AIG’s General Insurance segment reported $790m in catastrophe losses, net of reinsurance, or 13.5 combined ratio points, resulting in a General Insurance combined ratio of 107.2 compared to 103.7 in the same quarter of last year
AIG has reported a net income attributable to shareholders of $281 million, or $0.32 per diluted common share, for the third quarter of 2020, a 57% compared to $648 million, or $0.72 per diluted common share, for the same period of 2019.
The adjusted after-tax income attributable to the insurer’s shareholders amounted to $709m, or $0.81 per diluted common share, for the third quarter of 2020, compared to $505m, or $0.56 per diluted common share, for the corresponding period of last year.
The insurer’s general insurance business reported an adjusted pre-tax income of $416m for the third quarter, compared to $507m for the third quarter of last year.
AIG CEO Brian Duperreault said: “We are pleased to report AIG’s solid third quarter results as we embark on an important phase of our journey to become a top performing company.
“In General Insurance, the accident year combined ratio, as adjusted, improved for the ninth consecutive quarter, and the high frequency of natural catastrophes and COVID-19 had a limited impact on financial results.”
The life and retirement business reported a pre-tax income of $975m for the third quarter of 2020, compared to $646m for the same period last year.
Duperreault added: “Life and Retirement’s results continue to demonstrate that it is a market-leading franchise, with a strong improvement in adjusted pre-tax income from last year.
“Our recent leadership transition and corporate structure announcements marked an important milestone for AIG made possible by the significant foundational work our colleagues have successfully executed on over the last three years.”
Third quarter results of other operations and legacy results businesses
The insurer’s other operations segment reported adjusted pre-tax loss of $562m, including $136m of reductions from consolidation, eliminations and other adjustments, compared to $500m, including $46m of reductions from consolidation, eliminations and other adjustments, for the same quarter previous year.
AIG’s legacy results business reported adjusted pre-tax income of $89m for the third quarter of 2020, compared to $93m for the prior-year quarter.