01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
American International Group (AIG) reported second-quarter 2026 results on August 6, 2026, showing a mixed headline picture beneath solid operating performance.
GAAP net income attributable to common shareholders fell 17% year-over-year to $948 milliona ($1.78 per diluted share, down 10%), driven mainly by swings in the fair value of the Corebridge stake and equity securities. Adjusted after-tax income (AATI) rose 2% in dollar terms to $1,069 million, and AATI per diluted share increased 10% to $2.00, helped by a lower share count after heavy buybacks. The underlying General Insurance business was the main driver of quality.
Net premiums written grew 9% on both reported and constant-dollar bases to $7.5 billionb, and excluding North America Property the growth rate was 11%. General Insurance underwriting income rose 10% to $686 million, the calendar-year combined ratio improved 30 basis points to 89.0%, and the accident year combined ratio, as adjusted, improved to 88.1%. Results were not uniform across segments: International Commercial deteriorated sharply (combined ratio up 540 bps to 91.3%, largely from Middle East conflict losses), while Global Personal improved substantially.
Capital management remained active. AIG returned $904 millionc to shareholders in the quarter ($641 million of buybacks, roughly 8 million shares, and $263 million of dividends), completed the sale of its remaining Corebridge stake for about $710 million, and declared a $0.50 quarterly dividend payable September 30, 2026.
Book value per share reached $77.39d (up 4% year-over-year), while core operating ROE was 11.1%, versus 11.7% a year earlier. Management reiterated confidence in its 2025 Investor Day financial objectives while noting that the market has shifted toward a more selective pricing environment.
02—Key points
Key Highlights
- General Insurance NPW of $7.5 billion, up 9% year-over-year (9% constant dollar; 11% excluding North America Property), with growth across all three segments
- General Insurance underwriting income of $686 million (+10%); calendar-year combined ratio improved 30 bps to 89.0%, and AYCR (as adjusted) improved 30 bps to 88.1%
- GAAP EPS of $1.78 (down 10%) reflected lower investment income from fair value changes, while adjusted EPS rose 10% to $2.00
- Completed exit of the remaining Corebridge stake (~25 million shares) for approximately $710 million in proceeds on May 7, 2026
- Returned $904 million to shareholders in Q2 ($641 million buybacks, $263 million dividends); declared a $0.50 quarterly dividend payable September 30, 2026
- Book value per share of $77.39 (+4% YoY); core operating ROE of 11.1% vs. 11.7% a year earlier; ROE of 9.4%
- International Commercial combined ratio deteriorated 540 bps to 91.3%, driven by Middle East conflict-related catastrophe losses and rate pressure, a key area to monitor
03—Questions
Frequently Asked Questions
Did AIG's earnings grow in the second quarter of 2026?
It depends on the measure. GAAP net income attributable to common shareholders fell to $948 million ($1.78 per diluted share) from $1.1 billion ($1.98) a year earlier, mainly because of fair value changes in the Corebridge investment and equity securities. Adjusted after-tax income per diluted share rose 10% to $2.00, reflecting higher underwriting income and a lower share count.
How healthy is AIG's underlying insurance business?
Fundamentals look solid. General Insurance net premiums written grew 9%, underwriting income rose 10% to $686 million, and the calendar-year combined ratio improved to 89.0%. Management noted the market is becoming more selective, so future growth will depend more on line-specific dynamics. North America Property was a drag on growth, and International Commercial margins weakened notably.
What was the impact of the Middle East conflict on AIG?
AIG reported $75 million of net losses related to the Middle East conflict in the second quarter. Most of the impact fell in International Commercial, where the combined ratio rose to 91.3% largely due to higher catastrophe-related charges. Total catastrophe-related charges were $210 million, or 3.4 loss ratio points, versus 2.9 points a year earlier.
Is AIG's dividend and capital return program sustainable?
AIG declared a quarterly dividend of $0.50 per share, payable September 30, 2026, to holders of record on September 16, 2026. In the quarter it returned $904 million to shareholders, including $641 million of buybacks. The debt-to-total-adjusted-capital ratio was 17.6%, and the sale of the Corebridge stake provided about $710 million in additional capital, supporting continued returns.
What does the Corebridge exit mean for AIG going forward?
AIG sold its remaining Corebridge interest for about $710 million, fully exiting the position. This removes the volatility that Corebridge fair value changes introduced into GAAP earnings and lowers the Core Operating ROE denominator, since AIG's Corebridge stake was excluded from core operating equity. Going forward, GAAP results will track underwriting performance and investment income more directly.
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