident year combined ratio as adjusted was 86.7%, an increase of 50 basis points over the prior year quarter. The accident year loss ratio as adjusted was 63.4%, an increase of 30 basis points, driven by changes in business mix as we reduced certain property lines and earned in more casualty business, combined with rate pressure, particularly in property. The expense ratio increased 20 basis points, driven by the acquisition ratio, which was 50 basis points higher due to mix change, while the GOE ratio improved by 30 basis points.
This quarter included 410 basis points of catastrophe losses and 680 basis points of favorable prior year development. Overall, North America Commercial calendar year combined ratio was 84.0%, an excellent result and an improvement of 190 basis points from the prior year quarter. International Commercial accident year combined ratio as adjusted was 87.3%, an increase of 230 basis points. The accident year loss ratio was 55.2%, a 100 basis point increase year-over-year, reflecting rate pressure partially mitigated by underwriting actions and reinsurance benefits. The expense ratio rose 130 basis points to 32.1%, driven entirely by a higher acquisition ratio. The increase in the acquisition ratio was primarily driven by strong new business growth and changes in business mix.
While our recent strategic transactions benefited the overall expense ratio in the quarter, they contributed to a higher acquisition ratio, which was more than offset by the benefits in the GOE ratio. The International Commercial calendar year combined ratio of 91.3% included 390 basis points of catastrophe losses, driven by $75 million of net losses related to the Middle East conflict. Moving to Global Personal. The business generated strong growth momentum in Accident & Health and high net worth, as Eric outlined, while delivering continued profitability improvement. Second quarter underwriting income of $114 million increased nearly $90 million year-over-year, and our adjusted accident year underwriting income more than doubled. The accident year combined ratio as adjusted was 91.2%, a 490 basis point decrease year-over-year, driven by strong improvement in both the accident year loss ratio and expense ratio.
The accident year loss ratio improved 270 basis points to 51.5%, driven by underwriting actions and lower reinsurance costs. The expense ratio improved 220 basis points, primarily driven by continuing benefit of more favorable high net worth commission terms. This quarter included 170 basis points of catastrophe losses and de minimis prior year development. Second quarter calendar year combined ratio was 92.9%, an improvement of 560 basis points year-over-year. For the first half of 2026, the combined ratio was 91.2%, a 1,200 basis point improvement. We are pleased with the progress we are making as the actions we've taken to reposition the portfolio continue to earn through. Moving to pricing, starting with North America Commercial. Eric outlined details of the property market, so my comments will focus on other lines. Excluding property, North America Commercial renewal pricing increased 5% year-over-year.
North America Casualty pricing remains favorable, with Retail Casualty pricing increasing 10%, exceeding loss cost trend, and including a 14% pricing increase in Excess Casualty. In Glatfelter and Programs, which focus on small and medium businesses, pricing increases were 7% and 5% respectively. In Financial Lines, our pricing excluding cyber was flat for the quarter, which improved from the prior year. We have been successful in obtaining rate across all segments of our book, and in targeted classes of D&O, we have seen positive pricing change. Overall, we believe Financial Lines will be less of a headwind moving forward. In International Commercial, renewal pricing declined 6% following multiple years of compounded rate increases. By line of business, Global Energy saw pricing decrease 15%, and Financial Lines pricing was down 4%.
Where the market conditions are highly competitive, we will focus on preserving margin and being disciplined in the application of our underwriting standards. Moving to net investment income. Second quarter total net investment income on an APTI basis was $908 million. General Insurance net investment income was $871 million flat year-over-year. In our core fixed income portfolio, net investment income grew 4% from the prior year quarter. During the second quarter, we continued to reinvest at higher yields, with the average new money yield on our core fixed income portfolio roughly 60 basis points higher than sales and maturities. The annualized yield was 4.72%, a 30 basis point improvement over the prior year quarter. The steady growth in our core fixed income portfolio was partially offset by lower alternative investment income of $13 million, down from $48 million in the prior year quarter.
The decline was due to private equity, which posted a loss of $8 million. As a reminder, private equity is reported on a one-quarter lag, and the second quarter results reflected the market volatility and valuation marks from the first quarter of 2026. We continue to execute on our previously announced investment partnerships, where we have deployed capital and expect to see the benefits moving forward. Moving to other operations. Second quarter adjusted pre-tax loss was $142 million versus a loss of $101 million in the prior year quarter. The difference was driven by lower net investment income and other of $39 million compared to $92 million in the prior year quarter, which included $27 million of Corebridge dividends. In addition, the current quarter had lower short-term investment income. Turning to capital management, we have a strong balance sheet and significant financial flexibility.
Our capital management priorities remain focused on deploying capital to support profitable growth and delivering attractive long-term returns to shareholders. We maintained our strong financial position and ended the quarter with $9 billion of debt outstanding and a total debt to adjusted capital ratio of 17.6%. In May, we sold approximately 25 million shares of Corebridge common stock for $710 million, which was the remainder of our holdings. This sale marks the culmination of our five-year separation process and a significant milestone as we've transformed into a focused global property and casualty insurer. Book value per share at June 30th, 2026, was $77.39, up 4% from the prior year quarter, reflecting growth in net income, as well as the favorable impact of lower interest rates, partially offset by capital returned to shareholders through dividends and share repurchases.
Adjusted tangible book value per share was $72.18, up 3% from the prior year quarter. In summary, we delivered a strong second quarter with excellent underwriting results that contribute to an exceptional first half of 2026. We remain on track to deliver on our Investor Day goals. With that, I will turn the call back over to Eric.
Thanks, Keith. Michelle, we're ready for questions.
Thank you. If you'd like to ask a question, please press star 11. If your question has been answered and you'd like to remove yourself from the queue, press star 11 again. Our first question comes from Alex Scott with Barclays. Your line is open.
Hey, good morning. First one I had for you is on the leverage in the business. When I look at AIG, you guys have done so much in the combined ratio and expenses, you really look similar to peers on a lot of those metrics now. The ROE is still lower than peers, mostly because of, I think, the premium leverage in the business. I just wanted to get your feel on how do you think about the excess capital that you have? Is there anything structural that prevents that from moving up more significantly? How do you manage that through a soft market where it's a little bit more difficult to grow?
Thanks, Alex. There's a lot of questions in there. Let me start by saying just from an excess capital standpoint first. As an insurance company, we're pretty fortunate to have a rock solid balance sheet. As I think I said in the prepared remarks, we see a lot of opportunities to grow the business. Our preference is to focus on growing into the capital base. At the same time, I think we've demonstrated that we're big believers in returning capital through buybacks and dividends, which is a focus for us as well. I think you also saw that we've entered into select targeted transactions over the last 12-24 months that do contribute to premium volume and capabilities, which has been additive to the portfolio. We're going to continue to look for things that fit that same category. Ultimately, we're well capitalized.
We have strong liquidity. We have debt capacity, three important strengths that drive and are so important for us as a global insurer. Ultimately, to get to the high end of the ROE range that we talked about in Investor Day, it requires strong execution around underwriting, around expense discipline, investment income, capital management. We're focused hard on the underwriting profitability. We're focused hard on driving higher yields. Then talking through how we actually support the balance sheet with the financial flexibility. We feel pretty good about where we are, and we see a lot of opportunities in the future.
Very helpful.
Thank you. Our next question comes from Meyer Shields with KBW. Your line is open.
Great. Thanks so much. We've heard a number of executives talk about how social inflation in the U.S. may be leveling off or moderating a little bit, I'm wondering, setting aside what you're booking and what you're embedding in pricing, what are you monitoring and what are you seeing in terms of the pace of social inflation?
Hey, Meyer. Thanks for the question. I think there's been a lot of talk around social inflation and litigation funding and all the aspects that have been driving everything from nuclear verdicts to just overall cost increases. I would say there's been some efforts in some states, whether it was North Carolina around litigation funding, New York on auto reform, all good green shoots, we haven't seen anything that says that it's moderating at this point, and we're certainly not building that into our pricing at this stage.
Okay, perfect. A quick question for Keith. You talked about getting accident year 2023 excess casualty sort of in line with subsequent years, and I understand why that wouldn't have an impact on any need for changing this year's loss picks. What about accident year 2022, 2021? Is there significant IBNR there that would also need to be reviewed?
