August 7, 2019 / 8:20 PM / 4 months ago

AIG profit rises 18% on strong underwriting, investment income

Aug 7 (Reuters) - Insurer American International Group Inc reported a 17.6% rise in second-quarter profit on Wednesday, boosted by improved underwriting in its general insurance business and higher investment income.

A strong performance in commercial and personal insurance in regions outside of North America helped the insurer post an underwriting profit of $147 million in its general insurance business, compared with a loss of $89 million a year earlier.

The general insurance business reported its first underwriting profit last quarter since 2007, when it was hit by the financial crisis.

AIG said its general insurance accident year combined ratio - excluding changes from losses incurred in past years - improved to 96.1 for the quarter, from 101 a year earlier.

A ratio below 100% means the insurer earns more in premiums than it pays out in claims.

The insurer’s net investment income jumped 19.4% to $3.7 billion, aided by higher returns from AIG’s equity investments.

Net income attributable to the company's common stockholders rose to $1.10 billion, or $1.24 per share, in the quarter ended June 30, from $937 million, or $1.02 per share, a year earlier. (reut.rs/2GVhQjZ)

On an adjusted basis, AIG earned a profit of $1.43 per share. Analysts on average had expected a profit of $1.15, according to IBES data from Refinitiv. It was not immediately clear if the numbers were comparable. (Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli)

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