(Reuters) – Insurer American International Group Inc on Tuesday reported a greater than 39% decline in quarterly profit as investment earnings fell by greater than $1 billion and losses from Hurricane Ian pushed up disaster payments.
Industry specialists anticipate the losses from the storm that lashed areas in Florida and South Carolina in September, which danger modeling agency Verisk estimated to go as much as $57 billion for insurers, would plunge smaller insurers out of business.
AIG – one of many world’s greatest industrial insurers – reported $600 million of disaster losses within the quarter, out of which about $450 million was attributable to Hurricane Ian, the insurer mentioned.
Adjusted after-tax earnings attributable to the corporate’s widespread shareholders fell to $509 million within the third quarter ended Sept. 30, or 66 cents per share, from $837 million, or 97 cents, a 12 months earlier.
Total consolidated internet investment earnings fell 28% to $2.7 billion, harm primarily by lower different investment earnings.
Chairman and Chief Executive Officer Peter Zaffino mentioned the outcomes have been “more impressive when viewed against the backdrop of a challenging macro-economic environment and one of the largest insured-loss hurricanes in U.S. history.”
AIG’s internet premiums written in its normal insurance business rose 3% on a continuing foreign money foundation, whereas underwriting earnings climbed to $168 million from $20 million a 12 months earlier.
The normal insurance accident 12 months mixed ratio got here in at 88.4%, in contrast with 90.5% a 12 months earlier. The metric excludes disaster losses, and a ratio under 100 signifies that the insurer earns extra from premiums than it pays out in claims.
The outcomes additionally come after AIG’s life insurance and retirement division, Corebridge Financial, raised $1.68 billion in September within the greatest preliminary public providing to date this 12 months.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli)
