AIG Q2 Profit Rises on 9% Premium Growth, Strong Underwriting
AIG is trading near its 52-week low of $71.245 (12% above the low).
Summary
AIG delivered a solid Q2 with adjusted after-tax income per share up 10% year-over-year, driven by a 9% rise in General Insurance net premiums written and a 10% increase in underwriting income. The top-line growth reflects organic expansion in select segments and strategic transactions, partially offset by declines in North America Property lines. Underwriting benefited from an improved expense ratio and higher favorable prior year development, though catastrophe charges were elevated. Net investment income dipped due to fair value changes in the Corebridge stake and equity securities. The company returned $904 million to shareholders through buybacks and dividends, signaling confidence in its capital position. Management noted a shift to a more selective pricing environment but reaffirmed its 2025 financial targets. This follows a strong Q1 where underwriting income surged 218%, indicating sustained momentum in core operations. The bottom line fell in Q2.
At the time of this announcement, AIG was trading at $79.97 on NYSE in the Finance sector, with a market capitalization of approximately $42.4B. The 52-week trading range was $71.25 to $87.29. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.