stockrowWhat it does
American International Group, or AIG, sells insurance to businesses and individuals. Founded in 1919 and headquartered in New York City, it is led by President and Chief Executive Officer Eric Andersen. AIG serves customers in more than 200 countries and jurisdictions through its own operations and licenses and through network partners.
AIG’s commercial insurance covers risks faced by businesses, including damage to property, business interruption, liability claims and cyber risk. It also insures specialized activities such as marine transport, aviation and energy. For large corporate and multinational customers, AIG offers customized arrangements that can share risk with the customer.
Its personal insurance includes accident and supplemental health coverage, personal auto and homeowners policies in selected markets, and protection for devices and warranties. In the United States, its Private Client Select offering covers possessions and liabilities for high-net-worth individuals, including homes, yachts and art collections.
AIG organizes its insurance business into North America Commercial, International Commercial and Global Personal. The commercial businesses serve organizations ranging from small and medium-sized businesses to multinational companies. Global Personal serves individuals as well as employers, associations and other organizations buying accident and health coverage for groups.
AIG also offers data center customers insurance covering construction, marine cargo, cyber, property and casualty risks. Its Talbot business provides specialist coverage in areas including political violence and terrorism.
How it makes money
AIG earns revenue primarily from insurance premiums and income on investments. Customers pay premiums for insurance coverage; AIG incurs claims and the expenses of adjusting and settling them when covered losses occur. Its profitability depends on pricing and managing the risks it accepts, establishing loss reserves, managing investments and controlling expenses.
The three insurance segments sell different combinations of coverage. North America Commercial and International Commercial include property, casualty, financial lines and specialty products. Global Personal includes accident and health and personal lines. General Insurance also includes investment income related to the insurance operations. Other Operations includes income from the parent’s liquidity portfolio, corporate expenses and interest expense.
Policies generate new and renewal business. AIG measures sales using net premiums written, which adjust premiums for reinsurance assumed and ceded. Net premiums earned are the revenue for covering risk during a period. AIG buys reinsurance, paying another insurer to take on part of the liability under its policies, to manage exposures and capital.
Investment income provides a second source of revenue. Interest rates and the allocation of assets affect that income, while changes in the value of investments can affect the balance sheet. AIG seeks to match assets and liabilities by currency and uses derivatives principally to hedge exposures including interest rates and currencies.
In the third quarter of 2026, underwriting income was $564 million and net investment income on an adjusted pretax income basis was $1.1 billion. The calendar-year combined ratio was 91.3%; that ratio adds claims and expense ratios for the period. The third-quarter figure for net investment income excludes Corebridge Financial dividends following the complete sale of AIG’s holdings.
Customers and how it sells
AIG serves individuals, small and medium-sized businesses and multinational corporations. Its customers buy coverage directly suited to their risks, from homeowners and personal accident policies to commercial property, liability and specialty insurance. Employers, associations and other organizations also buy group accident and business travel products.
AIG reaches customers through brokers, agents, advisors, marketplaces and other distributors. Its international coverage also relies on network partners, alongside AIG’s own operations, licenses and authorizations. AIG serves nearly all S&P 500 companies and seeks to sell more accident and health coverage to existing commercial clients.
In FY2025, international revenue was $14.1 billion, or 52.6% of revenue. North America revenue was $12.7 billion, or 47.4%. AIG serves customers in more than 200 countries and jurisdictions; its employees were based in approximately 45 countries at December 31, 2025.
AIG’s geographic activities include personal and commercial insurance in Japan and operations in Latin America, including Brazil and Mexico. It has completed the acquisition of Everest Colombia and announced an agreement to acquire Everest Chile, subject to regulatory approval. In international casualty, AIG is reducing exposure in the UK and much of Asia Pacific because competition is pressuring prices, while pursuing opportunities in Japan and certain European countries.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| International | $14.1 billion | 52.6% | −1.01% |
| North America | $12.7 billion | 47.4% | −2.55% |
Suppliers and costs
AIG’s expenses include insurance losses and loss-adjustment expenses, commissions, other costs of selling and servicing products, interest expense and general operating expenses. Loss-adjustment expenses include legal fees, adjusters’ fees and the portion of general expenses allocated to settling claims. Acquisition costs include commissions, premium taxes, direct marketing and certain sales-support costs.
AIG purchases reinsurance to limit its exposure to events and individual policies. Its subsidiaries generally write risks on a gross basis and transfer a portion to reinsurers when exposure exceeds the level they want to retain. Clients, agents or regulations can also require AIG to transfer risks to specified reinsurance entities. Reinsurance protects against losses but exposes AIG to the possibility that a reinsurer cannot or will not pay.
