AIG Reports 356% Growth in Underwriting Income for Q2 2026
AIG achieved a remarkable upswing in its Global Personal insurance sector during the second quarter of 2026, with underwriting income soaring by 356%. This substantial growth was fueled by expansion in Accident & Health and High Net Worth insurance, alongside improved underwriting margins. The division reported an underwriting income of $114 million, rising dramatically from $25 million in the same period the previous year. Net premiums written saw a 7% increase to $1.80 billion, or 8% when currency fluctuations are considered.
The rise in premiums was primarily due to significant progress in Accident & Health and continuous organic growth in the High Net Worth segment. Revised commission terms in the High Net Worth business notably enhanced profitability. The combined ratio for this segment improved by 560 basis points to 92.9% from 98.5% a year prior. Similarly, the adjusted accident-year combined ratio decreased by 490 basis points to 91.2% from 96.1%, with a combined ratio below 100% indicating underwriting profitability.
This performance was driven by reduced underlying losses, better High Net Worth commission dynamics, and lower general operating expenses. Additionally, there were fewer charges related to catastrophic events. The Global Personal segment played a crucial role in AIG’s General Insurance operations, which saw a 9% increase in net premiums written to $7.52 billion and a 10% rise in underwriting income to $686 million. Overall, the combined ratio improved by 30 basis points to 89%.
General Insurance results included $210 million in catastrophe-related charges, up from $170 million the previous year. These charges encompassed $75 million in net losses from the Middle East conflict. Favorable prior-year development climbed to $145 million, compared to $112 million the previous year.
AIG's commercial operations exhibited mixed results. North America Commercial experienced a 24% rise in underwriting income to $372 million, with a 190 basis point improvement in its combined ratio to 84%. In contrast, International Commercial underwriting income fell by 33% to $200 million, with a combined ratio deterioration to 91.3%, partly impacted by losses from the Middle East conflict and ongoing pricing pressures.
On the corporate front, AIG reported a 10% increase in adjusted after-tax income per diluted share to $2, along with a Core Operating ROE of 11.1%. Net income attributable to common shareholders was $948 million, or $1.78 per diluted share. Throughout the quarter, AIG returned $904 million to shareholders, including $641 million from share repurchases and $263 million in dividends. Additionally, AIG completed its exit from Corebridge Financial, selling the remaining stake for approximately $710 million.
Eric Andersen, President and CEO of AIG, stated, “AIG delivered another strong quarter, marking an exceptional first half of the year and underscoring the benefits of our diversified global portfolio.” He further highlighted, “Our strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned into a more selective environment.”