AIG reports strong Q2 2026 results, with adjusted EPS of $2, up 10% YoY, driven by underwriting gains and disciplined growth. Management highlighted a transition to a selective market, actively pulling back from competitive North American E&S property while growing casualty and international lines. They are on track to reduce the expense ratio below 30% by 2027 and maintain confidence in the reserve position. Q2 adjusted after-tax income per share of $2, +10% YoY; underwriting income $686M, +10% YoY.
AIG reports strong Q2 2026 results, with adjusted EPS of $2, up 10% YoY, driven by underwriting gains and disciplined growth. Management highlighted a transition to a selective market, actively pulling back from competitive North American E&S property while growing casualty and international lines. They are on track to reduce the expense ratio below 30% by 2027 and maintain confidence in the reserve position. Q2 adjusted after-tax income per share of $2, +10% YoY; underwriting income $686M, +10% YoY.
AIG reports strong Q2 2026 results, with adjusted EPS of $2, up 10% YoY, driven by underwriting gains and disciplined growth. Management highlighted a transition to a selective market, actively pulling back from competitive North American E&S property while growing casualty and…
Q2 adjusted after-tax income per share of $2, +10% YoY; underwriting income $686M, +10% YoY.
NPW growth of 9% in Q2; 13% in H1 2026, driven by market opportunities in casualty and global personal.
Demand across the portfolio is strong in select areas such as accident and health, high net worth, and casualty, with new business up 37% year-over-year. However, property demand is pressured by competitive capacity and rate declines, leading to disciplined contraction in…
Management discussed scaling AI across underwriting and claims, with tools like underwriting by AIG Assist and claims by AIG Assist improving productivity and enabling broker-level insights. They see AI as central to long-term value creation and are investing to scale these capabilities.
Demand across the portfolio is strong in select areas such as accident and health, high net worth, and casualty, with new business up 37% year-over-year. However, property demand is pressured by competitive capacity and rate declines, leading to disciplined contraction in certain lines.
No explicit capex discussion; management emphasized efficient use of balance sheet and reinsurance, with capital deployment focused on growth and shareholder returns.
Management expressed confidence in executing their strategy, highlighted strong results, and reiterated commitment to growth and profitability.
“This has resulted in a meaningful nine percentage point reduction in premium retention in Lexington property in the second quarter.”
“But right now we're not happy with what we see going on in the market in terms of pricing, which we don't believe is reflective of the loss activity or the underlying risks, actually.”
“As more submission data flows through underwriting by AIG Assist, we can analyze broker-level results to gain greater visibility into their performance and distribution trends.”
AIG is deliberately contracting its Lexington property E&S book by a massive 9 percentage points in retention due to 'excess capacity and competition', and views North American property rates as inadequate. — This is a significant, active reduction in risk exposure, suggesting the E&S property market is in a clear downcycle and hard market for buyers.
“During the second quarter, we announced an agreement to acquire Everest Insurance Operations in Columbia.”
… multinational programs, and bespoke risk solutions. AIG is one of the few insurers that can bring all of these capabilities to the table with the expertise to manage the complex scale and timetable these projects require, and we are demonstrating leadership in this area. Moving to our geographic presence, we are looking at opportunities to expand our reach in regions where we see attractive opportunities for disciplined growth. As an example, during the second quarter, we announced an agreement to acquire Everest Insurance Operations in Columbia. Upon closing, it will give AIG access to one of the largest and fastest developing insurance markets in Latin America, supporting our growth ambitions in the region. Beyond specific growth opportunities, Our ability to bring AIG's full capabilities to clients navigating changing conditions and fast moving risks is equally important. In the Middle East, where the conflict remains highly fluid, especially around the Strait of Hormuz, we have continued to provide advice, capacity, and support to clients operating in the region. This is where our global platform and the expertise of our underwriting and claims teams really …
AIG's final sale of its stake in Corbridge is a capital return event for AIG, but the relationship remains a legacy connection.
“In May, we sold approximately 25 million shares of Corbridge Common Stock for $710 million, which was the remainder of our holdings.”
… short-term investment income. Turning to capital management. We have a strong balance sheet and significant financial flexibility. Our capital management priorities remain focused on deploying capital to support profitable growth and delivering attractive long-term returns to shareholders. We maintained our strong financial position and ended the quarter with $9 billion of debt outstanding and a total debt to adjusted capital ratio of 17.6%. In May, we sold approximately 25 million shares of Corbridge Common Stock for $710 million, which was the remainder of our holdings. This sale marks the culmination of our five-year separation process and a significant milestone as we've transformed into a focused global property and casualty insurer. Book value per share at June 30, 2026 was $77.39, up 4% from the prior year quarter, reflecting growth in net income as well as the favorable impact of lower interest rates partially offset by capital return to shareholders through dividends and share repurchases. Adjusted tangible book value per share was $72.18, up 3% from the prior year quarter. In summary, we delivered a strong second quarter with excellent underwriting results that …
AIG believes global energy pricing is down 15% and does not reflect heightened Middle East conflict exposure, leading them to avoid the market despite leading franchise status. — Energy pricing is underpriced given the conflict risk, which could lead to a surge in claims in the energy and defense sectors.
