AIG Reports Strong Growth in General Insurance for Q1 2026
AIG's General Insurance segment significantly increased its underwriting income to $774 million in the first quarter of 2026, primarily due to reduced catastrophe losses. During the same period, gross premiums written (GPW) climbed by 11% to exceed $10 billion, while net premiums written (NPW) soared by 24% year-over-year to reach $6 billion. This growth is attributed to strategic transactions, enhancements in the reinsurance program, and organic expansion in key areas.
In North America Commercial, NPW grew by 37%, while International Commercial and Global Personal premiums rose by 21% and 17%, respectively. The company reported catastrophe-related expenses of $180 million during the quarter, markedly down from $525 million in the previous year. AIG also saw a favorable adjustment of $132 million related to prior years, with improvements in US Property and US Financial Lines.
The combined ratio in the General Insurance business improved by 850 basis points to 87.3% for the first quarter. The accident year combined ratio reached 86.6%, driven by reduced expenses. Net investment income in this segment rose to $864 million, marking a 17% increase from the previous year.
Overall, adjusted pre-tax income in the General Insurance division spiked by 67% year-over-year to over $1.6 billion, reflecting stronger underwriting results and an uptick in investment income. Conversely, AIG's Other Operations reported a widened loss of $125 million, compared to a $66 million loss in the prior year.
Group-wide, AIG recognized a net income of $763 million attributable to common shareholders, up from $698 million a year ago, despite a decline in net investment income to $712 million from over $1.1 billion. The company's adjusted pre-tax income increased to more than $1.5 billion, up from $909 million the previous year. The return on equity stood at 7.5%, an improvement from last year's 6.7%.
Peter Zaffino, AIG’s Chairman and CEO, stated, “AIG entered 2026 with significant momentum and delivered outstanding first quarter results, highlighting the strength of our underwriting capabilities and sustained earnings momentum across our businesses.” Adjusted after-tax income per diluted share was $2.11 for the quarter, marking an 80% rise year-over-year, with a Core Operating ROE of 12.2%.
Zaffino emphasized the performance across all segments, buoyed by strategic initiatives and favorable January 1 reinsurance renewals, alongside profitable organic growth. Moreover, AIG executed a disciplined capital management strategy, returning $760 million to shareholders in the quarter, which included $519 million in share repurchases and $241 million in dividends. The AIG Board approved an 11% increase in the quarterly dividend to $0.50 per share, effective from the second quarter of 2026.
Zaffino expressed confidence in navigating a complex global risk environment while continuing to pursue disciplined, profitable growth in line with financial objectives set at their 2025 Investor Day, attributing the success to the dedication and capability of AIG's global workforce.