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AIG Beats Q1 Earnings Estimates on Robust Underwriting, Lower Expenses
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Key Takeaways
AIG Q1 EPS beat estimates, jumping 80% on strong underwriting and lower catastrophe losses.
American International net premiums rose 24%, led by Global Commercial and Personal segment growth.
AIG investment income fell 36%, hurt by Corebridge stake valuation and equity securities.
American International Group, Inc. (AIG - Free Report) reported first-quarter 2026 adjusted earnings per share of $2.11, which topped the Zacks Consensus Estimate of $1.90 per share. The bottom line surged 80.3% year over year.
Adjusted operating revenues advanced 5.4% year over year to $6.97 billion. The top line beat the consensus mark by 1.2%.
The strong quarterly results were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses and reduced total losses and expenses. However, the upside was partly offset by lower investment income.
American International Group, Inc. Price, Consensus and EPS Surprise
Net premiums written totaled $5.6 billion, reflecting 24% year-over-year growth, driven by 21% growth in Global Commercial and 11% growth in Global Personal.
Total net investment income declined 36% year over year to $712 million, which missed the consensus mark by 29.7%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities, partly offset by higher income from available-for-sale fixed maturity securities. AIG holds a 5.6% stake in Corebridge.
Total benefits, losses and expenses amounted to $5.7 billion, down 2.7% year over year, mainly due to lower losses and loss adjustment expenses incurred.
Adjusted return on equity improved 450 basis points year over year to 10.9%, reflecting enhanced profitability and capital efficiency.
Underwriting income for the General Insurance segment rose to $774 million, reflecting a more than threefold increase over the previous year. This result significantly outperformed the Zacks Consensus Estimate by 33.9%. The segment’s combined ratio improved 850 basis points to 87.3%, reflecting significantly stronger underwriting performance compared with the prior-year quarter.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment’s net premiums written increased 37% year over year to $1.6 billion in the first quarter. The uptick was driven by a combination of organic growth in high-priority areas, key renewals from the Everest Group partnership, and optimized reinsurance program changes.
Underwriting income surged 153% year over year to $327 million. This increase was mainly driven by lower catastrophe-related losses and higher favorable prior-year development. The combined ratio improved 840 basis points to 85.5%, reflecting significantly stronger underwriting performance year over year.
General Insurance – International Commercial
The segment reported net premiums written of $2.5 billion, up 21% year over year. The growth was mainly due to the Convex Group quota share, Everest renewals, and changes in reinsurance programs.
Underwriting income increased 16% year over year to $278 million in the quarter and beat the Zacks Consensus Estimate by 2.2%. The combined ratio improved 90 basis points to 87.3%. This was mainly due to lower catastrophe losses, reduced operating expenses, and favorable prior-year reserve development. This was partly offset by prior-year premiums.
General Insurance – Global Personal
Net premiums written totaled $1.5 billion, which improved 17% year over year. The increase was mainly driven by reinsurance program changes and growth in the U.S. High Net Worth and Accident and Health businesses.
Underwriting income rose to $169 million compared to a loss of $126 million last year. The combined ratio improved 1,850 basis points to 89.4%. This was driven by favorable prior-year reserve development and reduced catastrophe losses.
Other Operations
Net investment income and other fell 51% year over year to $54 million. This was mainly due to lower parent liquidity and reduced dividends from Corebridge, reflecting a smaller ownership stake. Interest expense rose 10% to $100 million, caused by new debt issued in 2025, partly offset by interest savings from debt repurchases.
Adjusted pre-tax loss widened 89% year over year to $125 million.
Financial Position of AIG (As of March 31, 2026)
AIG ended the first quarter with a cash balance of $1.5 billion compared with $1.3 billion at the end of 2025. Total assets were $161.5 billion, slightly higher than $161.3 billion at the end of 2025.
Long-term debt totaled $9 billion in the first quarter of 2026, which remained unchanged from year-end 2025. Total shareholders’ equity fell to $40.4 billion from $41.2 billion at year-end 2025.
Adjusted book value per share improved to $78.55 from $74.45 in the prior-year quarter.
AIG’s Capital Deployment Update
AIG returned capital to its shareholders through approximately $519 million in share repurchases and $241 million in dividends during the first quarter of 2026.
The company announced a cash dividend of 50 cents per common share, representing an 11% increase over the previous quarterly payout.
Companies belonging to the broader Finance space, such as Arch Capital Group Ltd. (ACGL - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Selective Insurance Group (SIGI - Free Report) , have also posted their quarterly results. Here’s how they have performed:
Arch Capital reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
ACGL’s operating revenues of $4.3 billion decreased 3.8% year over year due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s quarterly results benefited from higher net premiums earned and stronger underwriting income, partly offset by lower net investment income and higher expenses.
