AIG Reports $763 Million Net Income in Q1 2026, Driven by Improved Underwriting

American International Group, Inc. (AIG) reported its financial results for the first quarter of 2026, revealing a net income of $763 million, or $1.42 per share, compared to $698 million, or $1.18 per share, in the same period last year. This represents a 9% increase in net income attributable to AIG common shareholders, driven primarily by improved underwriting income and lower catastrophe losses. Total revenues for the quarter were $6.65 billion, a slight decrease from $6.78 billion in the prior year, largely due to a significant drop in net investment income, which fell by 36% to $712 million from $1.1 billion.

The company experienced a 5% increase in premiums, totaling $6.07 billion, compared to $5.77 billion in the previous year. This growth was attributed to strategic transactions and organic growth in its North America Commercial and International Commercial segments. However, net investment income was adversely affected by changes in the fair value of AIG's investments in Corebridge and equity securities, which contributed to a decline in overall investment income. The company also reported net realized losses of $135 million, up from $103 million in the prior year, reflecting challenges in the investment environment.

AIG's operational metrics showed a positive trend, with underwriting income rising to $774 million, a significant increase from $243 million in the previous year. The combined ratio improved to 87.3%, down from 95.8%, indicating better efficiency in managing claims and expenses. The North America Commercial segment reported a 37% increase in net premiums written, while the International Commercial segment saw a 21% increase. The Global Personal segment also contributed positively, with a 17% rise in net premiums written.

Strategically, AIG made significant investments, including the acquisition of a 35% equity interest in Convex Group Limited for $2.1 billion and a 9.9% stake in Onex Corporation for $642 million. These acquisitions are expected to enhance AIG's capabilities in specialty insurance and asset management. Additionally, AIG sold 24.7 million shares of Corebridge common stock for $750 million, reducing its ownership stake but providing liquidity for further investments and operational needs.

Looking ahead, AIG remains focused on maintaining its financial strength and operational efficiency. The company anticipates continued growth in premiums and improved underwriting results, although it acknowledges potential challenges in the investment landscape. AIG's management emphasized the importance of strategic investments and operational discipline to navigate market conditions and enhance shareholder value.