Peter Zaffino, Chairman and Chief Executive Officer (CEO) of global insurer AIG, said today that he’s “very pleased” with the carrier’s outcome at the January 1st, 2026, reinsurance renewals, as the environment was very favourable for buyers amid an increased supply of reinsurance capacity.
As is typical on AIG’s fourth quarter earnings call, CEO Zaffino provided some details on the firm’s 1.1 renewal experience. He explained that benign loss activity in the second half of the year led to increased reinsurance capacity, which ultimately drove a favourable renewal environment for insurers like AIG.
“As a general statement, although reinsurers were prepared to compromise on pricing, they remain disciplined on attachment points at 1.1. Our long-term belief in holding firm on attachment points has proven to be advantageous for AIG. We’ve always said, once you give it up, you don’t get it back, and that remains true today,” said Zaffino.
At 1.1 2026, AIG “achieved enhanced terms and favorable pricing,” said Zaffino, adding that the firm “benefited significantly from the current environment with more aggregate capacity available in the market, our consistent buying, an attractive portfolio, and the exceptional relationships we’ve developed with our reinsurance partners.”
AIG’s property catastrophe reinsurance program continued to improve at the January renewal, with the insurer witnessing a weighted average risk-adjusted rate decrease in excess of 15%, which Zaffino said yields substantial year-on-year savings.
This is in line with broker reports, which pegged global property cat rate decreases at between 10% and 20%, on average, at the January renewals.
“The return periods of the attachments of our property catastrophe coverage is broadly lower across our geographies and businesses. Our exhaust limit is at a comparable level for all regions worldwide,” said Zaffino.
Also at 1.1 2026, AIG was able to collapse the high net worth placement into its North America occurrence layer for the 500 XS 500 layer. Additionally, Zaffino revealed that the company achieved further efficiency in its aggregate protection, including a single maximum contributing loss, rather than a separate one for each of the North America commercial and global personal portfolios.
In terms of casualty, Zaffino highlighted a reinsurance market that differentiates for quality, leading to AIG’s treaties being renewed with exceptional pricing and terms and conditions.
“Our quota share in North America maintained a very attractive ceding commission in the low 30s. Our excess of loss attachment and limits remain the same as the expiring treaties. However, our rate on subject premium decreased year over year. Finally, we were able to add the Everest portfolio into the treaty at AIG pricing and terms without an increase in nominal cost,” he said.
“Overall. I’m very pleased with our 1.1 renewals. Our approach to reinsurance continues to be an important component of our strategy to minimize volatility in our portfolio and positions AIG well for 2026,” added Zaffino.
