AIG General Insurance : American International Group (AIG.N) reported better-than-expected second-quarter results on Tuesday. The second-quarter performance was mentioned. The increase was driven by the company’s life and retirement business expansion and natural disaster costs falling. AIG’s general insurance sector’s net premiums rose 10% to $7.5 billion in the June quarter.
Common shareholders received $1.75 per share in adjusted income, up from $1.39 the year before. This is much better than last year. Refinitiv experts predicted $1.59. AIG’s life and retirement department sold record fixed index annuities, raising premiums and savings by 42%. AIG’s life and retirement unit sold more variable index annuities than ever, contributing to its accomplishment.
Stock income rose 37% to $3.6 billion. Higher reinvestment rates helped fixed-term assets and loan portfolios generate more revenue. Fixed-maturity assets and loan portfolios fueled this increase. This growth was impossible without them.
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AIG made 26% less from general insurance last year. Mainly because the corporation had to pay $250 million for the catastrophe. US-started storms caused most of these losses. Guam’s May typhoon Mawar also contributed In the first half of 2023, natural disasters will cost $52 billion, according to Gallagher Re. Weather and climate-related natural events will cost $46 billion.
Travelers Companies (TRV.N), another insurance provider, saw its previous quarter profit plunge 98%. Three months ago, this dropped. The US hurricanes cost the insurance business $1.48 billion. Reinsurance losses aren’t included.
AIG’s general insurance combined ratio dropped 0.5 points to 88.0%. This crucial measure ignores natural disasters. If the figure is fewer than 100, the insurance company makes more money from premiums than claims, which they want. If the ratio exceeds 100, the insurance firm has paid more claims than premiums. Insurance companies lost money. AIG plans to buy back $7.5 billion in shares. AIG said it was optimistic about the future.