AIG returns to profit in Q3 as turnaround strategy kicks in
American International Group (AIG) reported a profitable third quarter in 2016, having made a loss in the same period last year.
AIG's net income for the three-month period ending September 30 was $462 million, compared with a net loss of $231 in the same period in 2015.
AIG's commercial insurance segment reported net premiums written of $4.4 billion in the third quarter of 2016, a decrease of 17 percent from $5.3 billion a year earlier.
The commercial insurance segment's combined ratio was 105.3, up 3 percentage points.
“We continue to execute on the strategic initiatives announced in January,” said Peter Hancock, president and CEO of AIG.
“The strategic divestitures that we announced this quarter, our portfolio management decisions, actions to run-off the legacy portfolio and capital allocation all exemplify our guiding principle of building economic value.
“We are successfully shaping and sculpting our company to be a leaner and more focused insurer. We remain committed to our 2017 financial targets, are ahead of plan in expense management, and continue to target a 6 point reduction in our Commercial accident year loss ratio, as adjusted, despite volatile quarterly results.”
