AIG returns to profit as it reaps rewards of restructuring
American International Group (AIG) enjoyed a return to solid profits in its first quarter results as its CEO highlighted the company was enjoying the fruits of actions it has taken to execute to strengthen its balance sheet and improve earnings quality.
The company made a net profit of $1.1 billion in the first quarter compared with a loss of $183 million in the same period a year earlier. Its pre-tax operating income increased to $1.7 billion compared with $1.1 billion a year earlier.
The company stressed its ongoing efforts to improve its portfolio. Net premiums written by its commercial insurance unit, for example, dropped by 17 percent (or 14 percent on a consistent dollar basis) to $3.6 billion in the quarter as it executed a strategy of better risk selection and also bought more reinsurance.
It said the increased use of reinsurance in property represented 4 points of the decline, while the remaining 10 points was related to continued execution on our strategic portfolio actions throughout the first quarter of 2017, and the important January 1st renewal date in Europe.
“Our first quarter results highlight the success of the actions we have taken to execute on our strategy, strengthen our balance sheet, and improve earnings quality,” said Peter Hancock, AIG chief executive.
“Operating results across our core Commercial and Consumer businesses improved and we continued to return excess capital to shareholders. Since January 1, 2016, we have returned over $18 billion of capital towards our $25 billion target. We will continue to execute our strategy and further build on our position as a leading global insurance company.”
Today’s stories
Munich Re leads investment in insurtech firm Next
Swiss Re blames Australian cat claims for slump in Q1 profits
Profits tumble at PartnerRe but CEO highlights positives
Profits up, GWP down at Lancashire as CEO warns on 'unsustainable' rates
Swiss Re spies prospects in Asia as it shuns unprofitable business
Liberty hires chief technology officer from Chubb
Positive reserve development helps RSA absorb £40m Ogden hit
Willis Towers Watson elevates Tarantello to lead western US
Aon acquires Mayfair's global benefits portfolio to expand in APAC
Investment gains drive Q1 profits at Argo Group amid challenges
Chubb wraps up European integration
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze