AIG premiums rise 7% as underwriting income falls

AIG reported General Insurance net premiums written of $6.65 billion for the third quarter of 2026, up 7% year over year, or 8% on a constant currency basis. Underwriting income fell 29% to $564 million as catastrophe losses increased and favorable reserve development declined.

The combined ratio rose to 91.3% from 86.8%. Catastrophe-related charges totaled $283 million, primarily from severe convective storms in North America, compared with $100 million a year earlier. Favorable prior-year reserve development was $91 million, down from $180 million.

The adjusted accident-year combined ratio, which excludes catastrophe losses and prior-year reserve development, was nearly unchanged at 88.4%, compared with 88.3%.

North America Commercial net premiums written increased 2% to $2.48 billion, driven by retail casualty and financial lines, partly offset by lower production in certain property lines. Underwriting income fell 57% to $167 million, and the combined ratio rose to 92.9% from 82.6%.

International Commercial premiums increased 13% to $2.39 billion. Its combined ratio rose to 88.3% from 84.9%, while underwriting income declined 14% to $283 million.

Global Personal premiums grew 6% to $1.78 billion, or 9% on a constant currency basis, supported by high-net-worth insurance and accident and health. Underwriting income increased 44% to $114 million, and the combined ratio improved to 93.2% from 95.2%.

Overall, AIG’s net income attributable to common shareholders rose to $844 million, or $1.60 per diluted share, from $519 million, or $0.93 per share. Adjusted after-tax income declined to $1.09 billion, or $2.06 per share, from $1.23 billion, or $2.20 per share.

AIG returned $787 million to shareholders through $527 million in share repurchases and $260 million in dividends.