Global insurer AIG’s general insurance (GI) business more than tripled underwriting revenue to $774 million in the first quarter of 2026 due to lower catastrophe losses, while gross written premiums (GPW) increased 11% year-on-year to more than $10 billion.
AIG explained that as gross premiums grew, net premiums written (NPW) increased 24% year over year to $6 billion, primarily due to the impact of strategic transactions, changes in reinsurance programs and organic growth in targeted areas. North American commercial net premiums increased by 37% year-on-year, international commercial premiums increased by 21%, and global personal premiums increased by 17% year-on-year.
Catastrophe-related expenses for the period totaled $180 million, down from $525 million a year earlier.
In addition, AIG benefited from good development last year (excluding reinsurance and prior year premiums), driven by good development in US real estate and US financial businesses, reaching US$132 million in the first quarter of 2026, an increase from US$64 million in the previous year.
In 1Q26, GI’s combined ratio increased 850 basis points to 87.3%, while the accident annual combined ratio improved from 87.8% to 86.6%, driven by lower expense ratios.
In the first quarter of 2026, GI’s net investment income totaled $864 million, an increase of 17% from $736 million in the previous year.
The segment’s adjusted pretax income increased 67% year over year in the first quarter of 2026 to more than $1.6 billion, driven by higher underwriting and investment income compared to the prior year.
AIG’s other businesses, which mainly include net investment income from AIG’s parent company’s liquid investment portfolio, Corebridge dividend income, corporate GOE and interest expense, recorded a loss of US$125 million in the first quarter of 26, which was larger than the US$66 million loss in the previous year.
Group-wide, AIG’s net profit attributable to common shareholders in the first quarter of 2026 was US$763 million, up from US$698 million last year, while net investment income fell to US$712 million from more than US$1.1 billion. Adjusted pre-tax income increased to more than $1.5 billion in 1Q26, compared to $909 million in the same period last year. Return on equity in 1Q26 was 7.5%, up from 6.7% last year.
Peter Zaffino, AIG Chairman and Chief Executive Officer, commented: “AIG enters 2026 with strong momentum and delivered excellent first-quarter results, highlighting the strength of our underwriting capabilities and continued profitability momentum across the business. Adjusted diluted earnings per share for the quarter were $2.11, up 80% year over year, and core operating ROE was 12.2%.
“We delivered impressive revenue growth, with net written premiums increasing 24% year over year on a reported basis and 18% on a constant dollar basis. On a constant dollar basis, North America Commercial grew 36% year over year, International Commercial grew 12%, and Global Personal grew 11%. All three segments performed exceptionally well, supported by our recent strategic transactions, favorable January 1 reinsurance renewal results and profitable organic growth.
“Underwriting revenue in the first quarter more than tripled year over year to $774 million. The calendar year combined ratio was 87.3%, an improvement of 850 basis points year over year. The adjusted accident annual combined ratio was 86.6%, an improvement of 120 basis points year over year.
“We continue to execute a disciplined capital management strategy to maintain a strong balance sheet and return capital to shareholders. During the quarter, we returned $760 million of capital to shareholders, including $519 million in share repurchases and $241 million in dividends.
“On April 30, AIG’s Board of Directors approved an 11% increase in the quarterly dividend to $0.50 per share beginning in the second quarter of 2026, marking the fourth consecutive year of double-digit percentage increases and reflecting confidence in AIG’s long-term prospects.
“Looking ahead, we are confident that we can navigate the increasingly complex global risk landscape while continuing to deliver disciplined profitable growth, and that we will continue to meet or exceed the financial targets we established at our March 2025 Investor Day. Our ability to continue to deliver strong financial results while positioning AIG for long-term success is a direct result of our incredible colleagues around the world and their extraordinary hard work, commitment and ability to execute.”
