American International Group’s General Insurance, or property/casualty business, saw double-digit premium growth and substantially higher net income in Q3 along with lower catastrophe losses.

AIG produced $1.7 billion in net income during the quarter, or $1.92 per diluted common share. That compares with $281 million, or $0.32 pe diluted common share in the 2020 third quarter.

“AIG’s performance in the third quarter and through the first nine months of the year validates the strategy we have been executing over the last few years,” AIG President and CEO Peter Zaffino said in prepared remarks.

AIG’s General Insurance net premiums written grew 11 percent during Q3, including a 17 percent increase in North America. What’s more, the P/C combined ratio dipped to 99.7, compared to 107.2 in the 2020 third quarter. AIG said that strong underwriting results and lower catastrophe losses helped.

Zaffino said the AIG remained on course, progressing with its AIG 200 modernization program and the effort to separate its Life and Retirement program from the company. (AIG recently sold a 9.9 percent equity stake in its Life and Retirement arm for $2.2 billion, and a planned IPO for the business remains on track for 2022.)

“Against the backdrop of a very active CAT season and the ongoing global pandemic, AIG colleagues demonstrated continued resilience and are performing at a high level…,” Zaffino added.

Consolidated net investment income for Q3 reached $3.7 billion, versus $3.8 billion in the previous year. AIG said the change was due to lower returns from fair value open equity and fixed income securities. This was partially offset, however, by strong alternative investment income from private equity.

Here are Q3 result highlights:

• P/C gross premiums written surpassed $9.3 billion, up from more than $8.2 billion a year ago.

• Net premiums written nearly hit $6.6 billion, versus $5.9 billion in the 2020 third quarter.

• Commercial Lines premiums written grew 18 percent in North America and 15 percent internationally. Personal insurance premiums climbed 11 percent in North America and dipped 3 percent internationally.

• AIG reported $20 million in underwriting income, versus a $423 million underwriting loss in the same, year-ago period. In the U.S. and internationally, commercial lines losses grew, but personal insurance was profitable.

• Life & Retirement produced adjusted pre-tax income of $877 million during the quarter.

• AIG repurchased $1.1 billion of common stock during the quarter, redeemed $1.5 billion of debt and ended the quarter with $5.5 billion of liquidity.

Source: AIG