AIG CEO Delivers on Growth Promise, Offers Earnings Beat
(Bloomberg) -- American International Group Inc. Chief Executive Officer Peter Zaffino delivered on his plans for growth after spending years overhauling the insurer, beating earning estimates for the fifth consecutive quarter on the strength of underwriting and investments.
- Second-quarter adjusted profit was $1.52 a share, the New York-based insurer said Thursday in a statement. That exceeded the $1.20 average estimate of 16 analysts in a Bloomberg survey.
- “We have incredible momentum as we head into the second half of the year and I am confident that we will continue to execute on our transformation and growth strategy,” Zaffino said.
- AIG saw improvement in a key metric: underwriting in North America and internationally. The adjusted accident-year combined ratio, which excludes catastrophe costs, decreased to 91.1 from 94.9 a year earlier. That means the firm spent 91.1 cents on claims and expenses for every premium dollar received.
- Net premiums written increasing by 24% from a year ago to $6.86 billion.
- The life and retirement business reported a 26% increase in adjusted pretax income, driven in part by greater investment returns and reduced Covid-19 mortality.
- The insurer increased its stock-buyback authorization to $6 billion.
- The shares rose as much as 2.9% to $50.07 after the announcement. They closed at $48.66 in regular New York trading, and have gained about 29% this year.
- For AIG’s press release, click here.
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