AIG Surpasses Q3 Profit Estimates
(Reuters) – American International Group (AIG) exceeded Wall Street profit expectations for the third quarter, driven by strong underwriting and higher investment returns.
Key Highlights
- Net Premiums Written: General insurance net premiums written rose 6% to $6.38 billion, excluding divestiture impacts.
- Combined Ratio: AIG's accident year combined ratio adjusted was 88.3%, up from 86.9% the previous year.
- Business Composition: 70% of AIG's operations are Commercial Lines, with new business up 9%, notably in retail casualty and Lexington excess & surplus lines.
- Investment Income: Net investment income increased by 14% to $973 million due to higher dividends from Corebridge and improved income from various securities.
- Catastrophe Losses: AIG suffered $417 million in catastrophe losses for the quarter; $324 million of that was in North America, largely due to windstorms and hailstorms.
CEO Remarks
CEO Peter Zaffino commented on the impressive performance amid increasing catastrophe challenges, noting the industry may see insured losses exceed $125 billion for 2023.
Financial Performance
AIG reported adjusted after-tax income of $1.23 per share for the three months ending September 30, up from $1.04 a year ago. Analysts expected approximately $1.10 per share. Shares fell 0.6% post-earnings release.
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