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Market Incident

Public · Developing

AI compiled from Infoway · 4 analyzed stories

AIG Q3 earnings beat on broad-based net premiums written growth

American International Group's third-quarter net income rose to $844 million from $519 million a year earlier. Adjusted earnings per share of $2.06 beat the $1.88 analyst estimate but fell from $2.20, as lower underwriting income offset investment gains and 8% net premiums written growth.

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What happened

AIG reported third-quarter net income of $844 million, up from $519 million a year earlier. Premiums written rose 7%, and adjusted earnings per share beat analysts’ estimate but fell from a year earlier. Investment income helped offset higher catastrophe losses and lower underwriting income.

Global impact / market context

The results combine growing premiums and higher investment income with increased catastrophe costs and lower income from insurance operations. For ordinary investors, the profit beat does not mean every part of the business improved.

What to watch

  1. Check whether premiums written continue to grow, since growth supported the results.
  2. Check catastrophe charges, which rose to $283 million and reduced the support from other income.
  3. Check underwriting income, which fell 29% to $564 million, to see whether this source of earnings remains weaker.

Affected assets

  • American International Group, Inc.

Evidence