American International Group Inc. will pursue a first public offering to abolish its life and pension business despite takeovers from other companies interested in buying part of the business, its top executive said on Friday after the insurer reported a significantly higher
Insurance rates continued to rise during the first quarter of the year, especially for surplus and surplus operations, AIG reported.
AIG is likely to launch an IPO for its life and retirement operations by the end of 2021, Peter Zaffino, President and CEO of the insurer, said in a conference call with analysts on Friday. AIG announced last year that it planned to sell up to 19.9% of its life and pension business, and in its last quarterly earnings report, Zaffino said the company had received several approaches from companies that wanted to buy a minority stake in the business. [1
AIG reported net income of $ 3.87 billion for the first quarter, more than twice as much as for the same period last year, reflecting higher investment income and increased income from its real estate / non-life insurance business, where interest rates have risen significantly. Investment income increased 46% to $ 3.7 billion, partly due to strong stock markets.
The insurer reported $ 422 million in net disaster losses after reinsurance for the quarter, primarily from winter storms.
AIG's general insurance business reported gross premium. written on 10.73 billion dollars, an increase of 6.4% compared to the same period last year, while the net attributable premium increased 9.4% to 6.48 billion dollars when AIG retained more premiums.
North America's commercial lines reported a net premium of $ 2.79 billion, an increase of 29.4%. The net premium of international commercial lines increased by 20.3% to $ 1.98 billion.
The insurer's total share for the first quarter was 98.8% compared to 101.5% for the previous year. The total share of North American commercial lines was 106.7%, a decrease from 100.9%, and international commercial lines reported a 90% percentage point, an improvement from 101.4%.
Mr. Zaffino, who joined AIG four years ago to help turn around the then-sick insurance company, said the company's focus shifted from "reorganization to growth" during the first quarter.
AIG saw significant increases in the quarter, with global commercial insurance rates increasing by 15% overall, Zaffino said. North America's commercial interest rates also increased by 15%, with its surplus line unit Lexington Insurance Co. which reported a 36% increase in accident transactions, surplus accidents by 31% and financial lines up by 24%.
Cyber liability increased 41% during the quarter, said David McElroy, CEO of General Insurance, noting that AIG has added sublimit and coin insurance requirements to deal with the increased ransomware exposure.