AIG Targets About a 30.5% Expense Ratio for 2026 and Plans About $2.2 Billion in Buybacks

American International Group plans about $2.2 billion in share repurchases and targets about a 30.5% expense ratio for 2026, setting out capital-return and operating goals in its third-quarter update.

AIG expects the ratio to fall below 30% in 2027. Adjusted after-tax income was $2.06 per diluted share in the third quarter.

The company also withdrew an earlier expectation for premium growth in the low to midteens, saying it would prioritize sustainable, profitable growth. Management cited expense-ratio improvement and investment income as ways to support profitability.

Management flagged excess capacity and competition, elevated loss activity and energy inflation, persistent social inflation and litigation finance in casualty lines, and catastrophe volatility as risks.

AIG’s agreement to acquire Everest Group’s Chilean insurance subsidiary was announced alongside the completion of its purchase of Everest’s Colombian insurance business. AIG expects the Chile transaction to close in the first half of 2027.