3 weeks ago
AIG beats second-quarter profit estimates on robust underwriting
AIG is a very big company that sells insurance.
Insurance is a promise to pay people money if something bad happens.
AIG just told everyone how much money it made in the last three months.
It made more money than most people expected.
This happened because the company was careful and charged good prices for its insurance.
Bad events, like storms or conflicts, cost AIG some money, but not too much.
The company's new boss, Eric Andersen, said the company is doing well.
AIG gave $904 million back to people who own parts of the company.
That is a whole lot of money!
Good underwriting helped AIG beat its profit goals.
AIG beat Wall Street expectations with second-quarter after-tax adjusted profit of $2 per share, up 10% and above the $1.92 consensus.
General insurance net premiums written jumped 9% to $7.5 billion in the three months ended June 30.
Underwriting income growth climbed 10% to $686 million.
Catastrophe-related charges totaled $210 million, including $75 million tied to the Middle East conflict, versus $170 million a year earlier.
AIG returned $904 million of capital to shareholders in the second quarter.
- Who
- AIG (American International Group), one of the world's largest commercial insurers, and its newly appointed CEO Eric Andersen.
- What
- Beat second-quarter profit estimates, driven by robust underwriting and disciplined pricing.
- Where
- Not explicitly specified in the article; AIG operates globally as a major commercial insurer.
- When
- For the three months ended June 30, with results reported on Thursday, Aug 6.
- Why
- Higher premiums, disciplined underwriting, and strong underwriting gains cushioned an uptick in catastrophe-related claims.
Key facts
- Company
- AIG (American International Group)
- Quarter
- Q2, three months ended June 30
- After-tax adjusted profit
- $2.00 per share, up 10% (estimate: $1.92)
- General insurance net premiums written
- $7.5 billion, up 9%
- Underwriting income
- $686 million, up 10%
- Catastrophe-related charges
- $210 million, incl. $75 million tied to Middle East conflict
- Combined ratio
- 88.1%, improved 30 basis points year-over-year
- Capital returned to shareholders
- $904 million
Quotes
Eric Andersen
newly appointed CEO of AIG
“"Strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment,"”
livemint.com
Sources
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