Great. Thanks. Good morning. Back to the topic of growth and relative to the kind of the mid, maybe upper end range of the ROE goals that you set out at the Investor Day last year, which Eric, you mentioned on the call this morning. How big of a factor is the high single-digit to low double-digit Thank you for joining us.
… I won't repeat what you and Keith have already said, but I think it's worth just repeating, you know, we take a prudent approach, we know where we are in the cycle, and This isn't the first time any of us have experienced a market cycle, isn't it? We've been expecting it, we've been preparing for it, and we're managing it for sure. And Eric said a couple of times, you know, we have a really diverse portfolio across the globe and we're seeing different market dynamics and different risk attributes actually in different parts of the world. So, yeah, it's a competitive market for sure. But lots of good growth opportunities. So without repeating what's been said, I'll give you a couple of examples I think which are relevant. I mean, global specialty, which we talk about a lot. I mean, we're market leaders in all of those segments. And we've seen several years of significant rate increase and strong profit. That leadership means we can go after the business we want and at the same time remain disciplined about obtaining the right risk-adjusted returns to hit those targets we talk about. And we expect to continue to grow. But I'd also call out energy within that global specialty portfolio. It's strategically important to us. It's one of the strongest long-term underwriting franchises we've got. But right now we're not happy with what we see going on in the market in terms of pricing, which we don't believe is reflective of the loss activity or the underlying risks, actually. But we're not an index to the market. We've got a great leadership team, huge amounts of management data. So we're taking the right actions all the way through. But we're watching it carefully. And in the meantime, we pick our way through the best opportunities. and just give one more flip to probably the opposite end of the risk spectrum. Actually, we've talked about it a couple of times on the call. We talk about accident health a lot. So many ways it is the opposite of global specialty, high volume, low limit. We're recognized as a leader in A&H. We've been starting to show some really solid growth, which we expect to continue. We've got a global footprint in ANH, and we see good near and long-term opportunities in a lot of the countries we operate. We've got a great pipeline already delivering some notable wins, and we expect to see more. So two micro examples across a broad portfolio.
AIG is deliberately contracting its Lexington property E&S book by a massive 9 percentage points in retention due to 'excess capacity and competition', and views North American property rates as inadequate. — This is a significant, active reduction in risk exposure, suggesting the E&S property market is in a clear downcycle and hard market for buyers.
… to contract our Lexington property portfolio in targeted areas while selectively growing the parts of the property portfolio we believe will deliver the best risk-adjusted returns. Where we see pricing that is not adequate, we are offering terms that reflect our view of the risks. As a result, we are retaining business where we can achieve acceptable terms while walking away from business that does not meet our underwriting standards. This has resulted in a meaningful nine percentage point reduction in premium retention in Lexington property in the second quarter. The pricing environment, combined with our deliberate actions, have reduced overall growth in North America by over three percentage points. Our North America retail property portfolio has a different composition than our Lexington property portfolio. While the environment remains competitive, we continue to find targeted opportunities for growth including to our Everest Renewal Rights Transaction. In international property, rates are declining at a more moderate pace than in North America. This remains an attractive portfolio with opportunities in many countries for sustained profitable growth supported by …
AIG's AI underwriting tools are now analyzing broker-level performance, enabling it to pivot resources toward the most profitable relationships to improve efficiency. — This data-driven approach could lead to AIG shifting business away from less profitable brokers, impacting brokerage volumes and market share.
… As we have scaled underwriting by AIG Assist and claims by AIG Assist, our operational results remain strong and consistent. Where deployed, our underwriters are reviewing more submissions and generating quotes significantly faster, improving their productivity. Importantly, our AI capabilities also enable us to access valuable commercial insights, particularly in how we understand and engage with our broker partners. As more submission data flows through underwriting by AIG Assist, we can analyze broker-level results to gain greater visibility into their performance and distribution trends. including where we are seeing the most success. This information will enhance how we partner with brokers, provide a clearer view of the broader market ecosystem, and enable data-driven decisions that can create value across market cycles. We are pleased with the progress we are making and will continue to thoughtfully scale our AI capabilities across the company. Fourth, we will continue to maintain expense discipline while investing for growth. Our expense philosophy is focused on prioritizing resources in areas that directly serve clients and support sustainable growth. We are …