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AIG Q3 Earnings Beat Estimates on Strong Premium Growth
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Key Takeaways
AIG's Q3 EPS of $2.06 beat estimates by 11.4%, while revenues rose 6.4% to $7.5 billion.
Net premiums written rose 6.8% to $6.65 billion, while investment income surged 42.5% to $1.1 billion.
AIG's underwriting income fell 28.9% to $564M as catastrophe losses pushed the combined ratio to 91.3%.
American International Group, Inc. (AIG - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $2.06, which topped the Zacks Consensus Estimate of $1.85 by 11.4%. However, the bottom line declined 6.4% year over year.
Adjusted operating revenues advanced 6.4% year over year to $7.5 billion. The top line beat the consensus mark by 0.8%.
The quarterly results benefited from higher earned premiums and investment income. However, increased catastrophe losses and reduced favorable prior-year reserve development weighed on underwriting profitability.
Net premiums earned increased 6.5% year over year and beat the consensus mark by 0.2%.
American International Group, Inc. Price, Consensus and EPS Surprise
Net premiums written totaled $6.65 billion, up 6.8% year over year, driven by growth across Global Commercial and Global Personal businesses.
Total net investment income surged 42.5% year over year to $1.1 billion and beat the consensus mark by 11.6%. The increase was primarily due to changes in the fair value of its investments and higher income from available-for-sale fixed-maturity securities.
Total benefits, losses and expenses increased 12.2% year over year to $6.32 billion, mainly due to higher losses and loss adjustment expenses incurred.
Adjusted return on equity declined 130 basis points year over year to 10.3%.
General Insurance underwriting income declined 28.9% year over year to $564 million. However, it beat the Zacks Consensus Estimate by 9.3%. The combined ratio deteriorated 450 basis points to 91.3%, reflecting higher catastrophe charges and reduced favorable prior-year development.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment’s net premiums written increased 1.9% year over year to $2.5 billion in the third quarter. The uptick was driven by Retail Casualty and Financial Lines.
Underwriting income plunged 56.5% year over year to $167 million. The decline was mainly attributable to higher catastrophe charges and lower favorable prior-year reserve development. The combined ratio deteriorated to 92.9% from 82.6% a year ago due to lower net favorable prior-year development and higher catastrophe-related charges.
General Insurance – International Commercial
Net premiums written increased 12.9% year over year to $2.39 billion, supported by broad-based geographic growth. The increase was consistent on a reported and constant-dollar basis.
Underwriting income declined 14.2% year over year to $283 million in the quarter but beat the Zacks Consensus Estimate by 31.2%. The combined ratio deteriorated 340 basis points to 88.3%. This was mainly due to higher catastrophe charges and reduced favorable prior-year development.
General Insurance – Global Personal
Net premiums written totaled $1.8 billion, which improved 6.1% year over year. The increase was mainly driven by growth in the high net worth and Accident & Health businesses.
Underwriting income rose to $114 million compared to $79 million a year ago. The combined ratio improved 200 basis points to 93.2%. This was driven by a lower accident-year loss ratio and higher favorable prior-year development.
Other Operations
Net investment income and other fell 37.5% year over year to $45 million. Interest expense rose 1% to $101 million.
Adjusted pre-tax loss widened 26% year over year to $141 million.
Financial Position of AIG (As of Sept. 30, 2026)
AIG exited the third quarter with cash of $1.72 billion, compared with $1.27 billion at the end of 2025. Total assets increased to $161.86 billion from $161.25 billion, while long-term debt rose to $10.26 billion from $9.04 billion.
Total shareholders' equity declined to $38.88 billion from $41.14 billion at year-end 2025. Adjusted book value per share increased 5.5% year over year to $81.25.
AIG’s Capital Deployment Update
The company returned $787 million to its shareholders through $527 million in share repurchases and $260 million in dividends during the quarter.
AIG also declared a quarterly cash dividend of 50 cents per share, payable on Dec. 30, 2026, to its shareholders of record as of Dec. 16.
Here are some stocks from the broader insurance space that have also reported their quarterly results: Everest Group, Ltd. (EG - Free Report) , Aon plc (AON - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) . Here's how they have performed:
Everest Group reported third-quarter 2026 operating income of $7.62 per share, which missed the Zacks Consensus Estimate of $9.38 by 18.8%. The bottom line increased 1.1% year over year. Total revenues of $3.71 billion declined 14% year over year. Higher catastrophe losses and adverse prior-year reserve development weighed on underwriting profitability. Lower earned premiums hurt EG’s top line despite strong investment income growth.
Aon reported third-quarter 2026 adjusted earnings of $3.36 per share, which surpassed the Zacks Consensus Estimate by 0.6%. The bottom line advanced 10% year over year. Total revenues of $4.1 billion grew 3% year over year. AON’s quarterly results were supported by strong organic revenue growth, healthy client retention, adjusted operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by lower revenues in Wealth Solutions, primarily due to divestitures.