Hey, Meyer, this is Eric. Let me just jump in, and I just want to provide one or two comments before Keith answers that question, which he will do well. I think he laid out in the prepared remarks sort of the factors around our reserving process, right? Whether it was the limit management strategy, the re-underwriting, the reinsurance program, the reserving philosophy. I personally spent a lot of time in the last couple of months going through with the team our reserving process, how we build the loss picks at a granular level, what the actuarial claims and underwriting triangulation does to get ahead of trends, the robust governance over it. I feel really good where we are. With that, Keith, why don't you add a little bit of color?
Thanks a lot, Eric. Meyer, as we look at our reserves as ranges of estimates that are formed by different methods and assumptions, Eric commented on our process, I won't repeat that. What I'll tell you is we made the comment predominantly in accident years 2016 and 2023, and that's where we saw the impact. Our experience, specifically on 2023, is broadly in line with our expectations, and we continue to be in our expected range of outcomes, and that includes the more recent accident years as well. For 2023 specifically, we took the opportunity to move up in the current range, and that now brings us to a similar level to years 2024 and 2025. We're not seeing material or any real deterioration in 2023 and no change in frequency or severity.
We just felt it was simply prudent to move up in that range to be more consistent.
Okay. Thank you.
Thank you. Our next question comes from Brian Meredith with UBS. Your line is open.
Thanks. Two quick ones. First, I guess for Keith, I'm just curious, Keith, you talked about how the acquisition ratio is kind of turning up a little bit because of mix shift. What is the impact that's having on your core loss ratios? Do you expect that to continue to kind of trend upwards here as perhaps you shift out of property and more into the casualty lines?
Listen, let me just open with that for a second because I do think it's important to just lay a few comments on top of it. Certainly, as rates moderate across the portfolio, you're going to see some pressure on the loss ratios. It's something we watch. I think in the prepared remarks, we mentioned what we've been doing in the E&S portfolio. We mentioned that we're talking or we're looking at the energy business just to make sure that we're getting the right price for the risk-adjusted return that we're looking for. Business mix is going to be an important part of this. I think on the acquisition ratio, I think the point we're trying to make here is that there are certain portfolios and certain transactions that may add to the acquisition cost, but ultimately, you provide less expenses to that portfolio.
It improves the overall expense ratios, but it just comes in different buckets. I think what we're trying to do is get you to look across the whole in its entirety versus the individual pieces. With that, Keith, anything you would add?
Yeah, thanks, Eric. Just specifically on the loss ratio piece, mix is a big part of it, Brian, as you mentioned, and we've been talking about this for several quarters. As we have pulled back or reduced in the property market, and remember, second quarter is a very large quarter, and we've gotten larger in casualty, you tend to get that mix shift and you get the loss ratio tick up a bit. More broadly speaking, you've seen this in the commercial lines book for five of the last six quarters, right, as we've moved forward. I'll just make a broader comment, and this goes back to what we've been saying for the last couple of years.
Our accident year combined ratio adjusted margins have largely held, and that's a function of some of the pressures you're seeing in commercial lines loss ratios being offset by the really strong work that was done on the personal insurance side, as well as the progress we continue to make on the expense ratio. We feel really good about where we're at with our overall margins.
Eric, just curious, thanks for all the commentary on kind of growth and how you're thinking about growing here. How do you think about the pricing environment in your context of what the growth outlook is here and how you're thinking about growth via organic or inorganic? Are you thinking we're going to see consistent kind of pricing out like we are today and things get more competitive? Do you think maybe look more towards inorganic versus organic? Maybe give us a little color around that.
Sure. It's a great question, and it's something we talk a lot about. Listen, from a components of growth standpoint, we did 9% in the quarter, and we did 13% in the first half. When we talk about the strategic transactions versus what we're doing organically, it's getting more difficult to distinguish between the two when you think about our underwriters and the way they are approaching each client and each program. Whether it's an Everest renewal placement on top of an AIG placement, certainly how we work that down into a structure for a client is important. We take a client view as opposed to a transaction view, but we do manage it internally just to make sure we've got eyes on it, as you would expect.
For us, it's really about can we get access to the right products at the right pricing with the right terms and conditions to be able to sort of do that with our clients. As I said in the prepared remarks, we're not opposed to continuing to look for strategic opportunities where we can deploy capital and get the right return for ourselves, whether that's in the U.S., whether that's around the world, we're going to continue to do that because I do think it allows us to continue to broaden our relationships with our clients. It often brings new talent and new skill sets to the organization. It's something you're going to see us continue to do.
Thank you.
Thank you. Our next question comes from Michael Zaremski with BMO. Your line is open.
Great. Thanks. Good morning. Back to the topic of growth. Relative to the mid, maybe upper end range of the ROE goals that you set out at the Investor Day last year, which, Eric, you mentioned on the call this morning. How big of a factor is the high single-digit to low double-digit premium growth to get to that range in terms of operating leverage ultimately?
Listen, let me start with a couple of opening points. Then I'm going to ask Jon Hancock to jump in as well to get his perspective. As I said a few minutes ago, we're having a great growth year. 13% in the first half, I think, is an excellent result. We are at a point in the cycle where cycle management becomes a primary tool to make sure that we maintained a disciplined approach to the market. We do think there's attractive organic opportunities in the market. We're going to continue to be selective to be able to position ourselves across all three of our segments. Maybe if you think about the strategic transactions we did, we knew going into this year that growth was likely going to be more challenging.
Converting them has been a big priority for the work that the team has been doing over the last 6 to 12 months as those things have come online. Listen, the property market continues to be under broader pressure. We talk about the E&S market a lot, but certainly internationally, which doesn't have as much volatility, but certainly seems to want to mimic the U.S. market more and more as the days go by. Casualty remains pretty attractive. We're seeing the rate increases in the book that we need and to be able to hit our risk-adjusted returns. We like the international portfolio. Overall, we actually see some great opportunities. Jon, why don't you chime in with your thoughts?
Okay. Yeah. Thanks. I won't repeat what you and Keith have already said. I think it's worth just repeating. We take a prudent approach. We know where we are in the cycle. This isn't the first time any of us have experienced a market cycle, isn't it? We've been expecting it. We've been preparing for it. We're managing it for sure. Eric said a couple of times, we have a really diverse portfolio across the globe. We're seeing different market dynamics and different risk attributes, actually, in different parts of the world. Yeah, it's a competitive market for sure. Lots of good growth opportunities. Without repeating what's been said, I'll give you a couple of examples, I think, which are relevant. Global Specialty, which we talk about a lot.
We're market leaders in all of those segments. We've seen several years of significant rate increase and strong profit. That leadership means we can go after the business we want and at the same time remain disciplined about obtaining the right risk-adjusted returns to hit those targets we talk about. We expect to continue to grow. I'd also call out Global Energy within that Global Specialty portfolio, strategically important to us. It's one of the strongest long-term underwriting franchises we've got. Right now, we're not happy with what we're seeing going on in the market, in terms of pricing, which we don't believe is reflective of the loss activity or the underlying risks, actually. We're not an index to the market. We've got a great leadership team, huge amounts of management data. We're taking the right actions all the way through.
We're watching it carefully. In the meantime, we pick our way through the best opportunities. Just give one more flip to probably the opposite end of the risk spectrum, actually. We've talked about it a couple of times on the call. We talk about Accident & Health a lot. Many ways it is the opposite of Global Specialty, high volume, low limit. We're recognized as a leader in A&H. We've been starting to show some really solid growth, which we expect to continue. We've got a global footprint in A&H. We see good near and long-term opportunities in a lot of the countries we operate. We've got a great pipeline already delivering some notable wins. We expect to see more. Two micro examples across a broad portfolio.
Thanks, Jon. Maybe just to put a bow on that topic. It does in this market, and with our diversified portfolio, gives us a chance to play both offense and defense under different market environments. We're focused on converting these advantages. Profitability is always the North Star. We want to make sure as we grow, we're growing in a smart, prudent way.
