American International Group, Inc. (AIG), the global insurance-company/" style="color:#c0392b;font-weight:700;text-decoration:underline;" class="hta-topic-link">insurance company, delivered a 63% year-on-year rise in net income to $844 million for the third quarter of 2026, as the firm’s General Insurance (GI) business generated net premiums written (NPW) of $6.7 billion, an increase of 7% on the prior year period.
After the release of a strong set of results for the third quarter of the year, AIG’s President and Chief Executive Officer, Eric Andersen, said the company continues to make “excellent progress” towards achieving its 2025 Investor Day financial objectives.
Group-wide, adjusted pre-tax income decreased slightly year-on-year to $1.5 billion from $1.6 billion, driven by a 9% decrease in GI income to $1.6 billion, and a steeper loss in other operations of $141 million, compared with $112 million a year earlier.
Net investment income increased year-on-year by 42% to $1.1 billion for Q3’26, and rose to $1.1 billion from $1 billion on an adjusted pre-tax income basis, driven by higher GI net investment income as a result of higher income available for sale fixed maturity securities.
AIG’s adjusted after-tax income for the quarter declined to $1.1 billion from $1.2 billion, which the firm attributes to lower underwriting income and lower Other Operations net investment income.
GI underwriting income decreased 29% year-on-year to $564 million in Q3’26, as the combined ratio deteriorated by 4.5 percentage points to 91.3%, with a higher loss ratio of 60.7% and a slightly lower expense ratio of 30.6%. AIG highlights higher earned premiums, strong accident year underwriting results and modest catastrophe losses in the quarter.
The GI business experienced total catastrophe-related charges of $283 million in the quarter, equating to 4.4 loss ratio points, and driven by severe convective storms in North America. In contrast, Q3’25 saw low catastrophe losses of just $100 million.
GI also benefited from favorable prior year development, net of reinsurance and prior year premiums, of $91 million in the third quarter of 2026.
In terms of the top-line, AIG’s GI business recorded a 6% rise in gross written premiums to $9.2 billion, and a 7% rise in NPW to $6.7 billion. The carrier notes growth across Global Commercial and Global Personal Insurance businesses, and says that excluding North America Property lines, GI NPW increased 10% year-on-year.
GI net investment income was $1 billion in the third quarter, up 9% on the prior year, driven by the core fixed income portfolio.
“AIG delivered strong profitability and premium growth in the third quarter rounding out an outstanding first nine months of 2026,” said President and CEO, Andersen.
“In the third quarter, Adjusted after-tax income was $1.1 billion, or $2.06 per diluted share. Core Operating ROE was 11.1% for the quarter and 11.4% for the first nine months of 2026 and adjusted book value per share grew 5% year-over-year.
“Growth was broad-based with net premiums written growing 8% year-over-year, or 10%* excluding North America Property, both on a constant dollar basis, driven by our Global Commercial and Global Personal Insurance businesses. Despite a more challenging market environment, we maintained strong underwriting performance, generating underwriting income of $564 million, with a calendar year combined ratio of 91.3% and an accident year combined ratio, ex-CAT, of 88.4%.
“Our results through the first three quarters of 2026 reinforce our momentum. Compared to the same nine-month period last year, we delivered double-digit top-line growth in premiums, exceeded $2 billion in underwriting income, and improved the combined ratio 140 basis points to 89.2% and the accident year combined ratio, ex-CAT, 50 basis points to 87.7%.
“Overall, this exceptional performance underscores the benefits of our diverse, global portfolio, the consistent execution of our strategy, and our focus on deepening relationships with our clients and partners.
“Our success is a direct reflection of our people. AIG’s depth of talent across every region and line of business is one of our greatest strengths. Because of our colleagues’ hard work and dedication, we are growing profitably and well positioned to build on our strong foundation,” he added.
