American International Group (AIG) Reports Strong Second-Quarter Results
American International Group (AIG) reported impressive second-quarter results, with adjusted earnings per share (EPS) rising to $1.81 from $1.16 in the same period last year, surpassing the forecasted $1.61. The company's adjusted return on equity (ROE) reached 9.7%, beating the anticipated 9%. Book value per share increased to $74.14 from $68.40, exceeding estimates of $71.63.
Performance of the General Insurance Segment
In its General Insurance (GI) segment, net premiums written dipped slightly by 0.8% year-over-year to $6.88 billion, falling short of the expected $7.14 billion. The segment faced catastrophe losses totaling $170 million. Despite this, GI's net investment income on an after-tax basis grew by 17% to $871 million, outperforming the projected $748.8 million. The combined ratio improved to 89.3% from 92.5%, ahead of the forecasted 90%, with an ex-catastrophe and development ratio of 88.4%, slightly higher than last year's 87.6%. The loss ratio decreased to 58.3% from 61%, below the expected 59.7%, while the expense ratio remained stable at 31%.