Reuters — American International Group Inc. beat market estimates for quarterly profit on Monday as a jump in underwriting income cushioned the blow from lower investment returns.
Net premium income in the company’s non-life insurance business increased 5% on a constant currency basis in the April-June quarter to $6.9 billion, while underwriting income rose 73%.
That helped AIG, one of the world’s largest commercial insurers, report adjusted earnings after taxes attributable to common stockholders of $1.19 per share. Analysts had expected a figure of $1.10 per share, according to Refinitiv IBES data.
But the insurer’s consolidated net investment income fell 29% to $2.6 billion, hurt in part by weakness in alternative investments such as private equity.
An unabated rise in inflation, rising interest rates and the weight of the Russia-Ukraine war have rallied financial markets this year, eroding the investment income that drove insurer profits last year.
AIG also blamed market volatility for a delay in the IPO of its life and pensions unit.
The entity ̵1; which will be renamed Corebridge Financial Inc when it goes public – had filed for its offering in March and planned to complete its listing by the end of June, subject to market conditions.
“Completing the IPO is an important priority for us and we remain ready to execute,” Chief Executive Peter Zaffino said without giving a new deadline for the offering.
AIG first announced the move in 2020 and sold a 9.9% stake in the unit to private equity firm Blackstone Group Inc for $2.2 billion last year.