Just quickly a follow-up, a question on technology, but it dovetails on the growth conversation again. At the Investor Day and subsequently, you guys have discussed some kind of exciting initiatives to, I guess I'd phrase it as get more business through the pipes in terms of being able to respond to submissions, et cetera. Maybe you can kind of update us of, is that having a noticeable difference yet, or is that still kind of more of a work in progress? Thanks.
That's a great question. I would say, maybe just from a little bit of personal perspective on it, then we'll go into what AIG has been doing, which I do think is industry leading and very exciting for our company. Just from my background, an area of focus over many years has been working on the end-to-end insurance process, identifying ways to make it more efficient, more scalable, more effective.
Everything from how do we get more business to how do we process it more efficiently and how do we make sure we're delivering a better colleague experience and a better client experience, which are really a term you're going to hear us anchor to in the future, making sure that all the investments that we're making really do improve our colleague experience and how they do their business, whether it's an underwriter, an underwriter assistant, a claims person, someone that works in one of our corporate functions. Ultimately, they have to drive client outcomes, whether it's new business for us and new products for them, whether it's better claim service, whether it's speed of the business of insurance, whether it's invoices or policies or all those things.
Really focused on anchoring to what makes it better for our colleagues first, then what makes it better for our clients. I would say over the last couple of months, I've been investing a lot of personal time in with our team, making sure that I'm up to speed with AIG strategy, whether it's the relationships we have with our great partners. Really more importantly, how are we rolling out AIG Assist, Underwriting by AIG Assist and Claims by AIG Assist, that as we've been talking about in prior quarters, that we're actually getting it into the hands of our colleagues, and we're able to see advantages that grow from that investment. I talked a little bit in the prepared remarks about the broker-level insights.
I could've talked about the speed and the number of submissions, which I think we've talked about in the past, which continues to happen for us. We're seeing more business, we're quoting more business, and we're able to actually get a better line of sight on consistency in the underwriting speed in the process. We feel really good about that, and we're going to continue to drive that forward. The broker-level insight, we wanted to point out, is something a little bit different.
That what we're learning as we go through the volume and in a way where our AI strategy gives us better insight is as we're dealing with our distribution partners, we're able to learn pretty quickly where we're seeing better business from an office, from a firm, from an office down to a broker, which gives us the opportunity to pivot and actually spend the right resources where we are getting the best outcomes. We're at early days of that, and it was sort of a derivative outcome to all the work we've been doing around Underwriting by AIG Assist. As we roll that through the organization, the ability to use our client distribution teams and our broker distribution teams to focus in on where we see our best opportunities, we think will make it more efficient.
It may not be more submissions, but it might be better submissions that match our appetite with partners and clients that want to use our organization to handle their risk needs. Early days on that, but an exciting new piece for us and really just underscores making these kind of investments as you innovate and lead in this space does provide benefits that we didn't necessarily see going into this, but ultimately is something as we connect our sort of front-end facing part of the organization, really starting to work that angle pretty hard.
Thank you.
Thank you. Our next question comes from Rowland Mayor with RBC Capital Markets. Your line is open.
Hi. Good morning. Thank you for letting me on the call. I was wondering if you could size the premium contribution from the Convex quota share in the quarter. I think it would be helpful since there's built-in growth from that over the next few years.
Listen, I would say when you look at the 9% in the second quarter and the 13%, we've talked about it coming in a couple of different buckets. Certainly the organic number, somewhere I would call low to mid-single digits. Honestly, as I said before, with the Everest transaction, gets a little difficult to track as we start to go client by client where we have a shared relationship. The rest of it fills in with some of the other transactions. We haven't really broken out the pieces. Just to give you some sense, we talked a little bit about the reinsurance tailwind in the first quarter. That's largely dissipated in the second. The rest of the transactions kind of fill in the rest of the percentages.
Thank you. Then maybe going a bit of a different direction. Corporate debt issuance to support AI build-out has been a growing topic of interest, I'm just wondering if in your fixed income portfolio, you're starting to have significant allocations to AI-related corporate debt.
Yeah. Go ahead, Keith.
Yeah. Rowland, thanks. We don't have significant allocations to AI-specific related debt. I did mention on the last quarter call a bit about within private credit, direct software exposure, for example, is 16 basis points of the portfolio. I would say any of these allocations are pretty immaterial at this point.
Great. Thank you so much.
Thank you. Our next question comes from Pablo Singzon with JPMorgan. Your line is open.
Hi. Good morning. The global personal lines business combined ratio has been running close or better to your Investor Day target for the past several quarters. How much of that, in your view, is the result of a generally favorable environment for personal lines versus changes that you have put through and perhaps your mix as well, right? Because we recognize that there are other lines in there aside from homeowners and personal auto. Any perspective would be helpful. Thanks.
Sure. Listen, I think it's always hard to put those answers in specific buckets because they all have an impact on it, but we're excited about what's happening with the global personal business. We highlighted in the prepared remarks the growth that we're seeing, 7% NPW growth, 220 basis point improvement in the expense ratio, 490 basis points improvement in the combined ratio. All really positive and positive direction. We're excited about the business in general. We see it as an opportunity for us to really expand and connect the firm globally and in areas that are pretty exciting. The high net worth profitability, it was premium growth, it was underwriting actions, it was some reinsurance savings, lower acquisition costs, running the business better around operating expenses. Then Jon talked about the A&H business. We're starting to see some good growth with the building pipeline.
We're investing behind that leadership team. We feel like they are really world-class and have really got the business line growing for us. It has some cat to it, as we all know, especially the high net worth business. We've been a little bit fortunate, but ultimately, I think the fundamentals of the business are very solid, and we continue to invest in it.
Thanks for that. Then second, just on expenses, you had mentioned you're on track to reach your 30% target. The expense ratio ticked up sequentially, but I think that reflects the seasonality in your reporting, right? Maybe if you could talk about your expectations for the second half and more broadly, how you think expense management and perhaps newer tools like AI will help you in subsequent years. Thank you.
Great. Maybe I'll take it first, and then maybe I'll turn it to Keith for some additional color. As we said in the prepared remarks, we remain on track to achieve the sub 30% expense ratio for Full Year 2027. That's been something that the organization has been on a journey on, even before the Investor Day commitment. Obviously, it's a focus for us. Why are we confident about it? We are really disciplined on expenses, and we've made tremendous progress. The growth that we're achieving in 2026 is gonna bring some strong operating leverage. I would just say before Keith probably says it three more times, you can't really look at it quarter to quarter. It does have fluctuations. Look at it over a rolling 12 months. Keith, why don't you go from here?
Yeah, Pablo, thanks for the question. I appreciate it can sometimes be difficult, on the outside, the quarter-to-quarter movements. That's why we've always stressed looking at it over the course of a year or a longer stretch of time. As Eric said, we continue to make progress. Just a couple points, not to belabor, but I'll say it again, three points. Point one, on a rolling four quarters, which I think is the best way to look at it to see the trend, we're at 30.7%. Just keep in context, we ended 2025 at 31.1%, right? We continue to make progress on that metric. Point two, premium leverage, right?
As Eric has stated, the written premium is quite strong this year, and as that earns in, that will continue to give us leverage on this ratio as we move forward, as our net premiums earned grows. Point three, expense discipline. Another way to look at it, is looking at the nominal numbers. I think that's really important to give it another view. What I do is you look at the GOE and the other expenses in the corporate segment, add them together, and if you look at for the second quarter and the first half, those expenses were flat year-over-year, FX adjusted against 5% premium growth. It shows the expense discipline and the leverage that we're getting and why we have confidence going forward we'll continue to get that.
Maybe one more comment. I think you also asked about the AI expense and whether we'll see that as a help. Ultimately, how we become more efficient, technology will play a big role in it. If the underlying question was really about headcount, the strategy for us on the deployment of AI is not to have less colleagues, but to have our colleagues become more efficient and work with more clients. That's really where we're going with the investments, and that's how we're looking at it. I think that's why we went hard at the center of the business. When we went to underwriting, we went to claims. That's what we do, and we feel really strongly that the rollout of our AI strategy will help us be better in both.
Certainly, with the underwriting side of it, you see more, you get more consistent, you learn distribution things as we were talking about. On claims, our ability to interact with our clients faster, more efficiently in a way that helps them solve, either get their claim paid quickly or at least to respond to them in a way that they feel like they're being cared for, I think helps us build brand and helps us build relationships that ultimately help us drive more business and help us hold the business that we have.
