AIG Q3 Net Income Jumps 62.6% to $844 Million as Storms Lift Combined Ratio to 91.3%
American International Group's third-quarter net income jumped 62.6% to $844 million, or $1.60 per diluted share, as the insurer's investment results improved, but adjusted after-tax income per share slipped 6.4% to $2.06 as storm losses ate into underwriting profit.
Net income a year earlier was $519 million, or $0.93 per share, according to the earnings release AIG filed with an 8-K on Tuesday. The company said the increase came mainly from changes in the fair value of its investments, higher General Insurance net investment income, higher earned premiums and lower net realized losses.
Adjusted after-tax income fell 11.4% to $1.086 billion from $1.226 billion, which AIG attributed to lower underwriting income and lower investment income in Other Operations.
"AIG delivered strong profitability and premium growth in the third quarter rounding out an outstanding first nine months of 2026," President and CEO Eric Andersen said in the release.
Premiums grow, storms bite
General Insurance net premiums written rose 6.8% to $6.651 billion from $6.230 billion, or 8% on a constant-dollar basis, with growth in both Global Commercial and Global Personal. Excluding North America Property lines, net premiums written grew 10%, the company said.
Underwriting income dropped 28.9% to $564 million from $793 million. Catastrophe-related charges reached $283 million, or 4.4 loss-ratio points, driven by severe convective storms in North America, compared with $100 million a year earlier. Favorable prior-year reserve development shrank to $91 million from $180 million.
That pushed the combined ratio to 91.3% from 86.8%. The accident-year combined ratio excluding catastrophes was 88.4%, versus 88.3%.
Segment picture
- North America Commercial: net premiums written rose 1.9% to $2.481 billion, but underwriting income fell 56.5% to $167 million and the combined ratio rose to 92.9% from 82.6%.
- International Commercial: net premiums written climbed 12.9% to $2.387 billion; underwriting income fell to $283 million from $330 million.
- Global Personal: net premiums written rose 6.1% to $1.783 billion, or 9% in constant dollars, and underwriting income rose 44.3% to $114 million as the combined ratio improved to 93.2% from 95.2%.
General Insurance net investment income rose 9.2% to $1.032 billion.
Capital return and dividend
AIG returned $787 million to shareholders in the quarter: $527 million of stock repurchases, covering an estimated 7 million shares, the company said, plus $260 million of dividends.
The board declared a quarterly cash dividend of $0.50 per share, payable Dec. 30 to shareholders of record on Dec. 16, according to the filing.
Book value per share was $74.96, down 0.6% from $75.45 a year earlier, while adjusted book value per share rose 5.5% to $81.25. Return on equity was 8.5% and core operating return on equity was 11.1%, down from 13.6%.
The company will hold a conference call on Wednesday, Nov. 4, at 8:30 a.m. ET.
By the numbers
- Net income: $844 million, up 62.6%
- Diluted EPS: $1.60, versus $0.93
- Adjusted after-tax EPS: $2.06, down 6.4%
- Net premiums written: $6.651 billion, up 6.8%
- Combined ratio: 91.3%, versus 86.8%
- Quarterly dividend: $0.50 per share
Sources
- American International Group Form 8-K with third-quarter 2026 earnings release and quarterly dividend declaration, filed Nov. 3, 2026 (accession 0000005272-26-000101)
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