EX-99.1 2 q22026earningsrelease.htm EX-99.1 Document Press Release Contacts: www.aig.com Quentin McMillan (Investors): quentin.mcmillan@aig.com Andrew Johnson (Media): andrew.r.johnson@aig.com AIG Delivers Strong Second Quarter Results and Exceptional First Half of the Year ■ General Insurance net premiums written (NPW) of $7.5 billion, an increase of 9% year-over-year on both a reported basis and a constant dollar basis*, driven by growth across all three business segments ■ General Insurance underwriting income of $686 million, an increase of 10% year-over-year ■ General Insurance combined ratio of 89.0% and Accident year combined ratio, as adjusted* (AYCR) of 88.1%, a 30 basis point improvement year-over-year in both metrics ■ Net income per diluted share of $1.78, a decrease of 10% year-over-year; Adjusted after-tax income* (AATI) per diluted share of $2.00, an increase of 10% year-over-year ■ Return on equity (ROE) of 9.4% and Core Operating ROE* of 11.1% ■ Returned $904 million of capital to shareholders, including $641 million of share repurchases and $263 million of dividends in the quarter ■ On May 7, AIG sold its remaining interest in Corebridge Financial, Inc. (Corebridge) for aggregate proceeds of approximately $710 million NEW YORK, August 6, 2026 – American International Group, Inc. (NYSE: AIG) today reported financial results for the second quarter ended June 30, 2026. “AIG delivered another strong quarter, marking an exceptional first half of the year and underscoring the benefits of our diversified global portfolio and continued momentum from organic growth and our recent strategic transactions,” said Eric Andersen, AIG President & Chief Executive Officer. “Adjusted after-tax income per diluted share was $2.00, increasing 10% year-over-year, and Core Operating ROE was 11.1%. Net premiums written grew 9% year-over-year on a constant dollar basis, or 11%* excluding North America Property, supported by top-line growth across all three business segments. We produced another solid quarter of underwriting profitability, with General Insurance underwriting income of $686 million, a calendar year combined ratio of 89.0% and an accident year combined ratio, as adjusted, of 88.1%. “Our strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment, where profitability and growth are increasingly dependent on line-specific dynamics. The breadth of our underwriting expertise and the diversity of our global portfolio remain important competitive advantages, allowing us to continue to pursue targeted growth in the segments where we expect to achieve the most attractive risk-adjusted returns. “We are building on our strong foundation as a market leader and best-in-class underwriting company. Our progress reflects the outstanding execution and commitment of our talented global team. We remain confident in our ability to meet our 2025 Investor Day financial objectives and see significant opportunity to leverage our global scale, strong brand and technical expertise to bring the full capabilities of AIG together to support our clients and stakeholders, while driving sustainable, profitable growth.” * Refers to financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be found in this press release under the heading Comment on Regulation G and Non-GAAP Financial Measures. 1 FINANCIAL SUMMARY Three Months Ended June 30, ($ and shares in millions, except per share amounts) 2025 2026 Net income attributable to AIG common shareholders $ 1,144  $ 948   Net income per diluted share attributable to AIG common shareholders $ 1.98  $ 1.78   Net investment income $ 1,466  $ 1,127   Net investment income, APTI basis 955  908   Adjusted pre-tax income (loss) $ 1,391  $ 1,404   General Insurance 1,492  1,546   Other Operations (101) (142) Adjusted after-tax income attributable to AIG common shareholders $ 1,044  $ 1,069   Adjusted after-tax income per diluted share attributable to AIG common shareholders $ 1.81  $ 2.00   Weighted average common shares outstanding - diluted 577.9  533.5   Return on equity 11.0  % 9.4   % Adjusted return on equity 9.7  % 10.2   % Core operating return on equity 11.7  % 11.1   % Book value per share $ 74.14  $ 77.39   Adjusted book value per share $ 76.62  $ 79.98   Adjusted tangible book value per share $ 69.81  $ 72.18   Core operating book value per share $ 63.71  $ 74.43   Common shares outstanding (in millions) 559.8  524.7   For the second quarter of 2026, Net income attributable to AIG common shareholders was $948 million, or $1.78 per diluted common share, compared to net income of $1.1 billion, or $1.98 per diluted common share, in the prior year quarter. The year-over-year decrease was primarily due to changes in the fair value of AIG's investment in Corebridge and equity securities, partially offset by higher underwriting income. AATI was $1.1 billion, or $2.00 per diluted common share, compared to $1.0 billion, or $1.81 per diluted common share in the prior year quarter, reflecting higher underwriting income, partially offset by lower Other Operations Net investment income. Total Net investment income for the second quarter of 2026 was $1.1 billion, compared to $1.5 billion in the prior year quarter, primarily due to changes in the fair value of AIG's investment in Corebridge and equity securities. Total Net investment income on an APTI basis was $908 million, compared to $955 million in the prior year quarter, due to lower Net investment income in Other Operations, while General Insurance Net investment income was flat year-over-year. AIG returned $904 million to shareholders in the second quarter of 2026 through $641 million of common stock repurchases, representing