Net income up slightly to $2.2 billion at AIG in third quarter

American International Group reported Monday a net income of $2.19 billion for the third quarter of the year, ended Sept. 30, a slight increase from the same period of 2013, when it reported a profit of $2.17 billion.

After-tax operating income was $1.7 billion for the third quarter of 2014, up from $1.4 billion in the prior year quarter.

For property and casualty insurance, net premiums written totaled $8.95 billion for the quarter, compared with $8.66 billion in the third quarter of 2013. Net premiums earned also rose, from $8.43 billion in the third quarter of 2013 to $8.63 billion in this past quarter.

For the third quarter this year, the company did post an underwriting loss in property and casualty of $169 million, compared with a $134 million loss in the prior year quarter.

The P&C combined ratio for Q3 this year was 102.0%, a slight change from 101.6% in the third quarter of 2013.

Catastrophe losses were $284 million, compared to $222 million in the third quarter of 2013.

In commercial insurance underwriting, AIG reported net premiums written of $5.45 billion, compared with $5.22 billion in 2013. Net premiums earned in Q3 this year totaled $5.34 billion, compared with $5.14 billion in 2013.

In that segment, AIG reported an underwriting loss of $54 million, compared with an $8 million loss in Q3 of 2013.

The combined ratio for the third quarter this year in commercial insurance was 101.1%, up from 100.2% in the same period last year.

Meanwhile in consumer insurance, AIG reported an underwriting income of $40 million for the quarter, up from $4 million in Q3 last year. Net premiums written in that segment were up slightly year over year to $3.45 billion (from $3.44 billion), while net premiums earned remained virtually unchanged at $3.27 billion.

“I am excited to lead AIG forward and further build on our capabilities to serve all our stakeholders,” AIG president and CEO Peter Hancock said in a statement Monday.

“Our new management structure brings together a team that has the skill set, experience, and commitment to execute on our strategies and serve our customers around the world. Together, we remain disciplined in our approach to balancing growth, profitability, and risk and focused on maintaining the strength of our industry-leading balance sheet.

“The solid third quarter results were driven by consistent performance across our businesses,” Hancock also noted.

“While no one quarter is a trend, our risk-adjusted return focus could be seen in various metrics including improved accident year loss ratios, modest net spread compression, and continued capital management. In the quarter and through early October, we repurchased $1.5 billion of AIG Common Stock and completed over $4.0 billion in liability management, excluding DIB activities. As a result of our strong capital position and a positive outlook for our businesses, the Board has authorized additional share repurchases of $1.5 billion.”