American International Group (AIG) reported General Insurance underwriting income of $564 million for the third quarter ended September 30, 2026, down from $686 million in the second quarter and $774 million in the first quarter.

The insurer said the third-quarter result was driven by higher earned premiums, strong accident-year underwriting and modest catastrophe losses. Catastrophe-related charges were $283 million, or 4.4 loss-ratio points, compared with $100 million, or 1.6 points, a year earlier, which the company attributed to severe convective storms in North America. Favorable prior-year development, net of reinsurance and prior-year premiums, was $91 million, down from $180 million in the year-ago quarter.

The General Insurance combined ratio was 91.3%, versus 89.0% in the second quarter and 87.3% in the first. The accident-year combined ratio, as adjusted, was 88.4%. The company said the calendar-year ratio primarily reflected higher catastrophe charges and lower favorable prior-year development, partially offset by a lower expense ratio. Accident-year combined ratio, ex-CAT, was 88.4%.

Net premiums written were $6.7 billion, up 7% year-over-year on a reported basis and 8% on a constant-dollar basis, after 9% growth in the second quarter and 24% reported (18% constant-dollar) growth in the first. Excluding North America Property lines, General Insurance NPW increased 10% from the year-ago quarter. Growth was concentrated in Global Commercial and Global Personal.

North America Commercial NPW was $2.5 billion, up 2% year-over-year; excluding North America Property lines it rose 6%. Underwriting income in that segment fell to $167 million and the combined ratio widened to 92.9%. The company said the combined-ratio move reflected a higher loss ratio, largely from lower net favorable prior-year development and higher catastrophe charges.

International Commercial NPW rose 13% year-over-year to $2.4 billion, with underwriting income of $283 million and a combined ratio of 88.3%. The accident-year combined ratio, as adjusted, was 85.8%.

Global Personal NPW was $1.8 billion, up 6% reported and 9% on a constant-dollar basis. Underwriting income increased 44% to $114 million and the combined ratio improved to 93.2% from 95.2% a year earlier. The company said the accident-year combined ratio, as adjusted, improved 190 basis points to 93.6%, reflecting a lower accident-year loss ratio and lower general operating expense, partially offset by a higher acquisition ratio.

Net income attributable to AIG common shareholders was $844 million, or $1.60 a share, compared with $519 million, or $0.93 a share, a year earlier. The company said the increase was primarily due to changes in the fair value of investments, higher General Insurance net investment income, higher earned premiums, strong accident-year underwriting, modestly increased catastrophe losses and lower net realized losses. Adjusted after-tax income was $1.1 billion, or $2.06 a share, compared with $1.2 billion, or $2.20 a share, a year earlier, reflecting lower underwriting income and lower Other Operations net investment income.

General Insurance net investment income was $1.0 billion, up 9% year-over-year. Total net investment income was $1.1 billion. Core operating return on equity was 11.1%, matching the second quarter after 12.2% in the first; GAAP return on equity was 8.5%. Adjusted book value per share was $81.25.

Other Operations net investment income and other was $45 million, compared with $72 million a year earlier, which had included $20 million of Corebridge Financial dividends. Adjusted pre-tax loss in Other Operations was $141 million.

AIG returned $787 million to shareholders in the third quarter through $527 million of share repurchases, about 7 million shares, and $260 million of dividends. On September 24 it issued €625 million of 4.250% notes due 2031 and €500 million of 4.750% notes due 2036, about $1.3 billion in the aggregate. At September 30, total debt to total capital was 20.8% and to adjusted capital 19.6%. The board declared a quarterly cash dividend of $0.50 a share, payable December 30, 2026.