Thanks, both.
Thank you. Our next question comes from Elyse Greenspan with Wells Fargo. Your line is open.
Hi, thanks. My first question, I don't think you guys gave an update on the premium growth guide, right? Which was low to mid-teens for the year. It does sound like maybe a bit more cautious on property that we've heard from others. Do you think you're at the low end or maybe a bit below that, as we think about potential growth in the second half?
Listen, I think it's a marketplace right now, right? As we look into the second half, we're pretty happy with the 13% through the first half and 9% in the quarter. Ultimately, what we've been trying to communicate is that we're not going to chase growth blindly, that we want to make sure we maintain our underwriting standards and we maintain the discipline because we want to be a profitable, well-run organization over a long period of time. We're going to react to the market cycle as it is. That said, we do see opportunities for growth, and we're pushing really hard in that space to make sure that we are taking advantage of every opportunity that we have. It's still a little early in the year. Right now, we feel really good about where we are.
My second question. One target you guys didn't address today, right, was the leverage target, which had been 15%-20%. Obviously, that was taken down through the years, and that's lower than what we typically see from some P&C companies. Is there thoughts about potentially bringing that up or changing that target at some point as a way to free up capital, whether for growth, M&A or incremental capital management?
Hey, Elyse, it's Keith. We haven't reiterated that 15%-20% in quite some time. Obviously, we're at 17.6%. We're within that range. We run with a conservative leverage in the company, and we have a lot of dry powder, and we feel really good about where we're at. We have a Euro bond that will be coming, get refinanced later in the year, that will be due early next year. At this point in time, we like our leverage situation where it's at.
Thank you.
Thank you everybody for joining the call today. I just want to express my sincere appreciation to our colleagues around the world, as well as our clients and partners. I also want to give a special thank you, if I can, to Peter Zaffino. His partnership throughout this transition has really been fantastic. His guidance has been great, and I think the overall organization has benefited from it, and I certainly have as well. I'm looking forward to building on the foundation in the months ahead and sharing our continued progress. We'll talk next time. Thank you very much.
Investor releaseQuarter not tagged2026-08-06American International Group: Q2 Earnings Snapshot
Associated Press
American International Group: Q2 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — American International Group Inc. (AIG) on Thursday reported second-quarter profit of $948 million. The New York-based company said it had net income of $1.78 per share. Earnings, adjusted for non-recurring costs, came to $2 per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.89 per share. The insurer posted revenue of $7.09 billion in the period. Its adjusted revenue was $7.11 billion, which fell short of Street forecasts. Four analysts surveyed by Zacks expected $7.27 billion. American International Group shares have fallen 6.5% since the beginning of the year, while the S&P's 500 index has risen 13%. In the final minutes of trading on Thursday, shares hit $79.97, a rise of 1% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AIG at https://www.zacks.com/ap/AIG
Investor releaseQuarter not tagged2026-08-06AIG Delivers Strong Second Quarter Results and Exceptional First Half of the Year
Business Wire
AIG Delivers Strong Second Quarter Results and Exceptional First Half of the Year
General Insurance net premiums written (NPW) of $7.5 billion, an increase of 9% year-over-year on both a reported basis and a constant dollar basis*, driven by growth across all three business segments General Insurance underwriting income of $686 million, an increase of 10% year-over-year General Insurance combined ratio of 89.0% and Accident year combined ratio, as adjusted* (AYCR) of 88.1%, a 30 basis point improvement year-over-year in both metrics Net income per diluted share of $1.78, a decrease of 10% year-over-year; Adjusted after-tax income* (AATI) per diluted share of $2.00, an increase of 10% year-over-year Return on equity (ROE) of 9.4% and Core Operating ROE* of 11.1% Returned $904 million of capital to shareholders, including $641 million of share repurchases and $263 million of dividends in the quarter On May 7, AIG sold its remaining interest in Corebridge Financial, Inc. (Corebridge) for aggregate proceeds of approximately $710 million NEW YORK, August 06, 2026--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today reported financial results for the second quarter ended June 30, 2026. "AIG delivered another strong quarter, marking an exceptional first half of the year and underscoring the benefits of our diversified global portfolio and continued momentum from organic growth and our recent strategic transactions," said Eric Andersen, AIG President & Chief Executive Officer. "Adjusted after-tax income per diluted share was $2.00, increasing 10% year-over-year, and Core Operating ROE was 11.1%. Net premiums written grew 9% year-over-year on a constant dollar basis, or 11%* excluding North America Property, supported by top-line growth across all three business segments. We produced another solid quarter of underwriting profitability, with General Insurance underwriting income of $686 million, a calendar year combined ratio of 89.0% and an accident year combined ratio, as adjusted, of 88.1%. "Our strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment, where profitability and growth are increasingly dependent on line-specific dynamics. The breadth of our underwriting expertise and the diversity of our global portfolio remain important competitive advantages, allowing us to continue to pursue t…Read full documentShow less
General Insurance net premiums written (NPW) of $7.5 billion, an increase of 9% year-over-year on both a reported basis and a constant dollar basis*, driven by growth across all three business segments General Insurance underwriting income of $686 million, an increase of 10% year-over-year General Insurance combined ratio of 89.0% and Accident year combined ratio, as adjusted* (AYCR) of 88.1%, a 30 basis point improvement year-over-year in both metrics Net income per diluted share of $1.78, a decrease of 10% year-over-year; Adjusted after-tax income* (AATI) per diluted share of $2.00, an increase of 10% year-over-year Return on equity (ROE) of 9.4% and Core Operating ROE* of 11.1% Returned $904 million of capital to shareholders, including $641 million of share repurchases and $263 million of dividends in the quarter On May 7, AIG sold its remaining interest in Corebridge Financial, Inc. (Corebridge) for aggregate proceeds of approximately $710 million NEW YORK, August 06, 2026--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today reported financial results for the second quarter ended June 30, 2026. "AIG delivered another strong quarter, marking an exceptional first half of the year and underscoring the benefits of our diversified global portfolio and continued momentum from organic growth and our recent strategic transactions," said Eric Andersen, AIG President & Chief Executive Officer. "Adjusted after-tax income per diluted share was $2.00, increasing 10% year-over-year, and Core Operating ROE was 11.1%. Net premiums written grew 9% year-over-year on a constant dollar basis, or 11%* excluding North America Property, supported by top-line growth across all three business segments. We produced another solid quarter of underwriting profitability, with General Insurance underwriting income of $686 million, a calendar year combined ratio of 89.0% and an accident year combined ratio, as adjusted, of 88.1%. "Our strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment, where profitability and growth are increasingly dependent on line-specific dynamics. The breadth of our underwriting expertise and the diversity of our global portfolio remain important competitive advantages, allowing us to continue to pursue targeted growth in the segments where we expect to achieve the most attractive risk-adjusted returns. "We are building on our strong foundation as a market leader and best-in-class underwriting company. Our progress reflects the outstanding execution and commitment of our talented global team. We remain confident in our ability to meet our 2025 Investor Day financial objectives and see significant opportunity to leverage our global scale, strong brand and technical expertise to bring the full capabilities of AIG together to support our clients and stakeholders, while driving sustainable, profitable growth." * Refers to financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this press release under the heading Comment on Regulation G and Non-GAAP Financial Measures. FINANCIAL SUMMARY For the second quarter of 2026, Net income attributable to AIG common shareholders was $948 million, or $1.78 per diluted common share, compared to net income of $1.1 billion, or $1.98 per diluted common share, in the prior year quarter. The year-over-year decrease was primarily due to changes in the fair value of AIG's investment in Corebridge and equity securities, partially offset by higher underwriting income. AATI was $1.1 billion, or $2.00 per diluted common share, compared to $1.0 billion, or $1.81 per diluted common share in the prior year quarter, reflecting higher underwriting income, partially offset by lower Other Operations Net investment income. Total Net investment income for the second quarter of 2026 was $1.1 billion, compared to $1.5 billion in the prior year quarter, primarily due to changes in the fair value of AIG's investment in Corebridge and equity securities. Total Net investment income on an APTI basis was $908 million, compared to $955 million in the prior year quarter, due to lower Net investment income in Other Operations, while General Insurance Net investment income was flat year-over-year. AIG returned $904 million to shareholders in the second quarter of 2026 through $641 million of common stock repurchases, representing approximately 8 million shares, and $263 million of common stock dividends. At June 30, 2026, the total debt to total capital ratio was 18.1% and the total debt to total adjusted capital* ratio was 17.6%. During the quarter, AIG sold approximately 25 million shares of Corebridge common stock, representing our remaining interest in Corebridge, for aggregate proceeds of approximately $710 million. ROE and Core Operating ROE* were 9.4% and 11.1%, respectively, in the