AIG Buoyed by Higher Premiums on Business Insurance

American International Group showed continued improvement in its core business-insurance operations, but a weaker and shrinking share of income from a life-insurance unit being divested kept its operating income relatively flat.

AIG’s so-called adjusted after-tax income, which excludes items judged nonrecurring and noneconomic, dropped 1.4% to $1.21 billion from $1.23 billion, although on a per-share basis, which is what Wall Street analysts closely watch, it rose 9.4% to $1.63. The per-share gain was primarily driven by a 10% reduction in weighted average diluted shares, as well as the strong property-casualty results and higher net investment income, AIG said.