American International Group, Inc.

What they do

AIG operates primarily through its General Insurance segment, which includes commercial and personal lines property and casualty insurance. The company also has other operations that include legacy and runoff businesses. Its international subsidiaries are regulated in the UK, EU, Bermuda, Singapore, and Japan, and AIG is subject to consolidated group supervision by U.S. insurance regulators under covered agreements with the EU and UK.

Revenue drivers

• General Insurance — Net premiums written of $7.5 billion in Q2 2026, up 9% year-over-year on a reported and constant dollar basis, with growth across all three business segments. This is the primary revenue generator, contributing underwriting income of $686 million in the quarter.
• Net investment income — Net investment income was $1.127 billion in Q2 2026 (down from $1.466 billion in Q2 2025), a significant income source. On an APTI basis, it was $908 million, slightly below the prior year's $955 million.
• North America Property (within General Insurance) — Excluding this segment, General Insurance NPW grew 11% on a constant dollar basis, implying this segment is a meaningful but slower-growing part of the portfolio. Management highlighted targeted growth opportunities outside this segment.

Recent performance

In Q2 2026, AIG reported net income attributable to common shareholders of $948 million, or $1.78 per diluted share, down 10% year-over-year. Adjusted after-tax income (AATI) per diluted share rose 10% to $2.00, and Core Operating ROE was 11.1%. General Insurance combined ratio improved to 89.0% and accident year combined ratio, as adjusted, improved 30 basis points to 88.1%. Revenue from the latest quarterly reports shows sequential growth from $6.35B (Sep 2025) to $7.08B (Jun 2026). For fiscal year 2025, net income was $3.10B on revenue of $26.77B.

Strategy

Management emphasizes a diversified global portfolio, underwriting discipline, and targeted growth in segments with attractive risk-adjusted returns. They are focused on leveraging global scale, brand, and technical expertise to bring full capabilities together. Recent strategic moves include selling the remaining stake in Corebridge in May 2026 for ~$710 million and returning $904 million to shareholders in Q2 2026. AIG is also investing in technology, including AI, and managing regulatory and market dynamics selectively.

Risks

• Rating downgrade — A downgrade of insurer financial strength or credit ratings could hinder new business, increase financing costs, and trigger regulatory scrutiny.
• Catastrophic events and climate change — Natural and man-made catastrophes, exacerbated by climate change, could lead to higher claims and underwriting losses.
• Market and macroeconomic conditions — Adverse economic conditions, tariffs, inflation (including social inflation), commercial real estate pressures, and geopolitical conflicts could affect investment income and underwriting results.
• Regulatory and legal changes — Changes in laws, including privacy, data protection, cybersecurity, and AI, as well as insurance regulation in the U.S. and abroad, could increase compliance costs and alter business practices.

Outlook

Management remains confident in meeting 2025 Investor Day financial objectives, citing strong first-half momentum. They see continued opportunity for sustainable, profitable growth while navigating a more selective pricing environment. They plan to continue returning capital and executing strategic transactions to enhance shareholder value.