second quarter of 2026. Book value per share was $77.39 as of June 30, 2026, an increase of 4% from June 30, 2025. Adjusted tangible book value per share* was $72.18, an increase of 3% from June 30, 2025. On August 6, 2026, the AIG Board of Directors declared a quarterly cash dividend on AIG common stock of $0.50 per share. The dividend is payable on September 30, 2026 to shareholders of record at the close of business on September 16, 2026. GENERAL INSURANCE Second quarter NPW of $7.5 billion increased 9% from the prior year quarter both on a reported basis and a constant dollar basis. The growth was primarily driven by continued organic growth in select high-performing segments and contributions from AIG’s recent strategic transactions, partially offset by North America Property lines. Excluding North America Property lines, General Insurance NPW growth was 11%* in the second quarter. Underwriting income was $686 million, increasing 10% from the prior year quarter. Total catastrophe-related charges were $210 million, representing 3.4 loss ratio points, compared to $170 million, representing 2.9 loss ratio points, in the prior year quarter. Second quarter 2026 included $75 million of net losses related to the Middle East conflict. Second quarter 2026 included favorable prior year development (PYD), net of reinsurance and prior year premiums, of $145 million, compared to $112 million in the prior year quarter, primarily due to favorable development in U.S. Workers’ Compensation and U.S. Property and Special Risks, partially offset by slight strengthening in U.S. Excess Casualty. The combined ratio was 89.0%, improving 30 basis points from 89.3% in the prior year quarter, largely due to higher favorable PYD and an improved expense ratio, partially offset by higher catastrophe-related charges. The AYCR was 88.1%, improving 30 basis points from 88.4% in the prior year quarter, driven by a lower accident year loss ratio, as adjusted* (AYLR) as well as a lower expense ratio. General Insurance APTI was $1.5 billion, increasing 4% from the prior year quarter, driven by higher underwriting income. GENERAL INSURANCE - NORTH AMERICA COMMERCIAL Second quarter NPW of $3.1 billion increased 9% from the prior year quarter, primarily driven by Retail Casualty and Financial Lines, partially offset by declines in Lexington, driven by Property. The combined ratio was 84.0%, improving 190 basis points from 85.9% in the prior year quarter, driven by higher favorable PYD, lower catastrophe-related charges and lower general operating expense (GOE) ratio, partially offset by higher acquisition ratio and AYLR due to changes in business mix, in addition to rate pressure, particularly in Property. The AYCR was 86.7%, increasing 50 basis points from 86.2% in the prior year quarter, primarily driven by higher acquisition ratio and AYLR, partially offset by lower GOE ratio. GENERAL INSURANCE - INTERNATIONAL COMMERCIAL Second quarter NPW of $2.6 billion increased 11% from the prior year quarter, or 10% on a constant dollar basis, primarily driven by Property and Marine, partially offset by Financial Lines due to continued rate pressure. The combined ratio was 91.3%, increasing 540 basis points from 85.9% in the prior year quarter, driven by higher catastrophe-related charges, primarily due to losses related to the Middle East conflict, higher AYLR, reflecting rate pressure, and higher acquisition ratio, reflecting a combination of strong new business growth and changes in business mix. The AYCR was 87.3%, increasing 230 basis points from 85.0% in the prior year quarter, driven by higher AYLR and acquisition ratio. GENERAL INSURANCE - GLOBAL PERSONAL Second quarter NPW of $1.8 billion increased 7% from the prior year quarter, or 8% on a constant dollar basis, primarily driven by strong growth momentum in Accident & Health and continued organic growth in the High Net Worth business. The combined ratio was 92.9%, improving 560 basis points from 98.5% in the prior year quarter, primarily due to lower AYLR and acquisition ratio reflecting earn-in of improved High Net Worth business commission terms, lower GOE ratio and reduced catastrophe-related charges. The AYCR was 91.2%, improving 490 basis points from 96.1% in the prior year quarter. OTHER OPERATIONS Other Operations predominantly consists of Net investment income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate GOE, and Interest expense. Net Investment Income and Other was $39 million, compared to $92 million in the prior year quarter, which included $27 million of Corebridge dividends. In addition, the current quarter has lower Short-term Investment income. Corporate and other GOE improved $8 million from the prior year quarter. Interest expense increased $2 million from the prior year quarter. CONFERENCE CALL AIG will host a conference call tomorrow, Friday, August 7, 2026 at 8:30 a.m. ET to review these results. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of www.aig.com. A replay will be available after the call at the same location. # # # Additional supplementary financial data is available in the Investors section at www.aig.com. Cautionary Note on Forward-Looking Statements Certain statements in this press release and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‑looking statements are intended to provide management’s current expectations or plans for future operating and financial performance, based on assumptions currently believed to be valid and accurate. Forward-looking statements are often preceded by, followed by or include words such as "will," "believe," "anticipate," "expect," "expectations," "intend," "strive," "plan," "strategy," "prospects," "project," "anticipate," "should," "guidance," "outlook," "view," "target," "goal," "estimate" and other words of similar meaning in connection with a discussion of future operating or financial performance. These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation: the impact of adverse developments affecting economic conditions in the markets in which we operate, including financial market conditions, a U.S. federal government shutdown, macroeconomic trends, changes in trade policies, including tariffs, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, pandemics, and geopolitical events or conflicts; the occurrence of catastrophic events, both natural and man-made, which may be exacerbated by the effects of climate change; disruptions in the availability or accessibility of our or a third party’s information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches or infrastructure vulnerabilities; our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives; our ability to successfully complete strategic transactions, including to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof; the effects of changes in laws and regulations, including those relating to privacy, data protection, cybersecurity and AI, and the regulation of insurance, in the U.S. and other countries in which we operate; concentrations in our investment portfolios; changes in the valuation of our investments; our reliance on third-party investment managers; nonperformance or defaults by counterparties; our reliance on third parties to provide certain business and administrative services; our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures; changes in judgments or assumptions concerning insurance underwriting and insurance liabilities; concentrations of our insurance, reinsurance and other risk exposures; availability of adequate reinsurance or access to reinsurance on acceptable terms; changes to tax laws in the countries in which we operate; the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans; the effects of sanctions and the failure to comply with those sanctions; difficulty in marketing and distributing products through current and future distribution channels; actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters and to effectively execute on sustainability targets and standards; our ability to effectively implement restructuring initiatives and potential cost-savings opportunities; changes to sources of or access to liquidity; changes in accounting principles and financial reporting requirements or their applicability to us; the outcome of significant legal, regulatory or governmental proceedings; and such other factors discussed in: Forward-looking statements speak only as of the date of this press release, or in the case of any document incorporated by reference, the date of that document. AIG is not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in any forward-looking statements is disclosed from time to time in our filings with the SEC. # # # COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES Throughout this press release, including the financial highlights, AIG presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements AIG uses are "Non-GAAP financial measures" under SEC rules and regulations. GAAP is the acronym for generally accepted accounting principles in the United States. The non-GAAP financial measures AIG presents are listed below and may not be comparable to similarly-named measures reported by other companies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this press release or in the Second Quarter 2026 Financial Supplement available in the Investors section of AIG’s website, www.aig.com. Unless otherwise mentioned or unless the context indicates otherwise, we use the terms "AIG," "we," "us" and "our" to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries. AIG uses the following operating performance measures because AIG believes they enhance the understanding of the underlying profitability of operations and trends of AIG’s segments. AIG believes they also allow for more meaningful comparisons with AIG’s insurance competitors. When AIG uses these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis. Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income before income tax: changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares; net investment income on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets); net realized gains and losses on Fortitude Re funds withheld assets; loss (gain) on extinguishment of debt; all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income); income or loss from discontinued operations; net loss reserve discount benefit (charge); net results of businesses in run-off; non-operating pension expenses; net gain or loss on divestitures and other; non-operating litigation reserves and settlements; restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization; the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain; integration and transaction costs associated with acquiring or divesting businesses; losses from the impairment of goodwill; and non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles. Adjusted After-tax Income attributable to AIG common shareholders (adjusted after-tax income or AATI) is derived by excluding the tax effected APTI adjustments described above, noncontrolling interest on net realized gains (losses), other non-operating expenses and the following tax items from net income attributable to AIG: deferred income tax valuation allowance releases and charges; and changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance. See page 14 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income attributable to AIG common shareholders. Book value per share, excluding investments related cumulative unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common shareholders' equity) by total common shares outstanding. Book Value per share, excluding Investments AOCI, Goodwill, Value of business acquired (VOBA), Value of distribution channel acquired (VODA) and Other intangible assets (Adjusted tangible book value per share) is used to provide a useful measure of the realizable shareholder value on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions and Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Adjusted tangible book value per share is derived by dividing AIG adjusted common equity, excluding intangible assets, (AIG adjusted tangible common shareholders’ equity) by total common shares outstanding. Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG’s ownership interest in Corebridge (Core operating book value per share) is used to show the amount of our net worth on a per share basis after eliminating Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to net operating loss carryforwards (NOLs), corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG. Core operating book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (AIG core operating shareholders’ equity) by total common shares outstanding. Total debt to total adjusted capital ratio is used to show the AIG’s debt leverage adjusted for Investments AOCI and is derived by dividing total debt by total capital excluding Investments AOCI (Total adjusted capital). We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Return on equity – Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI. We believe this measure is useful to investors because it eliminates the fair value of investments which can fluctuate significantly from period to period due to changes in market conditions. Adjusted return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG adjusted common shareholders’ equity. Return on equity – Adjusted after-tax income excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (Core operating return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to NOLs, CAMTCs and FTCs that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG. We believe this metric provides investors with greater insight as to the underlying profitability of our property and casualty business. Core operating return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG core operating shareholders’ equity. Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures of underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amount of losses and loss adjustment expenses (which for General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses that would be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss. Our ratios are calculated using the relevant segment information calculated under GAAP, and thus may not be comparable to similar ratios calculated for regulatory reporting purposes. The underwriting environment varies across countries and products, as does the degree of litigation activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can have an effect on pricing and consequently on profitability as reflected in underwriting income and associated ratios. Accident year loss and Accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio, ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses (CATs) and related reinstatement premiums, net of reinsurance, and prior year development, net of prior year premiums, net of reinsurance, and the impact of reserve discounting. Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism and civil unrest that exceed the $10 million threshold. We believe that as adjusted ratios are meaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management’s control. We also exclude prior year development to provide transparency related to current accident year results. Underwriting ratios are computed net of reinsurance and as follows: Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE) Acquisition ratio = Total acquisition expenses ÷ NPE General operating expense ratio = General operating expenses ÷ NPE Expense ratio = Acquisition ratio + General operating expense ratio Combined ratio = Loss ratio + Expense ratio CATs and reinstatement premiums ratio = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes] – Loss ratio Accident year loss ratio, as adjusted (AYLR, ex-CAT) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] Accident year combined ratio, as adjusted (AYCR, ex-CAT) = AYLR ex-CAT + Expense ratio Prior year development, net of prior year premiums ratio = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs and reinstatement premiums ratio. Results from discontinued operations are excluded from all of these measures. # # # 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. American International Group, Inc.Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per common share data) Includes all Net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets. In the six months ended June 30, 2026, Net loss on divestitures and other primarily relates to a change in estimate for earn-out considerations associated with the dispositions of Validus Reinsurance, Ltd. and global personal travel and assistance business. In the third quarter of 2025, AIG began excluding the net results of run-off businesses previously reported in General Insurance from Adjusted pre-tax income. In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806269644/en/ Contacts Quentin McMillan (Investors): [email protected] Andrew Johnson (Media): [email protected]
Investor releaseQuarter not tagged2026-08-06American International Group (AIG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Zacks
American International Group (AIG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
American International Group (AIG) reported $7.11 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.9%. EPS of $2.00 for the same period compares to $1.81 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $7.27 billion, representing a surprise of -2.24%. The company delivered an EPS surprise of +5.82%, with the consensus EPS estimate being $1.89. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how American International Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: General Insurance - North America Commercial - Loss ratio: 60.7% versus the three-analyst average estimate of 65%. General Insurance - International Commercial - Combined ratio: 91.3% compared to the 87.6% average estimate based on three analysts. General Insurance - North America Commercial - Combined ratio: 84% versus 88.1% estimated by three analysts on average. General Insurance - International Commercial - Expense ratio: 32.1% versus 30.3% estimated by three analysts on average. General Insurance - Loss ratio: 58.2% versus the three-analyst average estimate of 59.7%. Revenues- Total net investment income: $1.13 billion versus $981.31 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -23.1% change. General Insurance- North America Commercial- Net premiums earned: $2.32 billion versus the three-analyst average estimate of $2.38 billion. The reported number represents a year-over-year change of +9%. General Insurance- International Commercial- Net premiums earned: $2.27 billion versus $2.32 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7% change. General Insurance- Global Personal- Net premiums earned: $1.6 billion versus $1.64 billion estimated by three analysts on a…Read full documentShow less
American International Group (AIG) reported $7.11 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.9%. EPS of $2.00 for the same period compares to $1.81 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $7.27 billion, representing a surprise of -2.24%. The company delivered an EPS surprise of +5.82%, with the consensus EPS estimate being $1.89. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how American International Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: General Insurance - North America Commercial - Loss ratio: 60.7% versus the three-analyst average estimate of 65%. General Insurance - International Commercial - Combined ratio: 91.3% compared to the 87.6% average estimate based on three analysts. General Insurance - North America Commercial - Combined ratio: 84% versus 88.1% estimated by three analysts on average. General Insurance - International Commercial - Expense ratio: 32.1% versus 30.3% estimated by three analysts on average. General Insurance - Loss ratio: 58.2% versus the three-analyst average estimate of 59.7%. Revenues- Total net investment income: $1.13 billion versus $981.31 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -23.1% change. General Insurance- North America Commercial- Net premiums earned: $2.32 billion versus the three-analyst average estimate of $2.38 billion. The reported number represents a year-over-year change of +9%. General Insurance- International Commercial- Net premiums earned: $2.27 billion versus $2.32 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7% change. General Insurance- Global Personal- Net premiums earned: $1.6 billion versus $1.64 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.3% change. General Insurance- Net investment income: $871 million compared to the $884.51 million average estimate based on three analysts. The reported number represents a change of 0% year over year. Other Operations- Net investment income and other: $39 million versus $42.87 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -57.6% change. General Insurance- Net premiums earned: $6.2 billion compared to the $6.33 billion average estimate based on three analysts. The reported number represents a change of +5.4% year over year. View all Key Company Metrics for American International Group here>>> Shares of American International Group have returned +0.6% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-06American International Group Q2 Adjusted Earnings Rise, Net Investment Income Falls
MT Newswires
American International Group Q2 Adjusted Earnings Rise, Net Investment Income Falls
American International Group (AIG) reported Thursday Q2 adjusted earnings of $2.00 per diluted share
Investor releaseQuarter not tagged2026-08-06American International Group (AIG) Could Be 9% Undervalued As Earnings Uncertainty Builds
Simply Wall St.
