10-Q · August 7, 2026
AIG delivered flat second-quarter revenue of $7,085 million and reported diluted EPS of $1.78, with EPS improving sequentially but declining 10% year over year. Underwriting trends were constructive: General Insurance…
Earnings analysis · 10-Q
AIG earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
AIG delivered strong reported growth in third-quarter 2026, with revenue up 17%, GAAP diluted EPS up 72% to $1.60, and operating cash flow substantially higher year over year. However, core underwriting was mixed:…
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AIG delivered strong reported growth in third-quarter 2026, with revenue up 17%, GAAP diluted EPS up 72% to $1.60, and operating cash flow substantially higher year over year. However, core underwriting was mixed: Global Personal improved materially, while North America Commercial and International Commercial weakened as catastrophe losses increased, resulting in a 29% decline in General Insurance underwriting income. Investment-market losses materially reduced equity, and adjusted EPS declined to $2.06 from $2.20, supporting a neutral rather than bullish assessment.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.6
What stood out
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Revenue and GAAP EPS improved sharply
Total revenue increased 17% year over year to $7.443 billion, while net income attributable to AIG common shareholders rose 63% to $844 million. GAAP diluted EPS increased to $1.60 from $0.93, although adjusted after-tax EPS was $2.06 versus $2.20.
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Premium growth despite catastrophe pressure
General Insurance net premiums written grew 7% to $6.651 billion, but underwriting income declined 29% to $564 million as catastrophe-related charges increased to $283 million from $100 million and the combined ratio worsened to 91.3 from 86.8.
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Global Personal delivered turnaround
Global Personal underwriting income increased 44% to $114 million, with the combined ratio improving to 93.2 from 95.2. Nine-month underwriting income was $397 million versus a $22 million loss in the prior-year period.
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Operating cash flow strengthened
Operating cash flow for the nine months was $4.562 billion, up from $2.678 billion. Cash and restricted cash ended at $1.787 billion versus $1.594 billion at the prior-year period end.
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Liquidity remained substantial
AIG completed a €1.125 billion debt issuance, equivalent to approximately $1.3 billion, on September 24, 2026. Parent liquidity sources were approximately $8.7 billion and the full $3.0 billion revolving facility remained available.
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Favorable reserve development continued
AIG recognized $436 million of favorable prior-year reserve development for the first nine months, versus $397 million in the prior-year period, primarily from U.S. workers’ compensation, property, financial lines and personal insurance.
What to watch
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Higher catastrophe losses pressured underwriting
Third-quarter catastrophe charges rose to $283 million from $100 million, while General Insurance’s combined ratio deteriorated 4.5 points to 91.3. North America Commercial catastrophe charges were $167 million, compared with $68 million in the prior year.
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Investment marks reduced capital
Net unrealized investment losses in shareholders’ equity increased to $3.8 billion at September 30, 2026 from $1.4 billion at September 30, 2025. Fixed-maturity investments with fair value below 80% of amortized cost increased to $2.0 billion from $1.4 billion at December 31, 2025.
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Leverage and capital sensitivity increased
Long-term debt increased to $10.256 billion from $9.035 billion at December 31, 2025, while AIG shareholders’ equity declined to $38.883 billion from $41.139 billion. The filing also identifies up to approximately $5 million of additional collateral or termination payments if specified debt-rating downgrades occur.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that AIG expects to access debt and preferred equity markets from time to time as needed and expects insurance companies to satisfy reasonably foreseeable liquidity requirements through operating cash flow and, if necessary, monetization of invested assets.
Earlier filings 4
10-Q · May 1, 2026
AIG reported mixed results for Q1 2026, with net income rising to $763 million from $698 million YoY, leading to a diluted EPS of $1.41, up from $1.16. Revenues declined slightly to $6.65 billion, missing estimates,…
10-K · February 12, 2026
AIG delivered improved profitability in 2025 with net income of $3,097 million and diluted EPS of $5.43, while total revenues declined modestly to $26,775 million. The company is executing capital redeployment (share…
10-Q · November 5, 2025
AIG reported Q3 2025 total revenues of $6,351 million, down 6% versus $6,751 million in Q3 2024, while net income attributable to AIG common shareholders rose to $519 million (up 13% from $459 million). Income from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.