AIG’s international commercial business has recovered some of the margin it lost in the second quarter, and it is still writing more business.
International Commercial net premiums written rose 13% to US$2.4 billion in the third quarter, on both a reported and constant-dollar basis, supported by broad-based geographic growth, AIG said in its results on 3 November. The segment’s combined ratio was 88.3%, an improvement on the 91.3% it recorded in Q2. Its accident-year combined ratio, excluding catastrophes, improved to 85.8% from 86.0% in the prior year, driven by a lower general operating expense ratio.
The segment covers AIG’s commercial operations outside North America, across EMEA, the UK, Japan, Asia-Pacific, Latin America and China, as well as its Lloyd’s business Talbot and its Global Specialty book.
Year on year, margins are still weaker. The International Commercial combined ratio was 84.9% in Q3 2025. AIG attributed the deterioration to higher catastrophe-related charges - which rose to 3.5 loss ratio points from 0.8 - and lower net favourable prior-year development, partly offset by a lower expense ratio. Underwriting income fell 14% to US$283 million.
Most of the pressure across AIG’s General Insurance book came from the weather, measured against an unusually calm year-ago quarter. Catastrophe-related charges across the whole group totalled US$283 million, representing 4.4 loss ratio points, driven by severe convective storms in North America. AIG described the prior-year figure of US$100 million as extraordinarily low.
Reserve releases also shrank, with favourable prior-year development falling to US$91 million from US$180 million. Those two factors lifted the group combined ratio to 91.3% from 86.8%, though a slightly lower expense ratio - 30.6% from 30.9% - softened the blow.
Strip out catastrophes and reserve movements and the underlying business barely changed. The accident-year combined ratio, as adjusted, was 88.4% against 88.3% in the prior year, and accident-year underwriting income excluding catastrophes rose 6% to US$756 million.
The contrast with North America Commercial is the picture brokers placing across both markets need to understand. That segment had the weakest quarter of AIG’s four reporting segments.
Catastrophes added 7.1 points to the North America loss ratio, up from 3.1 a year earlier, while reserve releases fell sharply to 1.4 points from 5.9. The combined ratio rose to 92.9% from 82.6%, and underwriting income fell 57% to US$167 million. Even the underlying accident-year ratio worsened, to 87.2% from 85.4%, which AIG attributed mainly to changes in business mix.
Growth there was slower too, with net premiums written rising just 2% to US$2.5 billion. Retail casualty and financial lines drove those gains, partially offset by lower production in certain property lines. Excluding property, North America commercial premiums grew 6%.
Global Personal was the standout segment. Net premiums written grew 6%, or 9% in constant dollars, led by high-net-worth and accident and health business. Underwriting income jumped 44% to US$114 million and its combined ratio improved to 93.2% from 95.2%, reflecting lower underlying loss experience and favourable prior-year development, partially offset by higher catastrophe charges and acquisition costs.
Across General Insurance, net premiums written rose 7% to US$6.65 billion, or 8% on a constant-dollar basis and 10% excluding North America property.
Investment income also contributed positively. Within General Insurance, net investment income grew 9% to US$1.0 billion, driven by the core fixed-income portfolio. At the adjusted operating level, total net investment income rose to US$1.075 billion from US$1.024 billion.
“Despite a more challenging market environment, we maintained strong underwriting performance,” said Eric Andersen, AIG president and chief executive. “Growth was broad-based, driven by our Global Commercial and Global Personal Insurance businesses.”
Quarter-by-quarter results can obscure the broader trajectory. Over the first nine months of 2026, AIG delivered double-digit premium growth, exceeded US$2 billion in underwriting income, and improved the combined ratio 140 basis points to 89.2%. The accident-year combined ratio, as adjusted, improved 50 basis points to 87.7%. Adjusted after-tax income per diluted share rose 20.2% to US$6.18.
AIG returned US$787 million to shareholders in the quarter through US$527 million of share buybacks and US$260 million of dividends. The board declared a US$0.50 quarterly dividend payable on December 30.
For brokers placing international commercial, specialty or Lloyd’s business with AIG, the third quarter shows a carrier still growing outside North America and recovering margin after a weak Q2. The accident-year improvement in International Commercial - its underlying ratio actually improved slightly year on year - gives more confidence that the Q2 spike was weather-driven rather than a structural deterioration.
The divergence between International Commercial and North America Commercial is the analytical point worth bringing to renewal conversations. AIG’s willingness to cut North America property where pricing is thin, while maintaining 13% growth internationally, signals a carrier making deliberate portfolio choices rather than chasing volume. Andersen’s reference to a more challenging environment is context worth noting - the Q4 results will show how Hurricane Isaias, which made landfall in Florida in October, affects the next set of numbers.
