AIG Posts $686 Million Q2 Underwriting Profit Gain

News Desk: American International Group reported a solid lift in its core property and casualty operations for the second quarter of 2026. Underwriting income in the General Insurance segment climbed nearly 10 percent from the same period a year earlier, reaching $686 million. The figure comes directly from the company’s earnings release issued in early August.

Net premiums written across the segment rose 9 percent to $7.5 billion, with growth showing up in all three main pieces of the business. The overall combined ratio edged lower to 89.0 percent from 89.3 percent a year ago, a modest but meaningful improvement in underwriting profitability.

Catastrophe losses ran higher at $210 million, compared with $170 million in the second quarter of 2025. That total included $75 million in net losses tied to the ongoing conflict in the Middle East. On the positive side, favorable prior-year reserve development came in at $145 million, up from $112 million the previous year.

Results varied by line. North America Commercial delivered underwriting income of $372 million, a clear increase from $301 million a year earlier, with its combined ratio improving to 84.

Global Personal Insurance posted a sharp rebound, generating $114 million in underwriting income against just $25 million in the year-ago quarter. International Commercial, however, saw underwriting income fall 33 percent to $200 million even as premiums grew.

Company leaders described the quarter as another demonstration of disciplined underwriting in a market that has moved away from the broad rate increases of recent years. The accident-year combined ratio, adjusted for certain items, improved by 30 basis points to 88.1 percent.

First-half underwriting income for the segment more than doubled the year-earlier total, helped by stronger accident-year results and lower catastrophe costs earlier in 2026.

The numbers arrive as many insurers continue to navigate selective pricing and the lingering effects of large weather and geopolitical events. AIG’s ability to expand premiums while still posting higher underwriting profits suggests the company is finding pockets of opportunity even as competition intensifies in certain commercial lines.