The Hartford delivered third-quarter 2026 core earnings per share of $3.50, beating the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. Revenues came in at $5.4 billion, which improved 5.3% year over year. HIG’s quarterly results benefited from higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.
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AIG Q3 Earnings Beat Estimates on Strong Premium Growth
Key Takeaways
American International Group, Inc. (AIG - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $2.06, which topped the Zacks Consensus Estimate of $1.85 by 11.4%. However, the bottom line declined 6.4% year over year.
Adjusted operating revenues advanced 6.4% year over year to $7.5 billion. The top line beat the consensus mark by 0.8%.
The quarterly results benefited from higher earned premiums and investment income. However, increased catastrophe losses and reduced favorable prior-year reserve development weighed on underwriting profitability.
Net premiums earned increased 6.5% year over year and beat the consensus mark by 0.2%.
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 Q3 Operational Update
Net premiums written totaled $6.65 billion, up 6.8% year over year, driven by growth across Global Commercial and Global Personal businesses.
Total net investment income surged 42.5% year over year to $1.1 billion and beat the consensus mark by 11.6%. The increase was primarily due to changes in the fair value of its investments and higher income from available-for-sale fixed-maturity securities.
Total benefits, losses and expenses increased 12.2% year over year to $6.32 billion, mainly due to higher losses and loss adjustment expenses incurred.
Adjusted return on equity declined 130 basis points year over year to 10.3%.
General Insurance underwriting income declined 28.9% year over year to $564 million. However, it beat the Zacks Consensus Estimate by 9.3%. The combined ratio deteriorated 450 basis points to 91.3%, reflecting higher catastrophe charges and reduced favorable prior-year development.
Segmental Performances of AIG
General Insurance – North America Commercial
The segment’s net premiums written increased 1.9% year over year to $2.5 billion in the third quarter. The uptick was driven by Retail Casualty and Financial Lines.
Underwriting income plunged 56.5% year over year to $167 million. The decline was mainly attributable to higher catastrophe charges and lower favorable prior-year reserve development. The combined ratio deteriorated to 92.9% from 82.6% a year ago due to lower net favorable prior-year development and higher catastrophe-related charges.
General Insurance – International Commercial
Net premiums written increased 12.9% year over year to $2.39 billion, supported by broad-based geographic growth. The increase was consistent on a reported and constant-dollar basis.
Underwriting income declined 14.2% year over year to $283 million in the quarter but beat the Zacks Consensus Estimate by 31.2%. The combined ratio deteriorated 340 basis points to 88.3%. This was mainly due to higher catastrophe charges and reduced favorable prior-year development.
General Insurance – Global Personal
Net premiums written totaled $1.8 billion, which improved 6.1% year over year. The increase was mainly driven by growth in the high net worth and Accident & Health businesses.
Underwriting income rose to $114 million compared to $79 million a year ago. The combined ratio improved 200 basis points to 93.2%. This was driven by a lower accident-year loss ratio and higher favorable prior-year development.
Other Operations
Net investment income and other fell 37.5% year over year to $45 million. Interest expense rose 1% to $101 million.
Adjusted pre-tax loss widened 26% year over year to $141 million.
Financial Position of AIG (As of Sept. 30, 2026)
AIG exited the third quarter with cash of $1.72 billion, compared with $1.27 billion at the end of 2025. Total assets increased to $161.86 billion from $161.25 billion, while long-term debt rose to $10.26 billion from $9.04 billion.
Total shareholders' equity declined to $38.88 billion from $41.14 billion at year-end 2025. Adjusted book value per share increased 5.5% year over year to $81.25.
AIG’s Capital Deployment Update
The company returned $787 million to its shareholders through $527 million in share repurchases and $260 million in dividends during the quarter.
AIG also declared a quarterly cash dividend of 50 cents per share, payable on Dec. 30, 2026, to its shareholders of record as of Dec. 16.
AIG’s Zacks Rank
AIG currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Here are some stocks from the broader insurance space that have also reported their quarterly results: Everest Group, Ltd. (EG - Free Report) , Aon plc (AON - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) . Here's how they have performed:
Everest Group reported third-quarter 2026 operating income of $7.62 per share, which missed the Zacks Consensus Estimate of $9.38 by 18.8%. The bottom line increased 1.1% year over year. Total revenues of $3.71 billion declined 14% year over year. Higher catastrophe losses and adverse prior-year reserve development weighed on underwriting profitability. Lower earned premiums hurt EG’s top line despite strong investment income growth.
Aon reported third-quarter 2026 adjusted earnings of $3.36 per share, which surpassed the Zacks Consensus Estimate by 0.6%. The bottom line advanced 10% year over year. Total revenues of $4.1 billion grew 3% year over year. AON’s quarterly results were supported by strong organic revenue growth, healthy client retention, adjusted operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by lower revenues in Wealth Solutions, primarily due to divestitures.
The Hartford delivered third-quarter 2026 core earnings per share of $3.50, beating the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. Revenues came in at $5.4 billion, which improved 5.3% year over year. HIG’s quarterly results benefited from higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.