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.

AIG’s Q2 Operational Update

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.

Segmental Performances of AIG

General Insurance – North America Commercial

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.

General Insurance – International Commercial

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.

General Insurance – Global Personal

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.

Other Operations

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.

Financial Position of AIG (As of June 30, 2026)

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’s Capital Deployment Update

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’s Zacks Rank

AIG currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?

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.

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