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AIG pulling back on underpriced property business as commercial market softens - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers AIG pulling back on underpriced property business as commercial market softens by Gavin Souter Eric Andersen Financial Results , P/C Insurers AIG Aug 7, 2026 American International Group is shrinking parts of its property portfolio as commercial insurance pricing becomes increasingly competitive, even as the insurer continues to find profitable growth opportunities in casualty and other lines, new President and CEO Eric Andersen said Friday. The commercial insurance market has shifted from a prolonged period of broad-based price increases to “a more selective environment” as additional capacity has intensified competition, Mr. Andersen, who took over as CEO in June, said during the insurer’s earnings call. AIG has continued to reduce its Lexington excess and surplus property portfolio because pricing is softening, he said. Premium retention in Lexington property fell by 9% in the second quarter, reducing overall North America premium growth by more than 3%. “Where we see pricing that is not adequate, we are offering terms that reflect our view of the risks,” Mr. Andersen said. “As a result, we are retaining business where we can achieve acceptable terms while walking away from business that does not meet our underwriting standards.” North America retail casualty prices are rising in the double digits and excess casualty prices are up at a mid-teen percentage rate, he said. In international property, rates are declining more moderately than in North America, Mr. Andersen said. AIG reported second-quarter General Insurance underwriting income of $686 million, up 10% from a year earlier, while the combined ratio improved to 89.0% from 89.3%. General Insurance net premiums written increased 9% to $7.52 billion and gross premiums written rose 9% to $10.94 billion. North America commercial net premiums written increased 9% to $3.13 billion, while underwriting income rose 24% to $372 million. International commercial net premiums written increased 11% to $2.59 billion, but underwriting income declined 33% to $200 million, reflecting higher catastrophe losses, including $75 million related to the Middle East conflict, and continued rate pressure. Global Personal net premiums written increased 7% to $1.80 billion. Overall, AIG reported second-quarter net income of $948 million, down 17.1% from the prior-year period, primarily due to changes in the fair value of its former Corebridge investment and equity securities, partially offset by higher underwriting income. During the quarter, the insurer completed its exit from Corebridge Financial by selling its remaining stake for about $710 million. Executives also said AIG remains on track to reduce its General Insurance expense ratio below 30% for the full year 2027. Chief Financial Officer Keith Walsh said the trailing 12-month expense ratio improved to 30.7% as of June 30, down from 31.1% at year-end 2025, reflecting operating leverage from premium growth and continued expense discipline. 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