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At the January 2026 reinsurance renewals, insurance giant AIG added further efficiency to its aggregate protection for the year, in a renewal that saw weighted average rate decreases of more than 15% for the company, CEO Peter Zaffino explained today.
Speaking just now during the AIG earnings call, Zaffino explained that his company saw the reinsurance renewal environment as favourable at 1/1.
Importantly he noted that, while pricing was favourable and sometimes also terms, reinsurance capital providers generally held firm on attachment points at January 1st.
Zaffino said that reinsurance capital had built up in the market after a relatively benign 2025 after the California wildfires.
“This dynamic drove a favourable renewal environment for insurers at January 1 as a general statement. Although reinsurers were prepared to compromise on pricing, they remain disciplined on attachment points at 1/1.
“Our long-term belief in holding firm on attachment points has proven to be advantageous for AIG. We’ve always said, once you give it up you don’t get it back, and that remains true today,” he explained.
Zaffino went on to say, “Turning to our January 1 renewal outcomes, AIG achieved enhanced terms and favourable pricing. We benefited significantly from the current environment, with more aggregate capacity available in the market, our consistent buying and attractive portfolio, and the exceptional relationships we’ve developed with our reinsurance partners.”
The AIG CEO said that “Our property catastrophe programme continues to improve.”
Going into more detail he highlighted that the, “weighted average risk adjusted rate decrease for AIG on property catastrophe is in excess of 15%, yielding substantial year-over-year savings.”
Adding that, “The return period of the attachments of our property catastrophe coverage is broadly lower across our geographies and businesses,” while, “Our exhaust limit is at a comparable level for all regions worldwide.”
Zaffino also noted that AIG was able to collapse its high-net-worth reinsurance placement into its North America occurrence layer of the tower at the renewals, for the 500 xs of 500 layer.
On the aggregate reinsurance side, here AIG has been adding incremental improvements as the market has allowed.
A year ago, AIG improved the terms of its aggregate catastrophe reinsurance protection and lowered the deductible for it in North America.
At the January 2026 renewal, AIG further enhanced this important aggregate catastrophe reinsurance cover.
“We achieved further efficiency in our aggregate protection, including a single maximum contributing loss rather than a separate one for each of the North America commercial and global personal portfolios,” Zaffino said.
That adjustment will align the loss contributions across AIG’s business, making the aggregate cover more predictable for the company as well and ensuring catastrophe losses are accounted for more equally under the terms of the protection.
He also commented on the casualty reinsurance renewals, saying that, “We’re in a reinsurance market that differentiates for quality and as a result, our treaties renewed at exceptional pricing and terms and conditions.”
Notably, AIG was able to incorporate the Everest commercial retail business into its treaty “at AIG pricing and terms without an increase in nominal cost,” Zaffino stated
Zaffino summed up, “Overall, I’m very pleased with our 1/1 renewals. Our approach to reinsurance continues to be an important component of our strategy to minimise volatility in our portfolio and positions AIG well for 2026.”
Read all of our reinsurance renewals news.
AIG secured further efficiency in aggregate protection at advantageous renewal: CEO Zaffino was published by: www.Artemis.bm
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