Global insurer AIG’s General Insurance (GI) business saw its underwriting income more than triple to $774 million in the first quarter of 2026 as a result of lower catastrophe losses, while gross premiums written (GPW) rose 11% year-on-year to more than $10 billion.
Alongside the rise in GPW, net premiums written (NPW) rose 24% year-on-year to $6 billion, primarily driven by the impact of strategic transactions, changes to its reinsurance programme, and organic growth in targeted areas, explains AIG. NPW in North America Commercial increased 37%, in International Commercial rose by 21%, and in Global Personal premiums were up 17% year-on-year.
Total catastrophe-related charges in the period amounted to $180 million, which is far lower than the $525 million recorded a year earlier.
Additionally, AIG benefited from favourable prior year development, net of reinsurance and prior year premiums, of $132 million in Q1’26, an increase on the prior year’s $64 million, driven by favorable development in US Property and US Financial Lines.
The GI combined ratio strengthened by 850bps to 87.3% for Q1’26, while the accident year combined ratio improved to 86.6% from 87.8%, driven by a lower expense ratio.
Net investment income within GI totalled $864 million in Q1’26, an increase of 17% on the prior year’s $736 million.
The segment’s adjusted pre-tax income increased by 67% year-on-year to more than $1.6 billion in Q1’26, driven by higher underwriting income and higher investment income when compared with the previous year.
AIG’s Other Operations, which predominantly consists of net investment income from the AIG Parent liquidity portfolio, Corebridge dividend income, corporate GOE, and interest expense, recorded a loss of $125 million in Q1’26, steeper than the prior year’s loss of $66 million.
Group-wide, AIG delivered net income attributable to common shareholders of $763 million in Q1’26, up on last year’s $698 million, while net investment income fell to $712 million from more than $1.1 billion. Adjusted pre-tax income increased to over $1.5 billion in Q1’26, compared with $909 million a year earlier. Return on equity was 7.5% in Q1’26, so above last year’s 6.7%.
Peter Zaffino, AIG Chairman & Chief Executive Officer, commented: “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. The adjusted after-tax income per diluted share was $2.11 for the quarter, an 80% increase year-over-year, and Core Operating ROE was 12.2%.
“We delivered impressive top-line growth with net premiums written increasing 24% year-over-year on a reported basis or 18% on a constant dollar basis. North America Commercial increased 36% year-over-year, International Commercial increased 12% and Global Personal increased 11%, all on a constant dollar basis. All three segments performed exceptionally well, supported by our recent strategic transactions, favorable January 1 reinsurance renewal outcomes and profitable organic growth.
“Underwriting income for 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 accident year combined ratio, as adjusted, was 86.6%, an improvement of 120 basis points year-over-year.
“We continue to execute against a disciplined capital management strategy, maintaining a strong balance sheet and returning capital to shareholders. During the quarter, we returned $760 million of capital to shareholders, including $519 million of share repurchases and $241 million of dividends.
“On April 30, the AIG Board of Directors approved an 11% increase in our quarterly dividend to $0.50 per share starting in the second quarter of 2026, the fourth consecutive year of double-digit percentage increases, reflecting confidence in the long-term outlook of AIG.
“Looking ahead, we are confident in our ability to navigate an increasingly complex global risk landscape while continuing to deliver disciplined, profitable growth, and we remain on track to meet or exceed the financial objectives that we outlined at our Investor Day in March 2025. Our ability to consistently 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 effort, commitment and capacity to execute.”
