AIG profits dampened by nat cats in Q1
03-05-2018
AIG CEO Brian Duperreault / Source: AIG
American International Group (AIG) had a disappointing start to 2018 as results missed expectations and caused the share price to dive, but CEO Brian Duperreault promised during the May 3 first quarter 2018 results call that the company is on track to address the issues in general insurance and deliver double-digit return on equity (ROE).
AIG reported a drop in net income to $938 million in the first quarter of 2018 from $1.2 billion in the same period a year ago as natural catastrophes impacted the results.
The general insurance operations were hit by $376 million of catastrophe losses primarily related to the California mudslides, US winter storms and the Papua New Guinea earthquake, as well as $135 million of severe losses, according to a company statement.
The combined ratio in general insurance deteriorated to 103.8 percent in the first three months of 2018 from 99.8 percent in the same period a year ago. The operations delivered an underwriting loss of $251 million compared to underwriting income of $12 million a year ago. Adjusted pre-tax income in general insurance halved to $510 million from $1.06 billion over the period.
The rest of this article is locked for subscribers only. Please login to continue reading.
If you don't have a login, you will need to purchase a subscription to gain access to this article, including all our online content. Please use this link and follow the steps.
To request a FREE 2-week trial subscription, use the same link but select the 'trial' option in the dropdown box. NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
AIG, Results, P&C, Insurance, Reinsurance, Brian Duperreault, Peter Zaffino, North America
