AIG reports ‘an excellent start to the year’ with profit hike and improved combined ratio
Peter Zaffino, AIG’s president and chief executive officer, has hailed an “excellent start to the year” as the company reported a hike in profits and a reduced general insurance combined ratio driven by the performance of General Insurance International.
AIG’s net profit for Q1 was $3.9 billion, compared to £1.7 billion for the previous year quarter. General insurance gross premiums written were $10.7 billion, compared to $10 billion in the same quarter the previous year and its General Insurance combined ratio was 98.8 percent, down 2.7 percent from 100.51 in the prior year quarter.
“ AIG had an excellent start to the year and that is reflected in our first quarter results with growth in General Insurance and continued strong performance in Life and Retirement,” said Peter Zaffino, AIG’s president and chief executive officer.
“In General Insurance, we delivered strong growth in net premiums written, driven by our North America and International Commercial businesses, and underwriting profitability. The combined ratio was 98.8 inclusive of catastrophe losses and 92.4, as adjusted. The successful repositioning of our global portfolio over the last three years allowed us to pivot from remediation to profitable growth, which we expect to continue throughout the year.
“Life and Retirement delivered another solid quarter, with adjusted pre-tax income growth driven by diversified product offerings and increased investment returns. With strong sales and profitability, this business continues to be a market leader in the protection and retirement savings industry.
“Our strong balance sheet and financial flexibility allow us to continue to invest in growth and core operating fundamentals with capital returns to shareholders when appropriate. During the first quarter we repurchased $362 million of common stock and ended the quarter with $7.9 billion of liquidity.
“I am immensely proud of our global colleagues and what we have accomplished together. Our first quarter results reflect significant momentum as we continue our pursuit to become a top performing company.”
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