AIG tops Q3 profit estimates as net premiums grow 7%

American International Group (AIG) said on Nov. 3 that third-quarter adjusted after-tax income was $1.1 billion, or $2.06 per diluted share, beating the $1.90 consensus estimate.

The adjusted figure compares with $2.20 per diluted share a year earlier, when adjusted after-tax income was $1.2 billion.

Shares were little changed in regular-session trading as of 9:43 a.m. ET on Nov. 4, from a regular-session close of $80.53.

AIG provides insurance solutions to businesses and individuals in more than 200 countries and jurisdictions.

Here's how the company did:

• Adjusted EPS: $2.06 vs. $2.20 a year earlier, and a $1.90 consensus estimate
• Net income per diluted share: $1.60 vs. $0.93 a year earlier
• Net income attributable to AIG common shareholders: $844 million vs. $519 million a year earlier
• Return on equity: 8.5% vs. 5.0% a year earlier

The company said the rise in net income was primarily due to changes in the fair value of its investments, along with higher General Insurance net investment income, higher earned premiums and lower net realized losses.

Underwriting and premiums

General Insurance net premiums written were $6.7 billion, up 7% from a year earlier on a reported basis and 8% on a constant dollar basis.

Growth came across Global Commercial and Global Personal Insurance. Excluding North America Property lines, net premiums written rose 10%.

Underwriting income fell 29% to $564 million from a year earlier. The company said higher catastrophe-related charges of $283 million drove the change, against $100 million in the prior-year quarter.

The combined ratio was 91.3%, compared with 86.8% a year earlier. The accident year combined ratio, as adjusted, was 88.4%, compared with 88.3%.

General Insurance net investment income was $1.0 billion, up 9% year-over-year.

“AIG delivered strong profitability and premium growth in the third quarter rounding out an outstanding first nine months of 2026,” said Eric Andersen, AIG President & Chief Executive Officer.

Net income has risen in each of the last three quarters, from $519.0 million in the third quarter of 2025 to $948.0 million in the second quarter of 2026, according to its SEC filings.

Capital returns

AIG returned $787 million to shareholders in the quarter. That included $527 million of share repurchases, representing about 7 million shares, and $260 million of dividends.

The board declared a quarterly cash dividend of 50 cents per share, payable Dec. 30, 2026 to shareholders of record at the close of business on Dec. 16, 2026.

Adjusted book value per share was $81.25, up 5% from a year earlier. Book value per share was $74.96, down 1%.

On Sept. 24, AIG issued €625 million of 4.250% notes due 2031 and €500 million of 4.750% notes due 2036, equivalent to about $1.3 billion in total.

The company will host a conference call on Nov. 4 at 8:30 a.m. ET, open to the public as a live webcast.