AIG posts profit on stronger underwriting in general insurance unit

AIG posts profit on stronger underwriting in general insurance unit

Insurer American International Group Inc on Thursday reported a quarterly profit compared to a year-earlier loss, helped by smaller catastrophe losses and improved underwriting in its general insurance business.

FILE PHOTO: American International Group Inc. (AIG) headquarters seen in New York
FILE PHOTO: American International Group Inc. (AIG) headquarters seen on the day of the company's 2017 annual shareholder meeting at 175 Water Street, New York, U.S., June 28, 2017. REUTERS/Suzanne Barlyn/File Photo

REUTERS: Insurer American International Group Inc on Thursday reported a quarterly profit compared to a year-earlier loss, helped by smaller catastrophe losses and improved underwriting in its general insurance business.

Net income attributable to the company's shareholders was US$922 million, or US$1.03 per share, in the fourth quarter ended Dec. 31, compared to a loss of US$622 million, or 70 cents per share, a year earlier.

AIG, one of the largest insurers in the United States, posted an underwriting income of US$12 million in its general insurance business, compared with a loss of US$1.07 billion, a year earlier.

Underwriting income is the difference between premiums an insurer collects on policies and claims it pays out.

Net pre-tax catastrophe loss at the general insurance unit narrowed to US$411 million in the reported quarter from US$826 million, a year earlier.

Total net investment income rose 30per cent to US$3.6 billion.

The insurer also said it expects to pay US$1.7 billion as part of a tax settlement with the U.S. Internal Revenue Service, which could be made as early as the first quarter of 2020.

The settlement amount, which AIG had previously disclosed, is related to cross-border financing transactions dating back to 1997.

(Reporting by C Nivedita in Bengaluru and Suzanne Barlyn in New York; Editing by Shounak Dasgupta)

Source: Reuters

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