AIG posts positive Q2 results
Lower-than-expected catastrophe losses have helped AIG record positive results for Q2 2023. The insurer recorded a 10% increase in general insurance net premiums while commercial lines grew by 11%.
Quarterly adjusted earnings per share rose to $1.75, compared to $1.39 for the previous quarter. It was also the highest earnings figures since 2007 and exceeded analysts’ expectations.
According to Refinitiv data reported by Reuters, analysts had anticipated earnings at $1.59 per share.
General insurance net premiums written grew by 10% while commercial lines’ premiums rose by 11%. General insurance APTI also rose, increasing by $62m to reach $1.3bn, driven mostly by an increase in investment income.
These gains were partially offset by a 26% decline in underwriting income caused by a rise in catastrophe losses – notably the impact of US storms and Typhoon Mawar, which hit Guam in May.
However, these losses were generally lower than other insurers. For example, Travellers reported a 98% decline in quarterly profits as a result of hefty catastrophe losses, net of reinsurance, which rose to $1.48bn.
“Our ability to continue to grow, manage volatility and improve profitability reflects our commitment to underwriting and operational excellence,” said AIG chairman and CEO Peter Zaffino.
Other significant factors were the sale of Validus Reinsurance to RenaissanceRe for approximately $2.74bn in cash and $250m in RenaissanceRe common stock, as well as a reduction in its holding of Corebridge Financial, transactions that AIG said had increased the company’s capital efficiency.
