Key facts
- AIG's adjusted after-tax income was $2.06 per diluted share, beating LSEG estimates of $1.89.
- General insurance net premiums written rose 7% to $6.65 billion in the third quarter.
- Net investment income jumped 42.5% to $1.1 billion, helped by fixed-maturity securities income.
- General insurance underwriting income fell 29% to $564 million.
- Catastrophe-related charges were $283 million, up from $100 million a year earlier.
- The general insurance combined ratio rose to 91.3% from 86.8% a year earlier.
AIG reported third-quarter adjusted after-tax income of $2.06 per diluted share for the three months ended September 30, beating Wall Street expectations of $1.89 compiled by LSEG, Reuters reported on November 3. The New York-based insurer's general insurance net premiums written rose 7% to $6.65 billion, helped by growth in commercial and personal insurance.
Net investment income jumped 42.5% to $1.1 billion, driven by changes in the value of AIG's investments and higher income from fixed-maturity securities. General insurance underwriting income, however, fell 29% to $564 million.
Catastrophe-related charges totaled $283 million in the quarter, compared with $100 million a year earlier, driven by severe convective storms in North America. The general insurance combined ratio, a measure of underwriting performance, came in at 91.3% versus 86.8% a year earlier, reflecting higher catastrophe losses and lower favorable prior-year development. A ratio below 100 signifies the insurer earned more from premiums than it paid out in claims.
CEO Eric Andersen said underwriting remained strong despite a more challenging market environment and that the company remains on track to meet financial objectives outlined at its investor day on broad-based growth in premiums.