Now Reading: AIG Beats Profit Estimates as Underwriting Income Rises 10%
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AIG Beats Profit Estimates as Underwriting Income Rises 10%
AIG’s second-quarter adjusted profit rose 10% to $2 per share, beating Wall Street’s $1.92 estimate, Reuters reported in Livemint. Strong underwriting helped offset higher catastrophe-related claims. The insurer’s general insurance net premiums…
The Story in Brief
AIG’s second-quarter adjusted profit rose 10% to $2 per share, beating Wall Street’s $1.92 estimate, Reuters reported in Livemint. Strong underwriting helped offset higher catastrophe-related claims. The insurer’s general insurance net premiums written increased 9% to $7.5 billion in the three months ended June 30, while underwriting income reached $686 million, up 10%.
AIG’s adjusted accident year combined ratio improved to 88.1% from a year earlier, indicating premiums exceeded claims and related costs. Catastrophe charges rose to $210 million from $170 million, including $75 million linked to the Middle East conflict. The company returned $904 million to shareholders during the quarter. CEO Eric Andersen said pricing had become more selective after an extended period of broad increases.
The Indian Opinion
The easy story is that insurers have beaten disaster risk, but one strong quarter proves little when catastrophe claims can jump after a single event. The opposite claim, that higher losses erase underwriting gains, is also too broad. AIG’s 88.1% combined ratio and rising premiums show a profitable quarter, while the $210 million catastrophe bill sets a clear check on future results. Investors should watch whether that ratio stays below 100 as claims costs change.
Source: livemint.com
This story was synthesised by AI from the source linked above.
