(Reuters) – American International Group Inc. on Monday noted a 56% decrease in quarterly adjusted earnings, partly stimulated by higher catastrophic losses and lower returns on private capital.
Adjusted after-tax income attributable to AIG shareholders fell to $ 571 million in the second quarter ending June 30, from $ 1.3 billion the year before.
Excluding items, AIG earned 66 cents a share, up from $ 1.43 a share a year earlier, which exceeded Fact's expectations of 50 cents a share, the company said.
AIG, one of the largest insurance companies in the United States, recorded an insurance loss of $ 343 million in its general insurance business, compared to a profit of $ 1
$ 674 million in disasters, net after reinsurance, partly reflecting $ 458 million related to COVID-19 and $ 126 million in claims.
A decrease in travel during the pandemic affected AIG's travel insurance p.
Net adjusted investment income fell $ 537 million from a year ago to $ 3.2 billion. The result was damaged by $ 276 million in private capital losses compared to $ 238 million in private capital income a year ago, which included a large gain from one of the holdings.
AIG's total insurance year for general insurance year excluding changes from losses in recent years was 94.9 for the quarter, compared to 96.1 a year ago.
AIG has used the meter to measure the success of a turnaround plan launched by CEO Brian Duperreault when he took the insurance tube in 2017.  A ratio below 100 means the insurer earns more in premiums than it pays out in receivables.
Gross written premiums decreased by 2% to $ 8.47 billion in the general insurance industry.
AIG's Life and Pensions Unit recorded $ 881 million in adjusted premium income compared to $ 1.0 billion a year ago, driven in part by private capital losses and COVID-19 deaths.
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