VALUATION HIGHLIGHTS

1. General Insurance constitutes 100% of the Trefis price estimate for AIG's stock.

WHAT HAS CHANGED?

Latest Earnings: Q2 FY'26

AIG reported strong second-quarter FY'26 results, with total revenue reaching $7.5 billion, beating consensus estimates of $7.25 billion. General Insurance net premiums written grew 9% year-over-year to $7.52 billion, driven by balanced top-line expansion across commercial and personal lines. Adjusted after-tax income came in at $2.00 per diluted share, topping analyst expectations of $1.93 and rising from $1.81 in the prior-year period, supported by robust General Insurance underwriting income of $686 million and effective catastrophe risk management.

Note: AIG's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.

Portfolio Refinement and Shareholder Return Acceleration

AIG continues to optimize its business mix post-Corebridge separation while maintaining strict capital allocation discipline. The primary driver of recent strategic execution centers on returning excess capital to shareholders through sustained stock repurchases and common dividend payouts, alongside expanding specialized underwriting capabilities in high-net-worth and non-admitted commercial lines.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of AIG's value that present opportunities for upside or downside to the current Trefis price estimate:

General Insurance

• Underwriting Profitability and Combined Ratio: Disciplined pricing and risk selection helped maintain a solid General Insurance combined ratio of 89.0%. Continued margin expansion in global commercial lines presents potential upside to valuation targets.


• Catastrophe Loss Volatility: Total catastrophe charges reached $210 million in Q2 FY'26. While this was below consensus expectations, severe global weather events or geopolitical disruptions remain key downside risks to underwriting performance.

For additional details, select a division from the interactive Trefis split for AIG at the top of the page.

BUSINESS SUMMARY

American International Group (AIG) is a leading global property and casualty insurance organization offering commercial, institutional, and individual insurance products across global markets.

SOURCES OF VALUE

General Insurance forms the core foundation of enterprise value following the strategic separation of life and retirement assets.

Commercial Lines Global Footprint

AIG maintains a market-leading commercial insurance position globally, supported by multinational capacity, specialized risk underwriting expertise, and strong retention rates.

Capital Management and Balance Sheet Strength

Substantial parent liquidity and reduced balance sheet complexity allow continuous share repurchases, debt management, and direct reinvestment into high-margin property and casualty lines.

KEY TRENDS

Commercial Property and Casualty Rate Hardening

Primary commercial insurance lines continue to benefit from positive rate momentum across global markets, allowing carriers to expand underwriting income and outpace loss cost inflation.

Transition to Pure-Play Property and Casualty Carrier

Following the separation of Corebridge Financial, management continues to streamline operations, lower operating expense ratios, and focus fully on General Insurance underwriting efficiency.