American International Group (AIG) opened 2026 with a strong first quarter, posting sharply higher underwriting and operating results across its General Insurance businesses on the back of growth in North America commercial, international commercial and global personal lines.

For the quarter ended March 31, 2026, net income attributable to common shareholders rose to $763 million, or $1.41 per diluted share, from $698 million, or $1.16 per share, a year earlier. Adjusted after-tax income (AATI) increased to $1.15 billion, or $2.11 per diluted share, from $702 million, or $1.17 per share, an 80% year-over-year increase per share. Core operating return on equity improved to 12.2% from 7.7%, while adjusted return on equity rose to 10.9% from 6.4%.

“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,” said Peter Zaffino, AIG chairman and CEO. “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%.”

Top-line growth and stronger underwriting

General Insurance net premiums written (NPW) rose 24% year over year to $5.6 billion on a reported basis, or 18% on a constant-dollar basis. On that basis, North America Commercial NPW increased 36%, International Commercial 12% and Global Personal 11%, supported by strategic transactions, reinsurance program changes and organic growth in targeted areas.

General Insurance underwriting income more than tripled to $774 million from $243 million. The calendar-year combined ratio improved to 87.3% from 95.8%, an 8.5‑point gain. The accident-year combined ratio, as adjusted, improved to 86.6% from 87.8%, mainly due to a lower expense ratio; the underlying accident-year loss ratio, as adjusted, was unchanged at 57.3%, indicating that most of the margin improvement came from lower catastrophe losses, better prior-year development (PYD) and expense discipline.

Catastrophe-related charges fell to $180 million, or 3.0 loss‑ratio points, from $525 million, or 9.1 points, a year earlier. Favorable PYD, net of reinsurance and prior-year premiums, increased to $132 million from $64 million, driven largely by reserve releases in U.S. property and U.S. financial lines. General Insurance adjusted pre-tax income rose 67% to $1.63 billion, aided by a 17% increase in segment net investment income.

Underwriting and growth versus other global P&C carriers

AIG’s General Insurance calendar-year combined ratio of 87.3% and adjusted accident-year combined ratio of 86.6% place it broadly in line with large commercial peers, though still above the most profitable franchises. Chubb continues to report low‑80s combined ratios in its global commercial book, while Travelers’ consolidated combined ratio has generally been in the high‑80s to around 90%, depending on catastrophe load and mix.

On growth, AIG’s 24% NPW increase outpaces many large carriers, which have been reporting mid‑single‑ to low double‑digit premium growth. AIG’s 36% constant‑currency growth in North America Commercial and 12% in International Commercial indicate a more expansionary stance than many competitors, supported by quota‑share and reinsurance arrangements as well as organic initiatives.

Core operating ROE of 12.2% moves AIG closer to peer norms, with groups such as Chubb and Travelers often generating low‑ to mid‑teens core or underlying ROEs depending on catastrophe and investment experience. The shift from high‑single‑digit to low‑teens core returns suggests AIG’s multi‑year restructuring and capital actions are feeding through into more competitive capital efficiency.

Investment income, capital management and market implications

Total net investment income declined 36% to $712 million from $1.11 billion, mainly due to fair‑value movements in AIG’s stake in Corebridge Financial and other equity securities. On an adjusted pre‑tax income basis, however, net investment income rose 8% to $915 million, helped by higher yields on available‑for‑sale fixed‑maturity holdings; General Insurance net investment income was up 17%.

Other Operations recorded an adjusted pre‑tax loss of $125 million versus a $66 million loss a year earlier, reflecting lower parent‑level net investment income and reduced Corebridge dividends following further stake sales. During the quarter, AIG cut its Corebridge ownership to 5.6%, raising about $750 million and continuing its simplification of life and retirement exposure.

The results highlight a carrier that has largely completed its restructuring phase and is now competing more actively on growth in commercial and high‑net‑worth lines, while still emphasizing underwriting discipline and capital returns in a market where pricing tailwinds are moderating.