Multinational insurer AIG's combined ratio has improved as its general insurance underwriting income soared, the company announced in a press release.
AIG’s general insurance underwriting income stood at $793m at the end of the third quarter, reflecting an 81% increase year on year, while net premiums written fell 2% year on year to $6.2bn.
Its general insurance combined ratio remained profitable at 86.8%, improving by 580 basis points from last year. The accident year combined ratio, however, was flat at 88.3% but still in profitable territory. It also recorded a return on equity (ROE) of 5.0% and a core operating ROE of 13.6%.
This comes as the company’s net income grew 13% to $519m, following strategic investments announced in October in privately held global specialty insurer Convex Group and global asset manager Onex Corporation.
AIG chairman and chief executive officer Peter Zaffino said, “Our strong balance sheet and financial flexibility have enabled us to pursue compelling opportunities that expand our capabilities, elevate our financial performance, and continue to deliver returns to shareholders.”