- Company name
- American International Group
- Sector
- Property and casualty insurance
- About
- American International Group, Inc. (AIG) is a global insurer based in New York. Its General Insurance business has three parts: North America Commercial, International Commercial and Global Personal. It sells commercial property, casualty, financial lines and specialty cover, and personal accident, health and high net worth cover. General Insurance had net premiums written of $6.7 billion in Q3 2026 and a combined ratio of 91.3%. AIG also has Other Operations, which holds its parent company's investments and costs. AIG sold its last shares of Corebridge Financial in May 2026. It had book value per share of $74.96 and adjusted book value per share of $81.25 at September 30, 2026. Eric Andersen is President and Chief Executive Officer. Peter Zaffino stepped down as Executive Chair on September 15, 2026, and John Rice became Chair. The shares trade on the New York Stock Exchange in US dollars.
- Thesis
- The market prices AIG as a commercial insurer whose profit depends on underwriting and on catastrophe losses, and these swing from quarter to quarter. In Q3 2026, AIG's adjusted after-tax income per share fell to $2.06 from $2.20, because catastrophe losses were higher and favorable reserve changes were lower. Over nine months, it rose to $6.18 from $5.14. Premiums grow, and AIG buys back many shares: it bought about $1.7 billion in nine months and has $2.1 billion left. Two changes add risk. Peter Zaffino, who led the company's turnaround, left the chair, and Jon Hancock, who runs General Insurance, retires at the end of 2026. For the price to hold, three things must be true. Core operating return on equity must stay near 11% or higher. The combined ratio must stay near 90% in a year with normal catastrophe losses. Buybacks must keep cutting the share count. The next tests are the Q4 2026 report in February 2027 and the January 2027 reinsurance renewals.
- Risks
- Catastrophe losses can be large. Catastrophe-related charges were $283 million in Q3 2026, or 4.4 points of the loss ratio, against $100 million a year earlier. A year of storms or other disasters would cut profit and book value.
Prices in commercial insurance may soften. AIG's North America Commercial premiums grew only 2% in Q3, and its combined ratio there rose to 92.9% from 82.6%. Lower prices with the same costs would hurt margins.
Leaders are changing. The Executive Chair left in September 2026, and the head of General Insurance retires at the end of 2026. A weaker handover could hurt underwriting discipline.
Reserves may prove too low. Favorable prior-year reserve changes were lower in Q3 2026. If past claims cost more than reserved, AIG would have to add reserves and book charges.
Investment income depends on interest rates and markets. Net investment income on an adjusted basis was $1,075 million in Q3 2026, and the fair value of investments can move book value.
- Balance sheet
- AIG had long-term debt of $10,256 million and total AIG shareholders' equity of $38,883 million at September 30, 2026, against $9,035 million and $41,139 million at December 31, 2025. The ratio of total debt to total capital was 20.8% and to total adjusted capital was 19.6%, and hybrid debt securities were 0.9% of total capital. In September 2026, AIG issued about $1.3 billion of euro notes due 2031 and 2036. Book value per share was $74.96, adjusted book value per share was $81.25 and adjusted tangible book value per share was $73.37. There were 518.4 million common shares at October 29, 2026, down from 538.2 million at the end of 2025. AIG returned $787 million to shareholders in Q3 2026, with $527 million of buybacks and $260 million of dividends. About $2.1 billion remained under the buyback authorization at October 29, 2026.
As of Sep 30, 2026.
- Checkpoints
- Nov 3, 2026: Q3 2026 results: underwriting and return on equity. Passed. Watch: A General Insurance combined ratio below 92% and core operating return on equity of 11% or more passes; worse results fail. Outcome: The combined ratio was 91.3% and core operating return on equity was 11.1%.
Feb 9, 2027 (estimate): Q4 2026 results and reinsurance renewals. Pending. Watch: A full-year core operating return on equity near 11% or higher and a combined ratio near 90% passes; weaker results or higher reinsurance costs fail.
- Recent events
- Nov 3, 2026: AIG reported Q3 2026 results. Adjusted after-tax income was $1.1 billion, or $2.06 per diluted share. General Insurance net premiums written rose 7% to $6.7 billion and the combined ratio was 91.3%. AIG returned $787 million to shareholders and declared a quarterly dividend of $0.50 per share.
Sep 24, 2026: AIG issued EUR 625 million of 4.250% notes due 2031 and EUR 500 million of 4.750% notes due 2036, about $1.3 billion in all.
Sep 16, 2026: AIG said that Jon Hancock, Chief Executive Officer of General Insurance, will retire on December 31, 2026 and become a Senior Advisor.
Sep 1, 2026: Peter Zaffino told the board that he will step down as Executive Chair on September 15, 2026 and become a Senior Advisor to the Chief Executive Officer. John Rice, the Lead Independent Director, became Chair.
May 7, 2026: AIG sold its remaining 25.5 million shares of Corebridge Financial at $27.90 per share, for about $710 million. This ended its stake. In February 2026, Corebridge had bought 24.7 million of its own shares from AIG for $750 million.