01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
American International Group, Inc. (AIG) reported a net income of $948 milliona for the three months ended June 30, 2026, a decrease from $1,144 million in the prior year period.
This decline was primarily driven by lower net investment income, which was impacted by changes in the fair value of investments in Corebridge and equity securities, as well as reduced income from alternative investments and mortgage loans. Despite the decrease in net income, the company's General Insurance segment demonstrated resilience, with underwriting income increasing by 10%b and the combined ratio improving to 89.0%. This improvement was supported by higher net favorable prior year reserve development and lower catastrophe losses.
Operationally, AIG has strategically divested its remaining interest in Corebridge Financial, Inc. in May 2026, completing its exit from the investment. The company also made significant strategic investments, acquiring stakes in Convex Group Limited and Onex Corporation in February 2026.
These actions reflect AIG's ongoing efforts to refine its portfolio and focus on core insurance operations. The company repurchased approximately $1.2 billionc of its common stock and declared a quarterly dividend of $0.50 per share, signaling a continued commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Net income attributable to AIG common shareholders decreased by 17% to $948 million for the three months ended June 30, 2026, compared to $1,144 million for the same period in 2025.
- Net investment income declined by 23% to $1,127 million due to lower fair value of investments in Corebridge and equity securities, as well as reduced income from alternative investments and mortgage loans.
- The General Insurance segment reported a 10% increase in underwriting income to $686 million and an improved combined ratio of 89.0% for the three months ended June 30, 2026.
- North America Commercial and Global Personal segments showed significant improvements in underwriting results, with combined ratios of 84.0% and 92.9%, respectively.
- AIG completed the sale of its remaining interest in Corebridge Financial, Inc. in May 2026, realizing approximately $710 million in proceeds.
- The company made strategic investments in Convex Group Limited (35% equity interest) and Onex Corporation (9.9% ownership stake) in February 2026.
- AIG repurchased approximately $1.2 billion of its common stock during the first six months of 2026 and declared a quarterly dividend of $0.50 per share.
03—Questions
Frequently Asked Questions
What was AIG's net income for the second quarter of 2026, and what factors influenced this result?
For the three months ended June 30, 2026, AIG reported a net income of $948 million, a decrease from $1,144 million in the same period of 2025. This decline was primarily attributed to a significant drop in net investment income, largely due to unfavorable changes in the fair value of investments in Corebridge and equity securities, along with lower income from alternative investments and mortgage loans. These impacts were partially offset by an increase in underwriting income from the General Insurance segment.
How did the General Insurance segment perform in the second quarter of 2026?
The General Insurance segment showed strong performance, with underwriting income increasing by 10% to $686 million and the combined ratio improving by 0.3 points to 89.0% for the three months ended June 30, 2026. This improvement was driven by higher net favorable prior year reserve development and lower catastrophe losses, particularly benefiting the North America Commercial and Global Personal segments. Net premiums written also saw a healthy increase.
What significant strategic actions did AIG take in the second quarter of 2026?
AIG completed its strategic divestment from Corebridge Financial, Inc. by selling its remaining interest in May 2026. In February 2026, the company made strategic investments by acquiring a 35% stake in Convex Group Limited and a 9.9% stake in Onex Corporation. These moves suggest a continued focus on optimizing the company's investment portfolio and strategic positioning.
How is AIG managing its capital and returning value to shareholders?
AIG demonstrated its commitment to shareholder returns by repurchasing approximately $1.2 billion of its common stock during the first six months of 2026. Additionally, the company declared a quarterly dividend of $0.50 per share, indicating confidence in its financial stability and future earnings potential. The company also reported that $2.6 billion remained available under its share repurchase authorization as of July 31, 2026.
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