AIG announces improved profitability and delays spin-off – International – Insurance News
AIG reports improved profitability and delays spin-off
August 15, 2022
AIG’s combined operating ratio reached its best quarterly level in more than 15 years, driven by business line results in North America and internationally, the company says, while noting that the spin-off of its life and pension insurance business was delayed due to stock market volatility. .
Non-life underwriting income increased 73% to US$799 million ($1.12 billion) in the June quarter as the combined ratio improved 5.1 points to 87.4% . The division’s adjusted pretax profit rose 5% to $1.26 billion ($1.77 billion).
“Significant top line growth, strong renewal and new business retention, intentional improvements in business mix, above cost loss trends, combined with a disciplined and focused approach to minimize volatility , led to an impressive improvement in profitability,” said Chairman and CEO Peter Zaffino. .
Gross written premiums rose 1% to $9.58 billion ($13.45 billion), as gains in commercial lines were offset by declines in global individual lines.
The company has decided to postpone the launch of its initial public offering (IPO) of Corebridge Financial due to the “high degree of stock market volatility” in May and June.
“The postponement of the IPO has given us the opportunity to further accelerate progress on many separation initiatives and solidify the capital structure of this business as a stand-alone company,” Zaffino said.
“Completing the IPO is an important priority for us and we remain ready to execute, subject to regulatory approvals and market conditions.”
Adjusted life and pensions pretax income halved in the second quarter to $563 million ($790 million).