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AIG’s Q2 combined ratio holds at 89.0%, but international commercial lags
International commercial NPW rose 11% to $2.6 billion, yet underwriting income fell 33% as the segment combined ratio deteriorated to 91.3%.
American International Group posted a general insurance combined ratio of 89.0% in the second quarter of 2026, alongside a 9% rise in general insurance net premiums written to $7.5 billion, Insurance Business reported.
Underneath the headline, AIG said underwriting income rose 10% to $686 million, while the accident year combined ratio improved 30 basis points to 88.1%. But segment results diverged, with North America Commercial showing a combined ratio of 84.0% and underwriting income up 24% to $372 million.
AIG’s Global personal underwriting income surged to $114 million from $25 million a year earlier, but International commercial underwriting income fell 33% to $200 million. Even with NPW up 11% to $2.6 billion, International commercial’s combined ratio worsened 540 basis points to 91.3%, a gap the outlet said matters most for brokers placing cross-border risk.
Insurance Business attributed the International commercial pressure to two factors, geopolitical losses and weaker financial lines pricing. AIG recorded $75 million in net losses tied to the Middle East conflict in the quarter, total catastrophe-related charges in general insurance reached $210 million, or 3.4 loss ratio points, and Marsh’s Q2 Global Insurance Market Index showed a 3.0% global decline in financial and professional lines rates, with decreases outside the US.