AIG Profit Rises, Beats Expectations on Improved Underwriting
(Bloomberg) -- American International Group Inc. reported first-quarter earnings that beat analyst expectations while touting its underwriting profitability and progress on the separation of its life and retirement business.
- First-quarter adjusted profit was $1.30 a share, the New York-based insurer said Tuesday. That exceeded both the average estimate of $1.20 from 14 analysts in a Bloomberg survey and the $1.05 reported for the same period last year.
- “In the first quarter of 2022, AIG delivered excellent results, while simultaneously advancing a number of strategic, operational and financial priorities,” Chief Executive Officer Peter Zaffino said in the statement. “I am very pleased with the progress we achieved.”
Key Insights
- AIG improved a key metric that tracks underwriting in North America and internationally. Its combined ratio improved by 5.9 points from a year earlier to 92.9%. That means the firm spent 92.9 cents on claims and expenses for every premium dollar received.
- Zaffino touted steps the company took to split off its life and retirement unit. Those moves included raising $6.5 billion through a debt offering and striking an asset-management agreement with BlackRock Inc.
- Investment income was weaker in the first quarter, down 11% from a year ago to $3.2 billion. The company attributed the decline to lower income from call and tender offer activity in the marketplace.
- The board increase a share-repurchase authorization to $6.5 billion, and held the dividend steady at 32 cents a share.
Get More
- For AIG's press release, click here.
©2022 Bloomberg L.P.
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