(Reuters) — American International Group Inc. exceeded third-quarter profit expectations Wednesday, driven mainly by growth at its general insurance and life and retirement units.
AIG, one of the world’s biggest commercial insurers, said third-quarter net premiums written in its general insurance arm grew 1% to $6.46 billion.
The New York-based company’s general insurance underwriting income jumped by $443 million to $611 million.
Catastrophe-related charges for AIG fell 29% from a year earlier, when the industry faced huge bills from Hurricane Ian, to $462 million for the third quarter, mainly due to the Lahaina, Hawaii wildfire and Hurricane Idalia.
Reinsurance broker Gallagher Re pegged global insured losses from natural catastrophes in the first nine months of 2023 at $93 billion, with the United States accounting for 74% of the losses.
AIG fared better than peer insurer Travelers Cos., which last month reported a 14% fall in quarterly profit, as severe wind and hail storms in parts of the United States drove up catastrophe losses for the insurer.
Total consolidated net investment income rose 33%, helped by higher income from fixed-maturity securities and loan portfolios due to higher reinvestment rates.
Adjusted after-tax income attributable to common shareholders rose to $1.61 per share from 84 cents a year earlier. Analysts on average had expected $1.50, according to LSEG data.
AIG’s general insurance accident year combined ratio was 86.3%, compared with 88.4% a year earlier. The metric excludes catastrophe losses.
The surge in demand for fixed index annuities helped AIG’s life and retirement unit, which saw a 24% jump in adjusted pre-tax income.