AIG beat Q2 profit estimates on strong underwriting, earning $2 per share vs. $1.92 consensus. Premiums rose 9%, combined ratio improved. Alpha Score 46.
AIG beat Wall Street estimates for second-quarter profit on Thursday, reporting adjusted earnings of $2 per share. Analysts had expected $1.92, according to LSEG data.
The insurer's general insurance net premiums written rose 9% to $7.5 billion in the three months ended June 30. Underwriting income climbed 10% to $686 million, helped by disciplined pricing even as the market shifts from broad increases to a more selective environment, CEO Eric Andersen said in a statement.
Catastrophe-related charges totaled $210 million in the quarter, including $75 million tied to the Middle East conflict. That compares with $170 million a year earlier. Catastrophe losses are a volatile earnings component; a quieter period can boost underwriting profits, while a single major event can erase them.
The adjusted accident-year combined ratio – a measure of underwriting performance – improved to 88.1% from 88.4% a year earlier. A ratio below 100 means the insurer collected more in premiums than it paid out in claims.
AIG returned $904 million to shareholders in the quarter through buybacks and dividends.
Last month, Travelers, another large property and casualty insurer, also beat second-quarter profit estimates on lower catastrophe losses and stronger investment income.
AlphaScala assigns AIG a Mixed Alpha Score of 46 out of 100, reflecting the balance between underwriting strength and exposure to catastrophe volatility.
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