AIG has reported general insurance underwriting income of $US793 million ($1.2 billion) for the third quarter, up 81% on a year earlier.

Its general insurance combined operating ratio was 86.8%.

The group’s gross written premium increased 1% to $US8.69 billion ($13.34 billion) and its net income for the quarter was $US519 million ($797.6 million), up 13% on higher underwriting and investment income from general insurance.

Chairman and CEO Peter Zaffino says an exceptional third quarter was followed by investments in specialty insurer Convex Group and asset manager Onex Corp. 

These deals and an agreement to buy the renewal rights for Everest Group’s global retail commercial insurance portfolios were an important next step in AIG’s strategy, he says. 

AIG reported a $US2.36 billion profit ($3.63 billion) for the nine months to September 30, compared with a loss in the same period last year.