American International Group saw third-quarter underwriting income in its general insurance segment fall 28 percent to $437 million due to higher catastrophe losses and lower favorable development on prior year reserves.

The insurer’s third-quarter net income attributable to common shareholders fell to about $459 million compared to about $2 billion during the same time a year ago. AIG said the drop can be attributed to a reduction in net income from discontinued operations.

Net investment income jumped 14 percent to $973 million.

Total Q3 catastrophe losses in general insurance were $417 million, with $324 million coming from predominantly windstorms and hail in North America. The combined ratio in general insurance was 92.6 compared to 90.5 a year ago in Q3.

“In a challenging catastrophe environment, this performance is remarkable, with industry insured losses expected to top the 2023 total of $125 billion,” said CEO Peter Zaffino in a statement.

AIG’s personal insurance business in North America maintained a Q3 underwriting loss – $59 million in year compared to $57 million for Q3 2023. Growth in high-net-worth business drove 4 percent growth in net premiums written to $632 million. The combined ratio improved 1.5 points to 111.5.

AIG in 2023 formed Private Client Select Insurance Services, a managing general agent serving the high net worth and ultra-high-net-worth market, with Stone Point Capital.

Meanwhile in commercial lines in North America, Q3 underwriting income dropped 67 percent to $96 million. Divestitures caused a 4 percent decrease in net premiums written to about $2.4 billion, AIG said, but retail casualty its Lexington Insurance brand had “robust” new business, strong retention and positive rates trends.

The combined ratio for North America commercial lines went up to 95.5 in Q3 compared to 88 in Q3 2023.