AIG · 10-Q · 2026Q2 · Full report
Insurance Reserve Development
AMERICAN INTERNATIONAL GROUP, INC. · 2026-08-07 · Importance 49 · Surprise 32 · From source text
General Insurance net loss reserves increased to $41.4 billion at June 30, 2026 from $41.2 billion at December 31, 2025, while gross reserves declined to $65.7 billion from $66.5 billion. AIG recognized $325 million of favorable prior-year reserve development in the first six months of 2026, led by U.S. Workers’ Compensation, U.S. Property and Special Risks, and U.S. Financial Lines within North America Commercial. International Commercial results included favorable development in Energy and Cargo, partly offset by adverse development in UK/Europe Property and Special Risks from prior-year catastrophes. Global Personal benefited from favorable development in U.S. Personal Insurance related to prior-year catastrophes.
Key facts
- Liability for unpaid losses and loss adjustment expenses: $69,852 million as of June 30, 2026 and $70,666 million as of December 31, 2025. source
- Liability for unpaid loss and loss adjustment expenses, end of period: Net liability $41,994 and $41,888, Reinsurance recoverable $27,858 and $27,866, Total $69,852 and $69,754 (shown for the periods presented). source
- Prior year (favorable) unfavorable development totaled $(325) million for the six months ended June 30, 2026 and $(192) million for the six months ended June 30, 2025. source
- Net Loss Reserves – Total General Insurance net loss reserves: $41,386 million at June 30, 2026 and $41,210 million at December 31, 2025. source
- Total gross loss reserves: $69,852 million at June 30, 2026 and $70,666 million at December 31, 2025. source
- Liability for unpaid loss and loss adjustment expenses, beginning of period: $69,963 (three months ended June 30, 2026), $68,896 (three months ended June 30, 2025), $70,666 (six months ended June 30, 2026), $69,168 (six months ended June 30, 2025). source
- Net liability for unpaid loss and loss adjustment expenses, beginning of period: $41,765 (three months ended June 30, 2026), $41,097 (three months ended June 30, 2025), $41,795 (six months ended June 30, 2026), $40,142 (six months ended June 30, 2025). source
- Losses and loss adjustment expenses incurred (three months ended June 30, 2026): $3,584 million and (three months ended June 30, 2025): $3,493 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +4.6% | Prior year (favorable) unfavorable development totaled $(325) million for the six months ended June 30, 2026 and $(192) million for the… |
| operating_income | negative | realized | -1.3% | Losses and loss adjustment expenses incurred (three months ended June 30, 2026): $3,584 million and (three months ended June 30, 2025):… |
| operating_income | positive | realized | +0.6% | Prior year (favorable) unfavorable development totaled $(172) million for the three months ended June 30, 2026 and $(128) million for the… |
| liability | positive | realized | +0.5% | Liability for unpaid losses and loss adjustment expenses: $69,852 million as of June 30, 2026 and $70,666 million as of December 31, 2025. |
| liability | negative | realized | -0.4% | Net liability for unpaid loss and loss adjustment expenses, beginning of period: $41,765 (three months ended June 30, 2026), $41,097… |
| liability | negative | realized | -0.1% | Net Loss Reserves – Total General Insurance net loss reserves: $41,386 million at June 30, 2026 and $41,210 million at December 31, 2025. |