AIG Posts $844 Million in Third-Quarter Net Income as Adjusted Income Falls
Key Facts
AIG reported net income attributable to common shareholders of $844 million, or $1.60 per diluted share, in the third quarter ended September 30, 2026, compared with $519 million and $0.93 a year earlier. But adjusted after-tax income fell to $1.086 billion, or $2.06 per share, from $1.226 billion and $2.20 in the corresponding period of 2025. The divergence between the two measures shows that the rise in accounting net income was not accompanied by growth in adjusted earnings. Chief Executive Eric Andersen said the company was making progress toward its 2025 Investor Day targets. AIG linked its results to its diversified global portfolio and execution of its strategy.
Net premiums written in general insurance totaled $6.651 billion, up 7% on a reported basis and 8% on a constant-currency basis from the third quarter of 2025. The company attributed the growth to Global Commercial and Global Personal Insurance. Andersen said premiums grew 8% on a constant-currency basis, and 10% excluding North American property lines. He added that underwriting income was $564 million, while the combined ratio reached 91.3%. Core operating return on equity was 11.1% during the quarter.
Despite the increase in premiums, general insurance underwriting income fell 29% to $564 million from $793 million a year earlier. The combined ratio rose to 91.3% from 86.8% in the corresponding quarter, an increase of 4.5 percentage points. The accident-year ratio was 88.4%, compared with an overall ratio of 91.3%. Catastrophe-related losses affected results, totaling $283 million, equivalent to 4.4 points on the loss ratio. Those charges were $100 million, or 1.6 points, a year earlier.
AIG attributed the quarter's catastrophe losses to severe convective storms in North America, which increased claims costs compared with the same period last year. In second-quarter results published on August 6, 2026, Andersen said the insurance market had moved from "a prolonged period of broad-based favorable pricing to a more selective environment." That description provides context for the divergence between premium growth and the decline in underwriting income in the latest results. The higher combined ratio, alongside increased catastrophe charges, also highlighted the pressure claims placed on general insurance profitability. Premium growth alone did not reverse the year-over-year direction of underwriting income.
On the investment side, net investment income rose to $1.1 billion in the third quarter of 2026, compared with $772 million in the same period a year earlier. The company attributed the increase mainly to changes in the fair value of its investments and higher income from available-for-sale fixed-income securities. The improvement in investment income contributed to the period's results as adjusted after-tax income declined. The comparison between different income sources highlights the differing paths of investment performance and general insurance underwriting. The company did not provide a separate figure for the size of the impact of either investment factor in the reported results.
AIG returned $787 million to shareholders during the quarter, including $527 million in common stock repurchases and $260 million in cash dividends. On November 3, 2026, the board announced a quarterly cash dividend of $0.50 per share. The dividend is payable on December 30 to shareholders of record on December 16. The move follows the return of capital during the quarter through repurchases and dividends, while net and adjusted income results diverged year over year. The company is scheduled to host a conference call to review results on November 4, 2026, at 8:30 a.m. Eastern time.