Peter Zaffino, chairman and chief executive officer (CEO) of global insurance company AIG, said today that he was “very pleased” with the results of the company’s January 1, 2026 reinsurance renewals, as the environment was very favorable for buyers as the supply of reinsurance capacity increased.
As is typical on AIG’s fourth-quarter earnings call, CEO Zaffino provided some details about the company’s 1.1 update experience. He explained that healthy loss activity in the second half of the year led to an increase in reinsurance capacity, ultimately creating a favorable renewal environment for insurers such as AIG.
“As a general statement, while reinsurers are prepared to compromise on pricing, they remain 1.1 disciplined at the point of attachment. Our unwavering long-term belief in the point of attachment has proven to be beneficial for AIG. We have always said that once you give it up, you can’t take it back, and that remains true today,” Zaffino said.
Zaffino said that in 2026, AIG “achieved better terms and favorable pricing,” adding that the company “benefits significantly from the current environment with more total capacity in the market, our continued purchases, an attractive portfolio and the special relationships we have developed with our reinsurance partners.”
AIG’s property catastrophe reinsurance program continued to improve at renewal in January, with the insurer’s weighted average risk-adjusted rate falling by more than 15%, which Zaffino said could lead to significant year-over-year savings.
This is consistent with brokerage reports showing global real estate catastrophe rates falling by an average of 10% to 20% when renewals occur in January.
“The payback periods for our property catastrophic insurance add-ons are generally low across our regions and operations. Our emissions limits are comparable across all regions globally,” Zaffino said.
Also on 1.1, 2026, AIG was able to consolidate the high-net-worth allocation into the 500 XS 500 tier of its North American occurrence tier. In addition, Zaffino revealed that the company has achieved further efficiencies in overall protection, including a single maximum contribution loss, rather than one separately for the North American Commercial and Global Personal portfolios.
On the casualty side, Zaffino highlighted the quality differentiation in the reinsurance market, resulting in AIG’s treaties being updated with special pricing and terms and conditions.
“Our quota share in North America remains at a very attractive transfer commission of around 30. Our excess loss riders and limits remain the same as the expiring treaty. However, our underlying premium rates have declined year over year. Finally, we were able to add the Everest portfolio to the treaty at AIG pricing and terms without increasing notional costs,” he said.
“Overall. I am very pleased with our 1.1 renewals. Our approach to reinsurance remains an important part of our strategy to minimize portfolio volatility and position AIG well into 2026,” Zaffino added.