(Reuters) – American International Group Inc beat first-quarter profit expectations on Wednesday, driven by growth in its general insurance as well as life and retirement divisions and lower catastrophe losses.
AIG, one of the world’s largest commercial insurers, said underwriting income at its general insurance arm rose 19% to $596 million in the quarter ended March and included total catastrophe-related charges of $106 million.
“General Insurance had another quarter of impressive commercial lines profitability, benefiting from continued strong underwriting performance and low levels of catastrophe losses as we continue to manage the volatility in our results,” said Peter Zaffino, Chairman and CEO of AIG. Are.”
Insurers have benefited from rising expectations of a soft landing and a still-tight labor market, which have revived spending on insurance policies.
AIG’s adjusted after-tax earnings, attributable to common shareholders, rose to $1.77 a share from $1.63 a year earlier. Analysts on average had expected $1.65, according to LSEG data.
AIG’s life and retirement unit saw premiums rise 7%, helped by higher sales in fixed index annuities and institutional markets.
The New York-based company’s total consolidated net investment income rose 11%, helped by higher income from fixed maturity securities and loan portfolios due to higher reinvestment rates.
Last month, peer insurance company Travelers Co. Inc. First-quarter profit missed estimates as deadly hurricanes in the United States exacerbated its devastating losses.
AIG’s general insurance casualty year combined ratio was 88.4%, compared to 88.7% a year earlier. The metric does not include disaster losses and a ratio below 100 indicates that the insurer earns more from premiums than it pays out in claims.
