Net written premiums for AIG’s non-life plans saw an 11% increase in the third quarter of 2019. Earnings before tax amounted to $811m and the combined ratio was 99.7 – 7.5 points higher than the same quarter last year, due to increased turnover and fewer losses from natural disasters. The Life and Retirement division registered earnings before tax of $877m, mainly due to returns on investments.
Commenting on the results, AIG President and CEO Peter Zaffino said: ‘We are continuing to grow based on our strategy, as indicated by our outstanding results for yet another quarter, the significant progress of AIG 200 and the outcome of the Life and Retirement division’s split off from AIG. Despite a period of major natural disasters and the fact that the pandemic has not yet been eliminated, our people continued to show resilience and register high returns, adding value for our customers and shareholders. Non-life insurance saw very strong results, demonstrating that we have incorporated an underwriting discipline into our culture while endeavouring to limit instability factors through a properly structured reinsurance program. Net written premiums were up by 11%, mainly due to the 17% increase in the commercial lines. We also had one more quarter of impressive profitability, with a combined ratio of 99.7%. The Life and Retirement division also contributed to our profitability, with $877m earnings before tax. During the third quarter, we repurchased common stock valued at $1.1b, amortised debt valued at $1.5b and recorded a liquidity of $5.3b, all factors that reaffirm our strong financial standing. AIG’s performance during the third quarter and for the nine-month period overall is reward for the strategy we have been following in recent years. We have made a huge improvement in the quality of our portfolio, providing excellent risk-management solutions, as we continue to adopt best practices throughout the organisation. Recently, we implemented a very important goal: the conversion of the Life and Retirement division into a independent company, completing the sale of 9.9% of Blackstone stock.’
