The company's adjusted income climbed 7% from a year earlier to US$798mil, or US$1.23 a share. — Reuters
NEW YORK: American International Group (AIG) Inc reported a higher third quarter profit that beat Wall Street predictions, driven by higher net investment income.
Adjusted income climbed 7% from a year earlier to US$798mil, or US$1.23 a share, the New York-based insurer said on Monday in a statement.
That yield topped the US$1.10 average estimate of analysts in a Bloomberg survey.
Net investment income jumped 14% to US$973mil, boosted by alternative investments, equity and fixed maturity securities, as well as dividends from Corebridge Financial Inc, the life and retirement business that AIG spun off in 2022.
Adjusted pre-tax earnings at the General Insurance unit slid 5% to US$1.2bil, partly because of weaker underwriting performance.
AIG’s underwriting income dropped 21% from last year’s third quarter to US$437mil.
The unit’s combined ratio stood at 92.6%, meaning it pays out 92.6 US cents on each dollar of premium it receives. That’s 2.4 percentage points more than a year earlier.
Underwriting performance deteriorated at AIG’s commercial lines business in North America, with the unit’s combined ratio jumping 7.5 percentage points to 95.5%.
Catastrophes charges stood at US$417mil in the three months through September, 78% of which stemmed from the firm’s North America business.
Shares of AIG have climbed 13% this year, trailing the 23% gain for the 72-company S&P 500 Financials Index.
On its website, the American multinational finance and insurance company said it has operations in more than 190 countries and territories, and that it’s a leading global insurance organisation providing “a wide range of property casualty insurance and other financial services”. — Bloomberg
