AIG Reports Q2 2026 Financial Results with Decrease in Net Income

American International Group, Inc. (AIG) reported its financial results for the second quarter of 2026, revealing a net income attributable to common shareholders of $948 million, or $1.79 per share, a decrease from $1,144 million, or $2.00 per share, in the same period last year. For the first half of 2026, net income was $1.711 billion, compared to $1.842 billion in the first half of 2025. Total revenues for the second quarter were $7.085 billion, slightly down from $7.091 billion in the prior year, while total revenues for the first half of 2026 were $13.735 billion, down from $13.874 billion in 2025. The decline in net income was attributed to lower net investment income and higher net realized losses, particularly related to changes in the fair value of investments.

AIG's total investments as of June 30, 2026, amounted to $91.676 billion, a slight decrease from $92.999 billion at the end of 2025. The company reported a total liability of $122.838 billion, up from $120.092 billion at the end of the previous fiscal year. The increase in liabilities was primarily driven by a rise in unearned premiums, which increased to $20.035 billion from $17.991 billion. The company’s total assets increased to $163.464 billion from $161.254 billion, reflecting a growth in premiums and other receivables.

Strategically, AIG completed significant acquisitions in early 2026, including a 35% equity interest in Convex Group Limited for $2.1 billion and a 9.9% stake in Onex Corporation for $642 million. These investments are expected to enhance AIG's portfolio and provide additional income streams. The company also reported a favorable development in prior year loss reserves, contributing positively to underwriting income, particularly in the North America Commercial segment.

Operationally, AIG's General Insurance segment saw net premiums written increase by 9% to $7.516 billion in the second quarter, driven by growth in Casualty and Financial Lines. The combined ratio improved to 89.0% from 89.3% year-over-year, indicating better underwriting performance. The company’s employee headcount remained stable, and it continues to focus on enhancing its market share across various geographic regions, including North America and international markets.

Looking ahead, AIG anticipates continued challenges in the investment landscape, particularly due to fluctuating interest rates and market conditions. The company remains committed to its strategic initiatives, including optimizing its investment portfolio and enhancing operational efficiencies. AIG's management expressed confidence in the company's ability to navigate these challenges while maintaining a strong capital position and delivering value to shareholders.