Canadian Underwriter
News

Net income down at AIG for first quarter after higher catastrophe losses


May 6, 2014   by Canadian Underwriter


Print this page Share

American International Group has reported net income of $1.6 billion for the first quarter of the year, down from $2.2 billion in the first three months of 2013.

After-tax operating income attributable to AIG was $1.8 billion for the first quarter of 2014, compared to $2.0 billion for the prior-year quarter. Insurance pre-tax operating income for the three months ended March 31 totaled $2.7 billion. All figures are in U.S. currency.

Net premiums written for AIG’s property and casualty business were $8.33 billion for Q1, compared with $8.44 billion in the first quarter of 2013. Net premiums earned were $8.23 billion for the first quarter of 2014, down from $8.56 billion in 2013.

The company also reported an underwriting loss for P&C of $97 million for Q1, compared with underwriting income of $232 million in the first quarter last year.

Pre-tax operating income for the P&C business decreased to $1.2 billion “due to higher catastrophe and severe losses, unfavorable loss reserve development, and a decrease in net investment income,” according to AIG.

Catastrophe losses were $262 million, up significantly from $41 million in the first quarter of 2013.

The Q1 combined ratio for P&C was 101.2%, a 3.9 point increase from the prior year quarter.

Underwriting income for commercial insurance underwriting was $113 million for Q1, down from $396 million in Q1 of 2013. The combined ratio for commercial insurance underwriting in the first quarter was 97.7%, compared with 92.2% in Q1 last year.

Consumer insurance underwriting saw a $59 million loss, compared with a $55 million underwriting income in Q1 2013. The combined ratio for that business was 101.9% for the first quarter, versus 98.4% in 2013.

AIG’s life and retirement business had a quarterly pre-tax operating income of nearly $1.42 billion in Q1, up from $1.39 billion in the first quarter of 2013.