Global insurer AIG has reported underwriting income growth of 10% year over year for its General Insurance (GI) business to USD 686 million for the second quarter of 2026, compared to USD 626 million in Q2’25.
In a strong quarter for the insurer, the combined ratio (CoR) for GI improved slightly to 89%, compared to 89.3% in Q2’25, largely due to higher favorable prior year development (PYD), and an improved expense ratio, partially offset by higher catastrophe-related charges.
For the quarter, PYD, net of reinsurance and prior year premiums, hit USD 145 million, compared to USD 112 million in the prior year quarter, primarily due to favourable development in the US Workers’ Compensation and US property and special risks, partially offset by slight strengthening in US excess casualty, explains the firm.
The CoR included elevated total catastrophe-related charges of USD 210 million, representing 3.4 loss ratio points, compared to USD 170 million, representing 2.9 loss ratio points, in Q2’25. Additionally, Q2’26 included USD 75 million of net losses related to the Middle East conflict.
For this quarter, GI’s gross written premiums rose by 9% to USD 10.9 billion, compared to USD 10.1 billion in Q2’25. Meanwhile, the segment’s net premiums written for Q2’26 were USD 7.5 billion, also increasing 9% year-over-year on both a reported basis and a constant dollar basis, driven by growth across all three business segments. AIG explained that this growth was primarily driven by continued organic growth in certain segments and contributions from its recent strategic transactions, partially offset by North America Property lines.
The GI segment’s adjusted after-tax income (APTI) rose by 4% to USD 1.5 billion, driven by higher underwriting income.
AIG’s other operations predominantly consist of net investment income from the AIG Parent liquidity portfolio, Corebridge dividend income, corporate GOE, and interest expense.
Overall, for Q2’26, net income dropped to USD 948 million, compared to USD 1.14 billion in Q2’25. 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.
Net investment income for the quarter came down to USD 908 million from USD 955 million in Q2’25, for the aforementioned reasons.
Eric Andersen, President & Chief Executive Officer, AIG, commented, “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. 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%.”
He continued, “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.”
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