AIG third-quarter profit misses estimates
(Reuters) – Insurer American International Group Inc <AIG.N> missed analysts’ estimates for third-quarter profit on Friday due to weakness in its life and retirement business.
Pre-tax income from the business fell 9% to $646 million (£499 million) as it booked a $143 million charge related to a review of its actuarial assumption.
The company is among a number of life insurers that typically conduct reviews every third quarter of assumptions they made when writing policies many years ago.
Excluding the impact from the actuarial review, adjusted pre-tax income at the unit fell 3% due to elevated mortality and lower alternative investment returns, the company said.
On an adjusted basis, the company posted a profit of 56 cents per share, well below analysts’ expectations for a profit of $1 per share, according to IBES data from Refinitiv.
AIG’s net income attributable to common shareholders was $648 million, or 72 cents per share, in the third quarter ended Sept. 30, compared with a loss $1.26 billion, or $1.41 per share, a year earlier. https://reut.rs/36r6qzt
AIG’s net pretax catastrophe loss narrowed to $511 million in the quarter from $1.6 billion a year earlier.
The company, one of the largest insurers in the United States, also reported a narrower underwriting loss in its general insurance business – $249 million from $1.73 billion last year.
The insurer’s general insurance accident year combined ratio, excluding changes from losses incurred in past years, was 95.9, compared with 99.4 a year earlier.
(Reporting by Bharath Manjesh in Bengaluru; Editing by Anil D’Silva)