Thanks in part to a $404 million decline in the second quarter expenses of American International Group, Inc. (
AIG), the US insurance titan reported an after-tax operating income of $1.4 billion (approximately NZ$1.89 billion) – an improvement from $1.3 billion in 2016. Costs were cut 15.6% to $2.2 billion.
Another profits booster was AIG’s consumer insurance business, which saw a 33% increase in pre-tax operating income for the second quarter. The insurer cited improved underwriting results, expense reduction, and stable earnings from its retirement businesses.
Bad news, on the other hand, came from commercial insurance – pre-tax operating income declined from last year’s $941 million to $716 million. AIG said the figure reflected higher property losses and the impact of the second half 2016 increase in loss estimates.
Commercial insurance net premiums written were down 15% amid continued execution on AIG’s strategic portfolio actions throughout the second quarter of 2017, as well as not-so-favourable market conditions.
Brian Duperreault, AIG president and chief executive, commented: “We will build on AIG’s strong franchise by maximising the value of our international footprint, which distinguishes us from many of our competitors. While market conditions remain challenging, we are committed to disciplined underwriting and are focused on investing in profitable growth.”
Related stories:
AIG appoints head of soon-to-be-acquired Hamilton USA
XL Catlin picks up industry veteran from AIG
