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MIGA

AIG first-quarter earnings mark strong start to year

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Higher investment income and an improved general insurance underwriting performance have contributed to a jump in AIG first-quarter earnings.

Net profit rose to $US3.9 billion ($5 billion) from $US1.7 billion ($2.2 billion) a year earlier while the combined operating ratio improved to 98.8% from 101.5%.

“In general insurance, we delivered strong growth in net premiums written, driven by our North America and international commercial businesses, and underwriting profitability,” CEO Peter Zaffino said.

“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.”

Gross written premium (GWP) rose 6% to $US10.73 billion ($13.67 billion), with North America commercial lines seeing a 29% jump in net premiums written, while a decline in global personal insurance included pandemic impacts on the travel business.

AIG’s general insurance pre-tax income rose to $US845 million ($1.08 billion) from $US501 million ($638 million) while life and retirement income rose to $US941 million ($1.2 billion) from $US601 million ($766 million).