Key facts
- AIG reported second-quarter adjusted profit of $2 per share, exceeding Wall Street expectations of $1.92.
- General insurance net premiums written increased 9% to $7.5 billion.
- Underwriting income grew 10% to $686 million.
- Total catastrophe-related charges amounted to $210 million.
- The adjusted general insurance accident year combined ratio improved to 88.1%.
Insurance giant AIG surpassed analysts' second-quarter profit estimates, driven by strong underwriting gains that helped offset an increase in catastrophe-related claims. The company reported that general insurance net premiums written rose 9% to $7.5 billion, while underwriting income climbed 10% to $686 million.
Total catastrophe-related charges for the quarter were $210 million, compared to $170 million in the prior year. The adjusted general insurance accident year combined ratio, a key measure of underwriting performance, improved by 30 basis points year-over-year to 88.1%. A ratio below 100 indicates that the insurer earned more from premiums than it paid out in claims.
AIG's after-tax adjusted profit increased 10% to $2 per share, comfortably beating Wall Street's expectation of $1.92 per share. The company also returned $904 million of capital to shareholders during the second quarter. Newly appointed CEO Eric Andersen stated that the strong results demonstrate the company's ability to perform well in the current market, which has shifted from broad positive pricing to a more selective environment.