AIG CEO Touts a Shift Toward Growth as Insurer Beats Estimates
(Bloomberg) -- American International Group Inc. beat analysts’ profit estimates in a quarter Chief Executive Officer Peter Zaffino heralded as a shift toward growth following a years-long effort to overhaul the insurer.
- “The successful repositioning of our global portfolio over the last three years allowed us to pivot from remediation to profitable growth, which we expect to continue throughout the year,” Zaffino said Thursday in a statement announcing first-quarter results. Adjusted profit of $1.05 a share beat the 95-cent average estimate of 16 analysts in a Bloomberg survey.
Key Insights
- A key metric for AIG improved with underwriting in North America and international businesses. The adjusted accident-year combined ratio, which excludes catastrophe costs, decreased to 92.4 from 95.5 a year earlier.
- Catastrophe costs totaled $422 million, primarily related to winter storms.
- The life and retirement business reported a 57% increase in adjusted pretax income, driven in part by greater investment returns. Life insurance saw a $40 million adjusted pretax loss brought on by elevated mortality driven by Covid-19.
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- For AIG’s press release, click here.
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