American International Group (AIG) Could Be 9% Undervalued As Earnings Uncertainty Builds
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. American International Group (AIG) is back in focus as investors look ahead to its second quarter 2026 earnings report, with recent share moves reflecting mixed expectations around growth and profitability. See our latest analysis for American International Group. Recent trading shows mixed momentum for American International Group, with a 1 day share price return of 1.01% and a 90 day share price return of 4.83%, while the year to date share price return has declined 4.92%. Over longer horizons, total shareholder return of 3.76% over one year and 66.00% over five years indicates that investors who stayed invested through past swings have seen material value. The current consolidation around US$80.12 appears closely tied to shifting expectations around premium growth and net investment income ahead of the second quarter 2026 results. If AIG's upcoming earnings have you reassessing your portfolio mix, this can be a good moment to broaden your research and check out 22 top founder-led companies After a solid multi year run and a recent pullback from year to date highs, American International Group now sits near US$80 with earnings risk tied to investment income. Does that setup still reward new buyers more than sellers? American International Group's most followed narrative sets a fair value of $88.45 against the recent $80.12 share price, framing the current debate around its earnings mix and underwriting progress. Read the complete narrative. Curious how this efficiency story backs up an $88.45 fair value tag? The narrative leans heavily on measured revenue growth, higher margins, and a different future earnings mix. It also bakes in a lower valuation multiple than the sector uses today. The full set of assumptions ties those moving parts together for American International Group. Result: Fair Value of $88.45 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this American International Group narrative could be challenged if climate related catastrophe losses hit underwriting results, or if intense competition compresses margins faster than expected. Find out about the key risks to this American International Group narrative. The first narrative framed American Inter…Read full documentShow less
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. American International Group (AIG) is back in focus as investors look ahead to its second quarter 2026 earnings report, with recent share moves reflecting mixed expectations around growth and profitability. See our latest analysis for American International Group. Recent trading shows mixed momentum for American International Group, with a 1 day share price return of 1.01% and a 90 day share price return of 4.83%, while the year to date share price return has declined 4.92%. Over longer horizons, total shareholder return of 3.76% over one year and 66.00% over five years indicates that investors who stayed invested through past swings have seen material value. The current consolidation around US$80.12 appears closely tied to shifting expectations around premium growth and net investment income ahead of the second quarter 2026 results. If AIG's upcoming earnings have you reassessing your portfolio mix, this can be a good moment to broaden your research and check out 22 top founder-led companies After a solid multi year run and a recent pullback from year to date highs, American International Group now sits near US$80 with earnings risk tied to investment income. Does that setup still reward new buyers more than sellers? American International Group's most followed narrative sets a fair value of $88.45 against the recent $80.12 share price, framing the current debate around its earnings mix and underwriting progress. Read the complete narrative. Curious how this efficiency story backs up an $88.45 fair value tag? The narrative leans heavily on measured revenue growth, higher margins, and a different future earnings mix. It also bakes in a lower valuation multiple than the sector uses today. The full set of assumptions ties those moving parts together for American International Group. Result: Fair Value of $88.45 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this American International Group narrative could be challenged if climate related catastrophe losses hit underwriting results, or if intense competition compresses margins faster than expected. Find out about the key risks to this American International Group narrative. The first narrative framed American International Group as 9.4% undervalued at $88.45 using forward earnings and assumptions about margins and growth. A second lens looks at today’s P/E of 13.4x versus the US Insurance industry at 11.9x and peer average of 10.4x. The fair ratio sits close by at 13.6x. That mix points to a stock that screens richer than sector and peer groups, yet close to the fair ratio the market could drift toward, leaving you to decide whether that gap feels like risk or room for rerating. To see how this price based view lines up against the cash flow story, it helps to review how our model treats future cash generation and discount rates for American International Group, starting with the See what the numbers say about this price — find out in our valuation breakdown. Feeling encouraged by the tone around American International Group or still unsure about the risk reward mix as earnings approach? Act while sentiment is taking shape and review the 3 key rewards Do not stop with American International Group. The best opportunities often show up where fewer people are looking, so widen your research before the next move. Target reliable income streams by reviewing companies featured in 8 dividend fortresses and see which payouts might help steady your portfolio. Hunt for quality at a reasonable price by scanning the opportunities in 51 high quality undervalued stocks that combine solid fundamentals with appealing valuations. Strengthen your downside protection by focusing on companies highlighted in 79 resilient stocks with low risk scores that aim to keep risk scores in check while still offering potential upside. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Investor releaseQuarter not tagged2026-08-06American International Group (AIG) Q2 Earnings Top Estimates
Zacks
American International Group (AIG) Q2 Earnings Top Estimates
American International Group (AIG) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.82%. A quarter ago, it was expected that this insurer would post earnings of $1.9 per share when it actually produced earnings of $2.11, delivering a surprise of +11.05%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. American International Group, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $7.11 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.24%. This compares to year-ago revenues of $6.84 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American International Group shares have lost about 6.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While American International Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American International Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near fu…Read full documentShow less
American International Group (AIG) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.82%. A quarter ago, it was expected that this insurer would post earnings of $1.9 per share when it actually produced earnings of $2.11, delivering a surprise of +11.05%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. American International Group, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $7.11 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.24%. This compares to year-ago revenues of $6.84 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American International Group shares have lost about 6.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While American International Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American International Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.84 on $7.44 billion in revenues for the coming quarter and $7.97 on $29.09 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, Antalpha Platform Holding Company (ANTA), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Antalpha Platform Holding Company's revenues are expected to be $16.2 million, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Antalpha Platform Holding Company (ANTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-05Will These 3 Insurance Stocks Insure a Q2 Earnings Beat?
Zacks
Will These 3 Insurance Stocks Insure a Q2 Earnings Beat?
As second-quarter 2026 earnings continue to roll in, the insurance sector is emerging as one of the early bright spots. Industry leaders Marsh, AON and Hartford have already cleared the bar, reporting results that topped expectations and offering investors a constructive read on the industry's health. Attention now turns to the next batch of earnings from Aflac Incorporated AFL, American International Group, Inc. AIG and Octave Specialty Group, Inc. OSG — all scheduled to report tomorrow. Before diving into company-specific expectations, it’s important to understand the broader industry trends likely to influence these outcomes. The insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 22.9% from the year-ago quarter. Revenues are expected to grow 12%, as indicated by our latest Earnings Preview. Stable demand across life, health and specialty insurance products is expected to have supported premium growth in the second quarter. Strong policy retention, new business generation and product diversification likely helped insurers offset a competitive pricing environment. In general, the insurers are expected to have witnessed net investment income growth in the second quarter as higher-yielding assets continue replacing lower-yielding securities. Improving underwriting discipline is likely to have remained a key earnings driver during the quarter. Per Marsh Global Insurance Market Index, global commercial insurance rates declined 6% in the second quarter of 2026, marking the eighth consecutive quarter of reductions and extending favorable conditions for buyers across most regions and major product lines. Continued focus on cost controls, automation and digital transformation is expected to have aided operating margins. Insurers investing in technology and streamlining operations were likely better positioned to manage inflationary cost pressures and improve profitability. Per Gallagher Re’s Natural Catastrophe and Climate Report, economic losses during the first half of 2026 were the lowest since 2020, while insured losses were also the lowest since 2019. The report adds that the second quarter marked the fifth straight quarter without a major catastrophe producing more than $10 billion in insured losses, underscoring a relatively benign loss envir…Read full documentShow less
