AIG Q2 2026: Adjusted EPS of $2.00 Beats Estimates as Underwriting Income Rises 10%

American International Group (NYSE: AIG) reported Q2 2026 adjusted after-tax income per diluted share of $2.00, beating the $1.94 consensus estimate and marking a 10% increase from $1.81 in Q2 2025. General Insurance net premiums written rose 9% year-over-year to $7.5 billion, with underwriting income climbing 10% to $686 million.

Q2 2026 Results

• Adjusted EPS of $2.00 beat the consensus estimate of $1.94; GAAP net income per diluted share was $1.78, down 10.1% from $1.98 in Q2 2025
• General Insurance net premiums written of $7.5 billion, up 9% year-over-year on both a reported and constant-dollar basis, with growth across all three business segments
• Underwriting income of $686 million, up 10% year-over-year, with the combined ratio improving 30 basis points to 89.0% and the accident year combined ratio, as adjusted, improving 30 basis points to 88.1%
• GAAP net income of $948 million, down from $1.144 billion in Q2 2025, with the year-over-year decrease primarily attributable to changes in the fair value of AIG's investment in Corebridge Financial and equity securities
• Adjusted pre-tax income of $1.404 billion, up from $1.391 billion in the prior year quarter, driven by higher General Insurance adjusted pre-tax income of $1.546 billion versus $1.492 billion

What Drove the Results

Adjusted EPS of $2.00 beat the $1.94 consensus by approximately 3%, while GAAP EPS of $1.78 reflects a 10.1% decline from the prior year. The GAAP decline was driven by lower fair-value gains on AIG's investment in Corebridge Financial and equity securities rather than any deterioration in core insurance operations.

The underwriting segment was the primary engine of the quarter. General Insurance net investment income held flat year-over-year at $871 million, while underwriting income of $686 million grew 10%. The accident year loss ratio, as adjusted, improved to 57.3% from 57.4%, and the expense ratio tightened to 30.8% from 31.0%. Catastrophe-related charges totaled $210 million, or 3.4 loss ratio points, including $75 million of net losses related to the Middle East conflict, compared to $170 million in Q2 2025. Favorable prior year development of $145 million, primarily from U.S. Workers' Compensation and U.S. Property and Special Risks, partially offset by slight strengthening in U.S. Excess Casualty, contributed to the improved combined ratio.

Total net investment income on an APTI basis declined to $908 million from $955 million in the prior year quarter, reflecting lower net investment income in Other Operations, while General Insurance net investment income was flat.

On May 7, AIG sold its remaining interest in Corebridge Financial for aggregate proceeds of approximately $710 million. AIG also returned $904 million to shareholders during the quarter: $641 million via share repurchases representing approximately 8 million shares, and $263 million in dividends. Book value per share rose 4% year-over-year to $77.39, and adjusted tangible book value per share increased 3% to $72.18. The AIG board declared a quarterly dividend of $0.50 per share, payable September 30, 2026.

Wall Street View

Analyst consensus ahead of the print leaned constructive, and AIG's adjusted EPS beat with broad underwriting growth across all three business segments reinforces the case for the company's diversified global portfolio. Management reiterated confidence in meeting 2025 Investor Day financial objectives and described the market as transitioning from broad positive pricing to a more selective environment, where line-specific expertise is increasingly important to growth and profitability.

Investor Takeaway

AIG's Q2 results highlight a clean separation between GAAP optics and underlying insurance performance: the 10.1% GAAP EPS decline reflects Corebridge-related fair-value movements, while core underwriting profitability, measured by the 89.0% combined ratio and 10% growth in underwriting income, continued to improve year-over-year. With the Corebridge exit complete and capital return of $904 million in a single quarter, the company's financial profile is increasingly concentrated on General Insurance operations, making future quarters' underwriting metrics the critical variable for investors tracking execution against the Investor Day targets.