(Reuters) -American International Group Inc. beat second-quarter earnings estimates on Thursday, driven by strong results in its general insurance and life and pension customers.
The US insurer reported $ 463 million in insurance revenue in its general insurance business in the quarter, compared to a loss of $ 343 million a year earlier, when it recorded large losses related to the pandemic.
The business received $ 118 million in disaster losses, compared to $ 674 million the previous year.  Global insurance companies faced a sharp increase in payments related to the health crisis last year, but many have now seen a reduction in coronavirus-related injuries as vaccines roll out.
Adjusted after-tax income attributable to AIG's common shareholders rose to $ 1
Excluding items, AIG earned $ 1.52 per share, which exceeded analysts' estimates of $ 1.20, according to Refinitive IBES.
The company's overall ratio for general insurance accident year – excluding catastrophic losses – was 91.1% for the quarter, compared to 94.9% a year earlier.
Gross premiums increased by 12% to $ 9.5 billion in general insurance business.
AIG's life and pension unit rose 26% in adjusted income before tax to $ 1.12 billion, driven in part by higher private equity returns.
The life insurance business reported an adjusted profit before tax of $ 20 million, compared to $ 2 million a year earlier, which largely reflects fewer deaths from the virus outbreak.
AIG plans to use an IPO to sell part of its life and retirement business, while Blackstone Group last month agreed to buy a significant stake.
AIG said on Thursday that it believes the listing is the next step in the separation.