Aug 2 (Reuters) - American International Group Inc on Thursday reported a 17 percent fall in quarterly profit due to ongoing issues in its general insurance business, missing analysts’ expectations.
Chief Executive Officer Brian Duperreault, who took charge more than a year ago, has been trying to turn around the company and its commercial insurance business, including by sharpening underwriting practices.
The company’s second-quarter results included a $200 million restructuring charge related to “efficiency initiatives,” including compensation.
AIG has been on a hiring spree to bring on new executives to boost profits. On Wednesday, AIG said it hired veteran industry executive David McElroy to head its Lexington Insurance Company unit.
He has previously served as executive chairman of Arch Insurance Group Inc. and vice chairman of Arch Worldwide Insurance Group.
Adjusted pre-tax income from AIG’s general insurance business dropped 46 percent to $568 million, while underwriting income swung to a loss of $89 million compared with a profit of $149 million a year ago.
Duperreaut has launched an underwriting review and increased focus on technology in an effort to jumpstart the company’s shares.
The adjusted pre-tax income from the company’s life and retirement business fell 3 percent to $962 million in the quarter.
The insurer posted $937 million, or $1.02 per share, in net income for the second quarter, down from $1.13 billion, or $1.19 per share, a year ago.
On an adjusted basis, it earned $1.05 per share. Analysts on average were expecting an earnings of $1.21, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.
Reporting by Suzanne Barlyn in New York and Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur