AIG · American International Group, Inc.

Underwriting Performance

Q1 2026 reflected continued progress in underwriting discipline. Revenue decreased 2.0% year-over-year to $6.7B, a result aligned with strategic portfolio optimization and adjustments to reinsurance programs — not indicative of underlying demand weakness. Net income rose 9.3% to $763.0M, and diluted EPS increased 21.6% to $1.41. These improvements were driven by favorable underwriting outcomes, including lower catastrophe losses and net favorable prior year reserve development, as noted in the business context. The loss ratio improved by 0.4 points, primarily from reduced catastrophe exposure, though partially offset by higher accident year loss ratio, as adjusted, due to shifts in business mix.

Expense Ratio Dynamics

Expense ratio behavior varied meaningfully across segments, underscoring the impact of regional operational execution and business mix. In North America Commercial, the expense ratio increased by 0.3 points: a lower acquisition ratio (0.4 points) — driven by changes in business mix — was more than offset by a higher general operating expense ratio (0.7 points). Conversely, International Commercial saw a 0.5-point improvement, as a mix-driven increase in the acquisition ratio (0.1 points) was more than offset by a 0.6-point reduction in the general operating expense ratio. These divergences highlight how localized cost management and product composition influence consolidated metrics.

Liquidity and Capital Management

Operating cash flow turned strongly positive at $155M in Q1 2026, reversing a $56M outflow in Q1 2025. This shift signals improved claims timing and greater working capital discipline across insurance operations. AIG’s investment strategy continues to prioritize growth of surplus, maintenance of sufficient liquidity for unanticipated claims, and preservation of capital — objectives that directly support its ability to meet obligations under financial covenants, including those tied to its credit facilities. As stated in the filing, AIG Parent’s primary uses of liquidity are debt service, capital and liability management, operating expenses, and dividends on common stock. Future share repurchases — if any — will depend on market conditions, business and strategic plans, financial condition, results of operations, liquidity, and other factors, with no commitment implied.