approximately 8 million shares, and $263 million of common stock dividends. At June 30, 2026, the total debt to total capital ratio was 18.1% and the total debt to total adjusted capital* ratio was 17.6%. During the quarter, AIG sold approximately 25 2 million shares of Corebridge common stock, representing our remaining interest in Corebridge, for aggregate proceeds of approximately $710 million. ROE and Core Operating ROE* were 9.4% and 11.1%, respectively, in the second quarter of 2026. Book value per share was $77.39 as of June 30, 2026, an increase of 4% from June 30, 2025. Adjusted tangible book value per share* was $72.18, an increase of 3% from June 30, 2025. On August 6, 2026, the AIG Board of Directors declared a quarterly cash dividend on AIG common stock of $0.50 per share. The dividend is payable on September 30, 2026 to shareholders of record at the close of business on September 16, 2026. 3 GENERAL INSURANCE Three Months Ended June 30, ($ in millions) 2025 2026 Change Gross premiums written $ 10,056  $ 10,943   9  % Net premiums written $ 6,880  $ 7,516   9  % Net premiums written, on constant dollar basis 9  % Underwriting income (loss) $ 626  $ 686   10  % Net investment income $ 871  $ 871   —  % Adjusted pre-tax income (a) $ 1,492  $ 1,546   4  % Underwriting ratios: General Insurance (GI) CR 89.3  89.0   (0.3) pts GI Loss ratio 58.3  58.2   (0.1) Less: impact on loss ratio Catastrophe losses and reinstatement premiums (2.9) (3.4) (0.5) Prior year development, net of prior year premiums 2.0  2.5   0.5  GI Accident year loss ratio, as adjusted 57.4  57.3   (0.1) GI Expense ratio 31.0  30.8   (0.2) GI Accident year combined ratio, as adjusted 88.4  88.1   (0.3) pts • Second quarter NPW of $7.5 billion increased 9% from the prior year quarter both on a reported basis and a constant dollar basis. The growth was primarily driven by continued organic growth in select high-performing segments and contributions from AIG’s recent strategic transactions, partially offset by North America Property lines. Excluding North America Property lines, General Insurance NPW growth was 11%* in the second quarter. • Underwriting income was $686 million, increasing 10% from the prior year quarter. • Total catastrophe-related charges were $210 million, representing 3.4 loss ratio points, compared to $170 million, representing 2.9 loss ratio points, in the prior year quarter. Second quarter 2026 included $75 million of net losses related to the Middle East conflict. • Second quarter 2026 included favorable prior year development (PYD), net of reinsurance and prior year premiums, of $145 million, compared to $112 million in the prior year quarter, primarily due to favorable development in U.S. Workers’ Compensation and U.S. Property and Special Risks, partially offset by slight strengthening in U.S. Excess Casualty. • The combined ratio was 89.0%, improving 30 basis points from 89.3% in the prior year quarter, largely due to higher favorable PYD and an improved expense ratio, partially offset by higher catastrophe-related charges. The AYCR was 88.1%, improving 30 basis points from 88.4% in the prior year quarter, driven by a lower accident year loss ratio, as adjusted* (AYLR) as well as a lower expense ratio. • General Insurance APTI was $1.5 billion, increasing 4% from the prior year quarter, driven by higher underwriting income. (a) In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes. 4 GENERAL INSURANCE - NORTH AMERICA COMMERCIAL Three Months Ended June 30, ($ in millions) 2025 2026 Change Net premiums written $ 2,863  $ 3,125   9  % Net premiums written, on constant dollar basis 9  % Underwriting income (loss) $ 301 $ 372   24  % Underwriting ratios: CR 85.9  84.0   (1.9) pts AYCR, as adjusted 86.2  86.7   0.5  pts • Second quarter NPW of $3.1 billion increased 9% from the prior year quarter, primarily driven by Retail Casualty and Financial Lines, partially offset by declines in Lexington, driven by Property. • The combined ratio was 84.0%, improving 190 basis points from 85.9% in the prior year quarter, driven by higher favorable PYD, lower catastrophe-related charges and lower general operating expense (GOE) ratio, partially offset by higher acquisition ratio and AYLR due to changes in business mix, in addition to rate pressure, particularly in Property. The AYCR was 86.7%, increasing 50 basis points from 86.2% in the prio r year quarter, primarily driven by higher acquisition ratio and AYLR, partially offset by lower GOE ratio. GENERAL INSURANCE - INTERNATIONAL COMMERCIAL Three Months Ended June 30, ($ in millions) 2025 2026 Change Net premiums written $ 2,325  $ 2,588   11  % Net premiums written, on constant dollar basis 10  % Underwriting income (loss) $ 300  $ 200   (33) % Underwriting ratios: CR 85.9  91.3   5.4  pts AYCR, as adjusted 85.0  87.3   2.3  pts • Second quarter NPW of $2.6 billion increased 11% from the prior year quarter, or 10% on a constant dollar basis, primarily driven by Property and Marine, partially offset by Financial Lines due to continued rate pressure. • The combined ratio was 91.3%, increasing 540 basis points from 85.9% in the prior year quarter, d riven by higher catastrophe-related charges , primarily due to losses related to the Middle East conflict, higher AYLR, reflecting rate pressure, and higher acquisition ratio, reflecting a combination of strong new business growth and changes in business mix. The AYCR was 87.3%, increasing 230 basis points from 85.0% in the prior year quarter, driven by hi gher AYLR and acquisition ratio. 