AIG unveils Q3 numbers

It’s the turn of American International Group (AIG) to report how it fared in the three months ended September 30 – a period described by chair and chief executive Peter Zaffino as “another very strong quarter of financial performance”.

Here are the numbers for AIG in the third quarter:

Of the adjusted pre-tax income, US$750 million came from general insurance while life & retirement contributed US$589 million. Both figures represent a decline from the third quarter of 2021.

As for the adjusted after-tax income attributable to AIG common shareholders, the slide was attributed to the smaller net investment income. Compared to Q3 last year, AIG’s total consolidated net investment income fell 28% primarily due to lower alternative investment income, lower call and tender income, and lower returns from fair value option equity securities.

Zaffino’s camp, nevertheless, is pleased with the quarterly financial results.

“AIG had another very strong quarter of financial performance, driven by our successful execution of strategic priorities, and highlighted by the initial public offering of Corebridge, another major accomplishment by our team, as well as continued profitable underwriting results and decreased volatility in general insurance,” said the CEO.

“These results are even more impressive when viewed against the backdrop of a challenging macro-economic environment and one of the largest insured-loss hurricanes in US history.”

AIG’s Q3 underwriting income from general insurance grew from US$20 million in 2021 to US$168 million this time around. Of the amount, US$607 million came from the company’s international operations while North America took a beating in the form of a US$439 million underwriting loss.

“The strong performance in general insurance demonstrates the benefits of the high-quality work we have done to transform our global portfolio and implement a best-in-class reinsurance programme, which together have dramatically reduced volatility,” noted Zaffino.