Q2 2026 American International Group Inc Earnings Call Transcript
Key Points
- Adjusted after-tax income per diluted share increased 10% year over year to $2, with core operating ROE of 11.1% in Q2 and 11.6% for the first half of 2026.
- Underwriting income rose 10% year over year to $686 million, with the accident year combined ratio improving 30 basis points to 88.1%.
- Net premiums written grew 9% (11% excluding North American Property), driven by strong organic growth in select commercial segments and contributions from strategic transactions.
- Global Personal Insurance showed significant improvement, with underwriting income up nearly $90 million year over year and the accident year combined ratio improving 490 basis points to 91.2%.
- Capital management remains robust, with $904 million returned to shareholders in Q2, including $641 million in share repurchases, and the completion of the Corebridge separation.
- North American property market remains under pressure, with pricing declines and excess capacity leading to a 9 percentage point reduction in premium retention at Lexington Property.
- International Commercial renewal pricing declined 6%, with global energy pricing down 15% and financial lines down 4%, reflecting competitive market conditions.
- The accident year combined ratio for International Commercial increased 230 basis points to 87.3%, driven by rate pressure and a higher acquisition ratio.
- Reserve strengthening in US excess casualty, particularly for accident years 2016 and 2023, partially offset favorable development in other lines.
- Alternative investment income declined to $13 million from $48 million in the prior year quarter, due to a loss in private equity.
Good day and welcome to AIG's second-quarter 2026 financial results conference call. This conference is being recorded.
Now at this time, I would like to turn the conference over to Quentin McMillan. Please go ahead.
Thanks very much, Michelle, and good morning. Today's remarks may include forward-looking statements, which are subject to risks and uncertainties. These statements are not guarantees of future performance or events and are based on management's current expectations. AIG's filings with the SEC provide details on important factors that could cause actual results or events to differ materially.
Except as required by applicable securities laws, AIG is under no obligation to update any forward-looking statements if circumstances or management's estimates or opinions should change. Today's remarks may also refer to non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP figures is
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