AIG just reported a combined ratio of 89.0% and a 9% rise in general insurance net premiums written (NPW) to US$7.5 billion for the second quarter of 2026. On the surface, that looks like a carrier in good shape. The more useful read, if you're placing international commercial or financial lines risk, is in the segment breakdown.
That's where the picture gets complicated.
AIG's general insurance underwriting income rose 10% to US$686 million, and the accident year combined ratio, as adjusted (AYCR), improved 30 basis points to 88.1%. Those are solid numbers. But they are being carried by two segments.
North America Commercial posted a combined ratio of 84.0% and a 24% jump in underwriting income to US$372 million. Global personal saw underwriting income surge to US$114 million from US$25 million a year earlier.
International commercial moved in the opposite direction. NPW rose 11% to US$2.6 billion, but underwriting income fell 33% to US$200 million. The combined ratio deteriorated 540 basis points to 91.3%.
That is a meaningful gap between the headline and the underlying performance in the segment most relevant to brokers placing cross-border risk.
Chief executive Eric Andersen acknowledged the market shift directly. "Our strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment, where profitability and growth are increasingly dependent on line-specific dynamics," he said.
That selectivity is showing up in the numbers.
Two things are working against international commercial at the same time. The first is geopolitical losses. AIG absorbed US$75 million in net losses from the Middle East conflict in the quarter, and total catastrophe-related charges across general insurance reached US$210 million, or 3.4 loss ratio points, up from US$170 million and 2.9 points a year earlier.
The AYCR for the segment widened 230 basis points to 87.3%.
A Morningstar DBRS report from May 2026 found that Middle East conflict losses across the industry were concentrated in specialist lines: marine war risk, aviation war cover, political violence, and energy. Those sit squarely within AIG's international commercial book, which explains why the conflict hit this segment harder than the group headline suggests.
The second pressure point is financial lines pricing. Marsh's Q2 2026 Global Insurance Market Index recorded a 3% global decline in financial and professional lines rates, with every region outside the US posting decreases.
If you're placing financial lines internationally, your clients are getting lower rates. The carriers writing those risks are absorbing the margin compression.
For brokers with international commercial clients, AIG is still growing that book. But the underwriting result tells you the carrier is absorbing more than it is earning in the segment right now. Carriers in that position tend to get more selective about what they write, where they price it and which risks they renew without a conversation first.
On financial lines placements specifically, AIG's international commercial deterioration is happening in a market that is already broadly soft. That is not unique to AIG. It is the environment.
It is worth factoring into renewal conversations, particularly for clients with complex international exposures or Middle East-linked operations.
The rest of the AIG story is real. The group's adjusted after-tax income per diluted share rose 10% to US$2.00. AIG returned US$904 million to shareholders in the quarter through share repurchases and dividends, and completed its exit from the life and retirement business by selling its remaining Corebridge Financial stake for approximately US$710 million on May 7.
AIG is in sound financial shape. But for international brokers, the number to watch is that 91.3% international commercial combined ratio. It tells you where the carrier is feeling the squeeze, and where your renewal conversations are most likely to require more preparation than usual.
