AIG earnings analysis
What we found in AIG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AIG delivered flat second-quarter revenue of $7,085 million and reported diluted EPS of $1.78, with EPS improving sequentially but declining 10% year over year. Underwriting trends were constructive: General Insurance underwriting income rose 10% to $686 million, led by North America Commercial and a sharp Global Personal improvement, while International Commercial weakened. The main offset was a 23% decline in net investment income to $1,127 million and continued realized investment losses. Liquidity was supported by $1,871 million of six-month operating cash flow and approximately $7.4 billion of AIG Parent liquidity sources, but no numeric earnings or revenue guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sequential EPS Rebound
- Second-quarter revenue was $7,085 million, essentially flat versus $7,091 million a year ago and up from $6,650 million in the first quarter. Reported diluted EPS was $1.78, down from $1.98 year over year but up from $1.41 sequentially.
- Underwriting Profitability Improved
- General Insurance underwriting income increased 10% year over year to $686 million, with the combined ratio improving to 89.0 from 89.3. Six-month underwriting income rose 68% to $1,460 million, supported by a 4.5-point improvement in the combined ratio to 88.1.
- North America Commercial Strength
- North America Commercial underwriting income rose 24% to $372 million and its combined ratio improved 1.9 points to 84.0. Net premiums written increased 9% to $3,125 million, driven by strategic transactions, organic growth, Casualty and Financial Lines.
- Global Personal Turnaround
- Global Personal underwriting income increased to $114 million from $25 million, while its combined ratio improved 5.6 points to 92.9. Management attributed the improvement to a 2.7-point reduction in the adjusted accident-year loss ratio and lower catastrophe losses.
- Stronger Operating Cash Flow
- Operating cash flow increased to $1,871 million from $1,335 million in the prior-year six-month period. Financing cash use was $1,719 million, including $1,153 million of share repurchases and $504 million of dividends.
- Portfolio Repositioning Completed
- AIG completed its exit from Corebridge, receiving approximately $710 million in May after receiving $750 million in February. It also completed investments of $2.1 billion for a 35% Convex interest and $642 million for a 9.9% Onex stake.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Investment Income Volatility
- Net investment income declined 23% year over year to $1,127 million in the quarter, primarily because of lower Corebridge and equity-security valuation effects. Net realized losses were $265 million, compared with $258 million in the prior year.
- International Underwriting Pressure
- International Commercial underwriting income fell 33% to $200 million, while its combined ratio worsened 5.4 points to 91.3. Management cited higher catastrophe losses, a 1.0-point increase in the adjusted accident-year loss ratio and adverse prior-year development.
- Unrealized Investment Losses
- AIG held $1.5 billion of fixed-maturity investments whose fair value was below 80% of amortized cost, up from $1.4 billion at December 31, 2025. The portfolio also included $35.8 billion of securities in an unrealized-loss position without an allowance for credit loss.
- Reinsurance Counterparty Exposure
- The company reported $41.6 billion of reinsurance recoverables, including approximately 15% classified as non-investment grade and 2% unrated. The allowance for reinsurance credit losses and disputes ended at $296 million, up from $276 million a year earlier.
- Commercial Real Estate Credit Risk
- Commercial mortgage loans included $44 million of balances more than 90 days delinquent or in foreclosure, and the allowance for credit losses was $78 million. The portfolio’s weighted-average loan-to-value ratio improved to 65% from 71%, but commercial real-estate exposure remains material.
- Technology and Cyber Risk
- The filing identifies AI implementation and competitors’ AI initiatives as a risk, alongside cybersecurity and data-security risks. AIG reported $327 million of collateral posted to third parties for derivatives and derivative-related net liabilities of $111 million at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.78
- Operating margin
- 17.8%
- Segment
- North America Commercial: net premiums written $3,125 million; underwriting income $372 million, up 24% year over year.
- Segment
- International Commercial: net premiums written $2,588 million; underwriting income $200 million, down 33% year over year.
- Segment
- Global Personal: net premiums written $1,803 million; underwriting income $114 million, up 356% year over year.
What they said about what is next.
No numeric revenue or EPS guidance was provided. Management said AIG expects to access debt and preferred equity markets from time to time as needed and expects insurance companies to satisfy reasonably foreseeable liquidity requirements through operating cash flow and, when necessary, monetization of invested assets.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 1, 2026
- AIG reported mixed results for Q1 2026, with net income rising to $763 million from $698 million YoY, leading to a diluted EPS of $1.41, up from $1.16. Revenues declined slightly to $6.65 billion, missing estimates,…
- 10-K · February 12, 2026
- AIG delivered improved profitability in 2025 with net income of $3,097 million and diluted EPS of $5.43, while total revenues declined modestly to $26,775 million. The company is executing capital redeployment (share…
- 10-Q · November 5, 2025
- AIG reported Q3 2025 total revenues of $6,351 million, down 6% versus $6,751 million in Q3 2024, while net income attributable to AIG common shareholders rose to $519 million (up 13% from $459 million). Income from…
- 10-Q · May 2, 2025
- AIG reported total revenues of $6,783 million in Q1 2025 (vs. $6,763 million in Q1 2024) and diluted income per common share of $1.16 (diluted), with net income attributable to AIG common shareholders of $698 million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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