01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
For the first quarter of 2026, American International Group, Inc. (AIG) demonstrated a mixed financial performance.
Net income attributable to AIG common shareholders increased by 9% to $763 milliona, or $1.41 per diluted share, compared to the prior year, driven by improved underwriting income in its General Insurance segment. This improvement was largely due to lower catastrophe losses and favorable prior year reserve development, leading to a significant reduction in the combined ratio to 87.3% from 95.8% in the prior year.
However, Net Investment Income saw a substantial decrease of 36% to $712 millionb, primarily impacted by unfavorable changes in the fair value of investments in Corebridge and equity securities, and lower income from alternative investments and mortgage loans. Despite these investment headwinds, the company's strategic repositioning and focus on underwriting profitability appear to be yielding positive operational results, though investors should closely monitor the impact of market volatility on investment income going forward.
02—Key points
Key Highlights
- Net income attributable to AIG common shareholders increased by 9% to $763 million ($1.41/share diluted) compared to Q1 2025.
- Total net investment income decreased by 36% to $712 million, largely due to valuation changes in Corebridge and equity securities.
- General Insurance underwriting income improved significantly due to lower catastrophe losses and favorable prior year reserve development.
- The General Insurance combined ratio improved by 8.5 points to 87.3%, indicating stronger underwriting performance.
- Net premiums written in General Insurance increased by 24% to $5,599 million.
- AIG completed strategic acquisitions of a 35% equity interest in Convex Group Limited for $2.1 billion and a 9.9% stake in Onex Corporation for $642 million.
- The company declared an 11% increased quarterly dividend of $0.50 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.65B$6.78B | −2.0% |
| SG&A Expenses | $1.14B$1.11B | +2.0% |
| Interest Expense | $100.00M$92.00M | +8.7% |
| Net Income | $763.00M$698.00M | +9.3% |
| EPS (Basic) | $1.42$1.18 | +20.3% |
| EPS (Diluted) | $1.41$1.16 | +21.6% |
| Shares Outstanding (Basic) | 538.05M593.84M | −9.4% |
| Shares Outstanding (Diluted) | 542.16M599.24M | −9.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of the increase in net income?
The increase in net income was primarily driven by improved underwriting results in the General Insurance segment, which benefited from lower catastrophe losses and favorable prior year reserve development. This offset a significant decrease in net investment income.
What caused the significant decrease in Net Investment Income?
The substantial 36% decrease in Net Investment Income was mainly due to unfavorable changes in the fair value of AIG's investments in Corebridge and equity securities, along with lower income from alternative investments and mortgage loans.
How did the company's strategic acquisitions impact the financial statements?
AIG closed on acquisitions of Convex Group Limited and Onex Corporation in February 2026. The investment in Convex is recognized as an equity method investment in Other Invested Assets, contributing to net investment income. The acquisition of Onex is reflected as an equity security at fair value. These strategic moves are part of AIG's broader investment strategy.
What is the outlook for dividends and share repurchases?
AIG's Board of Directors declared an 11% increased quarterly dividend of $0.50 per share, payable in June 2026. The company also has $3.2 billion remaining under its share repurchase authorization and actively repurchased shares during the quarter and continues to do so in April 2026, indicating a commitment to returning capital to shareholders.
06—Continue