5 GENERAL INSURANCE - GLOBAL PERSONAL Three Months Ended June 30, ($ in millions) 2025 2026 Change Net premiums written $ 1,692  $ 1,803   7  % Net premiums written, on constant dollar basis 8  % Underwriting income (loss) $ 25  $ 114   356  % Underwriting ratios: CR 98.5  92.9   (5.6) pts AYCR, as adjusted 96.1  91.2   (4.9) pts • Second quarter NPW of $1.8 billion increased 7% from the prior year quarter, or 8% on a constant dollar basis, primarily driven by strong growth momentum in Accident & Health and continued organic growth in the High Net Worth business. • The combined ratio was 92.9%, improving 560 basis points from 98.5% in the prior year quarter, primarily due to lower AYLR and acquisition ratio reflecting earn-in of improved High Net Worth business commission terms, lower GOE ratio and reduced catastrophe-related charges. The AYCR was 91.2%, improving 490 basis points from 96.1% in the prior year quarter. 6 OTHER OPERATIONS Three Months Ended June 30, ($ in millions) 2025 2026 Change Net investment income and other $ 92  $ 39   (58) % Corporate and other general operating expenses (90) (82) 9 Interest expense (101) (99) 2 Adjusted pre-tax loss before consolidation and eliminations $ (99) $ (142) (43) Total consolidation and eliminations (2) —   NM Adjusted pre-tax loss (a) $ (101) $ (142) (41) % (a) In the third quarter of 2025, AIG began excluding the net results of run-off businesses previously reported in General Insurance from Adjusted pre-tax income. • Other Operations predominantly consists of Net investment income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate GOE, and Interest expense. • Net Investment Income and Other was $39 million, compared to $92 million in the prior year quarter, which included $27 million of Corebridge dividends. In addition, the current quarter has lower Short-term Investment income. • Corporate and other GOE improved $8 million from the prior year quarter. • Interest expense increased $2 million from the prior year quarter. CONFERENCE CALL AIG will host a conference call tomorrow, Friday, August 7, 2026 at 8:30 a.m. ET to review these results. The call is open to the public and can be accessed via a live, listen-only webcast in the Investors section of www.aig.com . A replay will be available after the call at the same location. #    #    # Additional supplementary financial data is available in the Investors section at www.aig.com . 7 Cautionary Note on Forward-Looking Statements Certain statements in this press release and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‑looking statements are intended to provide management’s current expectations or plans for future operating and financial performance, based on assumptions currently believed to be valid and accurate. Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,” “expectations,” “intend,” “strive,” “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “view,” “target,” “goal,” “estimate” and other words of similar meaning in connection with a discussion of future operating or financial performance. These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation: • the impact of adverse developments affecting economic conditions in the markets in which we operate, including financial market conditions, a U.S. federal government shutdown, macroeconomic trends, changes in trade policies, including tariffs, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, pandemics, and geopolitical events or conflicts; • the occurrence of catastrophic events, both natural and man-made, which may be exacerbated by the effects of climate change; • disruptions in the availability or accessibility of our or a third party’s information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches or infrastructure vulnerabilities; • our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives; • our ability to successfully complete strategic transactions, including to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof; • the effects of changes in laws and regulations, including those relating to privacy, data protection, cybersecurity and AI, and the regulation of insurance, in the U.S. and other countries in which we operate; • concentrations in our investment portfolios; • changes in the valuation of our investments; • our reliance on third-party investment managers; • nonperformance or defaults by counterparties; • our reliance on third parties to provide certain business and administrative services; • our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures; 8 • changes in judgments or assumptions concerning insurance underwriting and insurance liabilities; • concentrations of our insurance, reinsurance and other risk exposures; • availability of adequate reinsurance or access to reinsurance on acceptable terms; • changes to tax laws in the countries in which we operate; • the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans; • the effects of sanctions and the failure to comply with those sanctions; • difficulty in marketing and distributing products through current and future distribution channels; • actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries; • changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; • our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters and to effectively execute on sustainability targets and standards; • our ability to effectively implement restructuring initiatives and potential cost-savings opportunities; • changes to sources of or access to liquidity; • changes in accounting principles and financial reporting requirements or their applicability to us; • the outcome of significant legal, regulatory or governmental proceedings; and • such other factors discussed in: • Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results o