NEW YORK - American International Group, Inc. (NYSE: NYSE:AIG) reported better-than-expected third quarter earnings on Tuesday, driven by strong underwriting results and higher investment income.
The insurance giant posted adjusted earnings per share of $1.23, surpassing analyst estimates of $1.10. Revenue came in at $6.4 billion.
AIG's General Insurance unit delivered solid underwriting performance, with a combined ratio of 92.6%. The accident year combined ratio, as adjusted, was 88.3%.
"AIG delivered excellent third quarter financial results with strong profitability and growth across our businesses highlighting the quality of the underwriting portfolio and our ability to deliver consistent earnings," said AIG Chairman & CEO Peter Zaffino.
Net premiums written in General Insurance grew 6% year-over-year on a comparable basis, led by 7% growth in Global Commercial Lines. North America Commercial Lines achieved 11% growth with new business growth of 22%.
The company reported net investment income of $973 million, up 14% from $856 million in the prior year quarter. This increase was driven by higher income on alternative investments and fixed maturity securities.
AIG continued to execute on its capital return plans, repurchasing $1.5 billion of common shares and paying $254 million in dividends during the quarter.
The insurer ended the quarter with $4.2 billion in parent liquidity and a total debt to capital ratio of 17.9%.
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