Selective Insurance reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
SIGI’s operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure matched our estimate.
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AIG Beats Q1 Earnings Estimates on Robust Underwriting, Lower Expenses
Key Takeaways
American International Group, Inc. (AIG - Free Report) reported first-quarter 2026 adjusted earnings per share of $2.11, which topped the Zacks Consensus Estimate of $1.90 per share. The bottom line surged 80.3% year over year.
Adjusted operating revenues advanced 5.4% year over year to $6.97 billion. The top line beat the consensus mark by 1.2%.
The strong quarterly results were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses and reduced total losses and expenses. However, the upside was partly offset by lower investment income.
American International Group, Inc. Price, Consensus and EPS Surprise
American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote
AIG’s Q1 Operational Update
Net premiums written totaled $5.6 billion, reflecting 24% year-over-year growth, driven by 21% growth in Global Commercial and 11% growth in Global Personal.
Total net investment income declined 36% year over year to $712 million, which missed the consensus mark by 29.7%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities, partly offset by higher income from available-for-sale fixed maturity securities. AIG holds a 5.6% stake in Corebridge.
Total benefits, losses and expenses amounted to $5.7 billion, down 2.7% year over year, mainly due to lower losses and loss adjustment expenses incurred.
Adjusted return on equity improved 450 basis points year over year to 10.9%, reflecting enhanced profitability and capital efficiency.
Underwriting income for the General Insurance segment rose to $774 million, reflecting a more than threefold increase over the previous year. This result significantly outperformed the Zacks Consensus Estimate by 33.9%. The segment’s combined ratio improved 850 basis points to 87.3%, reflecting significantly stronger underwriting performance compared with the prior-year quarter.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment’s net premiums written increased 37% year over year to $1.6 billion in the first quarter. The uptick was driven by a combination of organic growth in high-priority areas, key renewals from the Everest Group partnership, and optimized reinsurance program changes.
Underwriting income surged 153% year over year to $327 million. This increase was mainly driven by lower catastrophe-related losses and higher favorable prior-year development. The combined ratio improved 840 basis points to 85.5%, reflecting significantly stronger underwriting performance year over year.
General Insurance – International Commercial
The segment reported net premiums written of $2.5 billion, up 21% year over year. The growth was mainly due to the Convex Group quota share, Everest renewals, and changes in reinsurance programs.
Underwriting income increased 16% year over year to $278 million in the quarter and beat the Zacks Consensus Estimate by 2.2%. The combined ratio improved 90 basis points to 87.3%. This was mainly due to lower catastrophe losses, reduced operating expenses, and favorable prior-year reserve development. This was partly offset by prior-year premiums.
General Insurance – Global Personal
Net premiums written totaled $1.5 billion, which improved 17% year over year. The increase was mainly driven by reinsurance program changes and growth in the U.S. High Net Worth and Accident and Health businesses.
Underwriting income rose to $169 million compared to a loss of $126 million last year. The combined ratio improved 1,850 basis points to 89.4%. This was driven by favorable prior-year reserve development and reduced catastrophe losses.
Other Operations
Net investment income and other fell 51% year over year to $54 million. This was mainly due to lower parent liquidity and reduced dividends from Corebridge, reflecting a smaller ownership stake. Interest expense rose 10% to $100 million, caused by new debt issued in 2025, partly offset by interest savings from debt repurchases.
Adjusted pre-tax loss widened 89% year over year to $125 million.
Financial Position of AIG (As of March 31, 2026)
AIG ended the first quarter with a cash balance of $1.5 billion compared with $1.3 billion at the end of 2025. Total assets were $161.5 billion, slightly higher than $161.3 billion at the end of 2025.
Long-term debt totaled $9 billion in the first quarter of 2026, which remained unchanged from year-end 2025. Total shareholders’ equity fell to $40.4 billion from $41.2 billion at year-end 2025.
Adjusted book value per share improved to $78.55 from $74.45 in the prior-year quarter.
AIG’s Capital Deployment Update
AIG returned capital to its shareholders through approximately $519 million in share repurchases and $241 million in dividends during the first quarter of 2026.
The company announced a cash dividend of 50 cents per common share, representing an 11% increase over the previous quarterly payout.
American International’s Zacks Rank
AIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Companies belonging to the broader Finance space, such as Arch Capital Group Ltd. (ACGL - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Selective Insurance Group (SIGI - Free Report) , have also posted their quarterly results. Here’s how they have performed:
Arch Capital reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
ACGL’s operating revenues of $4.3 billion decreased 3.8% year over year due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s quarterly results benefited from higher net premiums earned and stronger underwriting income, partly offset by lower net investment income and higher expenses.
Selective Insurance reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
SIGI’s operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure matched our estimate.