AIG posts excellent Q1 results aided by top line general insurance growth
Global insurance conglomerate American International Group (AIG) posted excellent first quarter 2022 results with a hike in profits as general insurance generated top line growth while driving sustainable underwriting improvement and combined ratio. The company’s chief executive Peter Zaffino (pictured) highlighted “significant progress” on the separation of life and retirement from AIG to establish a standalone capital structure.
AIG’s net profit for Q1 was $4.3 billion, 10%+ higher than $3.9 billion reported in the prior year quarter. The increase reflected more net realised gains, general insurance growth, higher premiums and lower cat, partially offset by lower net investment income across the portfolio.
General Insurance adjusted pre-tax profit was $1.2 billion with a $373 million increase in underwriting income, gross premiums written increased 7% to $11.5 billion, and a combined ratio of 92.9% improved by 5.9 points from the prior year quarter. The higher GWP was driven by strong North America commercial lines and international commercial lines growth of 6% and 5%, respectively.
Life and retirement adjusted pre-tax profit of $724 million showed lower net investment income due in large part to lower yield enhancements, partially offset by slightly lower mortality compared to the prior year quarter.
“ AIG delivered excellent results, while simultaneously advancing a number of strategic, operational and financial priorities,” said chairman and CEO Zaffino. “I am very pleased with the progress we achieved.”
He noted that life and retirement’s diversified business withstood “significant market volatility” but the group made huge progress since the beginning of the year to prepare the L&R business to be a standalone, public company.
Zaffino said AIG strives “to be a top performing company”.
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