(Reuters) – American International Group Inc. beat earnings estimates in the first quarter on Thursday, as strong results in its general insurance and life and pension units plummeted here from winter storms and coronavirus-related death claims.
the company booked an insurance revenue of $ 73 million in its general insurance business during the quarter, compared to a loss of $ 87 million a year earlier, when it booked large losses related to the pandemic.
AIG, one of the largest US insurers, said it had set aside $ 422 million for disaster losses in the unit, mainly related to winter storms, but did not estimate COVID-19-related losses.
Global insurance companies last year saw a sharp increase in payments related to the health crisis at a time when investments they rely on to pay for damaged investigations.
The return on investment has now recovered and many insurers have seen a decline in coronavirus-related claims as vaccine rollouts help more economies to reopen. [1
The insurer's total ratio for general insurance accidents, which excludes catastrophic losses, was 92.4% for the quarter compared to 95.5% a year earlier.
Gross premiums increased 6% to $ 10.73 billion in general insurance business, driven by the insurer's North America and international commercial lines.
AIG's life and pension unit increased by 57% in adjusted income before tax to $ 941 million, partly driven by higher returns on private equity.
However, the life insurance business booked an adjusted loss before tax of $ 40 million, which largely reflects more deaths from the virus outbreak. Catalog