The formal split of its life and retirement business Corebridge Financial resulted in a second quarter net loss of nearly $4 billion for American International Group (AIG).
The deconsolidation and divestitures from last year affected AIG’s general insurance underwriting income, which declined 28% from $594 million for the second quarter 2023 to $430 million this year. However, on a comparable basis—adjusting for the sale of Crop Risk Services and the sale of Validus Re in 2023—AIG said underwriting income was up 2%.
AIG’s general insurance combined ratio for the quarter was 92.5, up from 90.9 in Q2 2023. Net premiums written (NPW) in the second quarter declined 8% to $6.9 billion but were up 7% on a comparable basis. Commercial lines NPW increased 8%. North America commercial lines NPW grew 10% on a comparable basis, driven by 16% growth in excess & surplus unit Lexington.
“We are very pleased with the ongoing improvement in our underwriting income, record commercial lines new business of $1.3 billion, and very strong retention,” said AIG CEO Peter Zaffino. “Against the backdrop of an increasingly uncertain global risk environment, AIG delivered sustainable earnings growth driven by our focus on underwriting excellence and continued expense discipline.”
North America personal insurance saw NPW grow 8% year-over-year thanks to AIG’s high-net-worth business. The segment took a Q2 2024 underwriting loss of $28 million compared to a loss of $51 million a year ago. The combined ratio for personal lines in North America improved to 105.3 from nearly 113 in Q2 2023.
NPW for international commercial and personal lines grew 6% and 3%, respectively, on a comparable basis.
Catastrophe losses overall were $325 million. Convective storms in the U.S. accounted for most of $156 million in catastrophe losses in North America. About $169 million in cat losses were booked internationally.
Favorable prior-year development for Q2 in General Insurance was $79 million compared to $115 million the prior year.
Topics Profit Loss Underwriting AIG
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