The company also relies on third parties for business and administrative services and uses external catastrophe models to assess potential losses. At December 31, 2025, it had approximately 22,100 employees. In the third quarter of 2026, AIG’s expense ratio was 30.6%. AIG expects its full-year 2026 expense ratio to be approximately 30.5%, subject to market conditions, and expects to reduce the general insurance expense ratio below 30% for full-year 2027.
- Revenue$26.8B
- Cost of revenue−$19.2B
- Selling, general and administrative−$3.4B
- Other operating costs−$396.0M
- Operating income$3.8B
Competitive position
AIG competes with global, national and local insurers, reinsurers and underwriting syndicates. Competition varies by market and product and takes place through the risks insurers accept, pricing, service, and policy terms and conditions. No specific competing company is named in the available business descriptions.
AIG distributes coverage through brokers, agents, advisors and other intermediaries. It uses its international operations, licenses and network partners to serve clients across jurisdictions. Its commercial offerings range from property and casualty to financial lines and specialty insurance, while its personal offerings include accident and health coverage. AIG also uses underwriting and claims tools to support employees’ work.
Our reading: AIG’s geographic reach and range of products are meaningful competitive assets because they let it serve multinational customers and address several risks within one relationship. Our reading: Distribution relationships are another source of strength, although they do not remove price competition or guarantee that brokers will place business with AIG.
Competition has intensified in Lexington’s North American property business and increasingly in casualty, with new entrants and excess capacity. AIG is shifting its Lexington growth toward middle-market and smaller businesses while reducing participation in large property and casualty accounts. In energy insurance, AIG says loss activity and inflation are raising costs while new capacity is pushing overall rates lower.
Our reading: Underwriting and claims capabilities can help AIG select and service risks, but their advantage is constrained when competitors offer prices or terms that AIG considers inadequate.
Growth opportunities
AIG plans to grow by expanding product capabilities, deepening distribution relationships and broadening its geographic presence. It is also open to acquisitions that enhance earnings potential. In the third quarter of 2026, net premiums written increased 8% from the prior-year quarter; international commercial premiums increased 13% and global personal premiums increased 9%.
The company is expanding its international property portfolio and pursuing international casualty opportunities in Japan and certain European countries. It is reducing international casualty exposure in the UK and much of Asia Pacific, where competition is pressuring prices. In North America, it is directing Lexington toward smaller accounts while reducing participation in large accounts facing pricing pressure.
AIG is also seeking to deepen existing customer relationships. It uses its commercial and multinational business to reach accident and health customers, and it offers several lines of coverage to data centers. Construction is a growing part of its global specialty business; marine growth has also been driven in part by marine war premiums.
In Latin America, AIG has completed the Everest Colombia acquisition and announced an agreement to acquire Everest Chile, subject to regulatory approval. It expects the Chile transaction to close in the first half of 2027.
AIG has withdrawn its net-premiums-written growth expectation amid pressure in parts of the market. It says it will remain selective where pricing and terms do not adequately reflect risk. AIG is also expanding the use of underwriting and claims technology to improve decisions and productivity.
- $52.2BFY2021
- $30.0BFY2022
- $27.9BFY2023
- $27.3BFY2024
- $26.8BFY2025
Structural risks
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Claims and reserves: The amount and timing of insurance claims are difficult to predict. Claims may exceed the reserves AIG establishes for unpaid losses and loss-adjustment expenses. Premiums may also prove inadequate when actual losses differ from estimates used in pricing.
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Catastrophes and reinsurance: Natural disasters, man-made catastrophes and pandemics can generate multiple losses across business lines. AIG buys reinsurance to limit losses, but reinsurers may be unable or unwilling to pay, or coverage may not respond as anticipated.
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Investments and markets: AIG’s investment portfolio is concentrated in certain economic segments and is exposed to changes in market conditions. Interest-rate movements can affect investment income, financing costs and the relationship between the duration of assets and liabilities.
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Parent liquidity and regulation: AIG’s parent depends on subsidiaries for funds, while regulators restrict or may require approval for some subsidiary dividends. Changes in insurance laws and regulations may affect operations, increase capital requirements or reduce profitability.
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Operations and technology: Risk-management procedures may fail to identify or anticipate exposures. AIG relies on technology, data and third-party service providers; disruptions, security events or failures by providers could impede operations, increase costs or affect its ability to serve customers and meet obligations.
Bottom line
Our reading
Our reading: AIG is a global insurer whose business rests on accepting and pricing diverse risks, maintaining distribution relationships and earning income from its investment portfolio (item1, item7). Its international reach and product range give it room to redirect business as conditions change, but competition can also require it to pull back from markets where prices weaken (item1, call_prepared). The central exposures are uncertain claims, catastrophes, investment markets and restrictions on moving subsidiary funds to the parent (item1a, item7).