As second-quarter 2026 earnings continue to roll in, the insurance sector is emerging as one of the early bright spots. Industry leaders Marsh, AON and Hartford have already cleared the bar, reporting results that topped expectations and offering investors a constructive read on the industry's health. Attention now turns to the next batch of earnings from Aflac Incorporated AFL, American International Group, Inc. AIG and Octave Specialty Group, Inc. OSG — all scheduled to report tomorrow. Before diving into company-specific expectations, it’s important to understand the broader industry trends likely to influence these outcomes. The insurance space belongs to the Finance sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), whose overall earnings are projected to jump 22.9% from the year-ago quarter. Revenues are expected to grow 12%, as indicated by our latest Earnings Preview. Stable demand across life, health and specialty insurance products is expected to have supported premium growth in the second quarter. Strong policy retention, new business generation and product diversification likely helped insurers offset a competitive pricing environment. In general, the insurers are expected to have witnessed net investment income growth in the second quarter as higher-yielding assets continue replacing lower-yielding securities. Improving underwriting discipline is likely to have remained a key earnings driver during the quarter. Per Marsh Global Insurance Market Index, global commercial insurance rates declined 6% in the second quarter of 2026, marking the eighth consecutive quarter of reductions and extending favorable conditions for buyers across most regions and major product lines. Continued focus on cost controls, automation and digital transformation is expected to have aided operating margins. Insurers investing in technology and streamlining operations were likely better positioned to manage inflationary cost pressures and improve profitability. Per Gallagher Re’s Natural Catastrophe and Climate Report, economic losses during the first half of 2026 were the lowest since 2020, while insured losses were also the lowest since 2019. The report adds that the second quarter marked the fifth straight quarter without a major catastrophe producing more than $10 billion in insured losses, underscoring a relatively benign loss environment for insurers. Against this backdrop, investors will be watching whether Aflac, American International and Octave Specialty can build on the industry's strong start to the earnings season. Our proprietary model clearly indicates that a company needs to have the right combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Now let’s find out how the following three companies are placed ahead of their June-quarter earnings release tomorrow. Aflac: Aflac’s second-quarter results are likely to benefit from continued growth in net earned premiums in the Aflac U.S. unit, driven by higher sales. The metric indicates a 2.2% year-over-year increase. The consensus mark for adjusted revenues in the Aflac U.S. segment signals 2.2% growth from the year-ago level. The total benefit-to-premium ratio for Aflac Japan stands at 61.7, down from 66.5 in the year-ago period. However, the upside is expected to be partly offset by reduced adjusted revenues in the Aflac Japan segment and lower net investment income. The consensus mark indicates a 15.1% decline in net investment income in the second quarter. (Read more: Can Better Japan Profitability Support Aflac's Q2 Earnings Beat?) The Zacks Consensus Estimate for the second-quarter earnings and top line is pegged at $1.77 per share and $4.2 billion, respectively, indicating an earnings decline of 0.6% and a revenue decrease of 7.7% from the corresponding year-ago quarter’s readings. AFL’s bottom line beat the Zacks Consensus Estimate in two of the last four quarters and missed twice, the average surprise being 7.9%. Aflac Incorporated price-eps-surprise | Aflac Incorporated Quote Our proven model predicts a likely earnings beat for Aflac this time around, as the stock has an Earnings ESP of +0.90% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. American International: AIG’s second-quarter revenues are expected to have been supported by 7.7% year-over-year growth in net premiums earned in the General Insurance business. The Zacks Consensus Estimate for the General Insurance underwriting income indicates a 0.4% year-over-year increase. The Zacks Consensus Estimate for the General Insurance adjusted pre-tax income indicates a rise of 0.6% year over year. However, the estimate for net investment income predicts a 33.1% year-over-year decline. The consensus mark for loss ratio is pegged at 59.69%, up from the year-ago level of 58.3%. The Zacks Consensus Estimate for the second-quarter earnings and top line is pegged at $1.89 per share and $7.3 billion, respectively, indicating an earnings growth of 4.4% and a revenue increase of 6.3% from the corresponding year-ago quarter’s readings. AIG’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 15.1%. American International Group, Inc. price-eps-surprise | American International Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for AIG this time around. This is because the stock currently has an Earnings ESP of -1.12% and a Zacks Rank #3. Octave Specialty: OSG’s revenues in the to-be-reported quarter are likely to have benefited from higher net premiums earned, commissions, and servicing and other fees. Net premiums earned likely increased on the growth of new and existing programs, including programs carrying higher retention ratios. Octave Specialty’s continued emphasis on expanding products and geographic reach, increasing cross-selling, strengthening carrier relationships and enhancing its digital data infrastructure likely supported second-quarter performance. However, net investment income likely declined because of lower yields on corporate short-term investments. The Zacks Consensus Estimate for the second-quarter earnings stands at a loss of 1 cent per share, indicating a year-over-year improvement of 95.5%. OSG’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 464.4%. The consensus mark for revenues is pegged at $81 million, signaling a 47.4% increase. Octave Specialty Group, Inc. price-eps-surprise | Octave Specialty Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for Octave Specialty this time around, as the stock has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report Octave Specialty Group, Inc. (OSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-05Will Investment Income Headwinds Weigh on AIG's Q2 Results?
Zacks
Will Investment Income Headwinds Weigh on AIG's Q2 Results?
Insurance provider American International Group, Inc. AIG is set to report its second-quarter 2026 results on Aug. 6, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.89 per shareon revenues of $7.27 billion. The second-quarter earnings estimate declined by 4 cents over the past 60 days. Yet, the bottom-line projection indicates year-over-year growth of 4.4%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 6.3%. Image Source: Zacks Investment Research For 2026, the Zacks Consensus Estimate for American International’s revenues is pegged at $29.09 billion, implying a rise of 5.9% year over year. Also, the consensus mark for 2026 EPS is pegged at $7.97, implying a 12.4% year-over-year growth. American International beat earnings estimates in each of the past four quarters, with the average surprise being 15.1%. This is depicted in the figure below. American International Group, Inc. price-eps-surprise | American International Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. AIG has an Earnings ESP of -1.12% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for second-quarter General Insurance net premiums earned indicates 7.7% year-over-year growth. Also, North America and International units are expected to have witnessed year-over-year increases. The consensus estimate for adjusted pre-tax income from General Insurance indicates around a 0.6% increase from the year-ago quarter. But the same from the Other Operations indicates a higher level of loss in the second quarter of 2025 from the year-ago period. The Zacks Consensus Estimate for second-quarter combined ratio from the General Insurance segment is pegged at 90.1%, deteriorating from the year-ago level of 89.3%. Also, the combined ratio from its international commercial operations indicates a deterioration to 87.6% from 85.9% a year ago. The consensus mark for net investment income sugg…Read full documentShow less
Insurance provider American International Group, Inc. AIG is set to report its second-quarter 2026 results on Aug. 6, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.89 per shareon revenues of $7.27 billion. The second-quarter earnings estimate declined by 4 cents over the past 60 days. Yet, the bottom-line projection indicates year-over-year growth of 4.4%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 6.3%. Image Source: Zacks Investment Research For 2026, the Zacks Consensus Estimate for American International’s revenues is pegged at $29.09 billion, implying a rise of 5.9% year over year. Also, the consensus mark for 2026 EPS is pegged at $7.97, implying a 12.4% year-over-year growth. American International beat earnings estimates in each of the past four quarters, with the average surprise being 15.1%. This is depicted in the figure below. American International Group, Inc. price-eps-surprise | American International Group, Inc. Quote However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. AIG has an Earnings ESP of -1.12% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for second-quarter General Insurance net premiums earned indicates 7.7% year-over-year growth. Also, North America and International units are expected to have witnessed year-over-year increases. The consensus estimate for adjusted pre-tax income from General Insurance indicates around a 0.6% increase from the year-ago quarter. But the same from the Other Operations indicates a higher level of loss in the second quarter of 2025 from the year-ago period. The Zacks Consensus Estimate for second-quarter combined ratio from the General Insurance segment is pegged at 90.1%, deteriorating from the year-ago level of 89.3%. Also, the combined ratio from its international commercial operations indicates a deterioration to 87.6% from 85.9% a year ago. The consensus mark for net investment income suggests a 32.1% decline from the year-ago period, likely due to changes in the fair value of its investments in Corebridge and equity securities. These are likely to have partially offset the positives in the second quarter, making an earnings beat uncertain. Several insurance companies, including Marsh & McLennan Companies, Inc. MRSH, Lincoln National Corporation LNC and RenaissanceRe Holdings Ltd. RNR, have already reported their financial results for the June quarter of 2026. Here’s how they performed: Marsh reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year.Its strong quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by Marsh’s elevated operating expenses, primarily due to increased compensation and benefits. Lincoln National reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%, but declined 5.1% year over year. The quarterly earnings were supported by higher net investment income and lower expenses. Improved profitability in the Life Insurance and Retirement Plan Services segments also contributed to the upside. Nevertheless, these gains were partly offset by lower sales in LNC’s Annuities and Group Protection segments. RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%. The bottom line also improved 5.1% year over year. The quarterly earnings benefited from lower expenses, higher net investment income and an improved total combined ratio. However, the upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Lincoln National Corporation (LNC) : Free Stock Analysis Report RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report Marsh (MRSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research