On May 7, 2021, AIG tops the first-quarter revenue target. Good results in its insurance policies and life and retirement divisions offset the impact of storms and coronavirus-related casualty cases.
In the third quarter, the firm earned $73 million in risk management revenue in its life insurance market, relative to a loss of $87 million a year ago, when it suffered significant financial loss due to the COVID-19.
American International Group Inc is widely regarded as the world’s largest insurance company, with businesses in more than 80 countries. Through their General Insurance, Life and Retirement, and Investments business divisions, the insurance company offers various assets general liability, life insurance, retirement plans, and other financial services.
Last year, global insurers endured a marked increase in reimbursements concerning the global health recession, just as the investment opportunities they depend on to cover losses started to deteriorate.
As vaccination implementations help most markets stabilize, investment gains have strengthened, and many companies saw a drop in coronavirus-related claims.
In the quarter ended March 31, consolidated after-tax profits allocated to AIG bondholders increased to $923 million, up from $105 million a year ago.
According to Refinitiv IBES, AIG turned a profit of $1.05 per unit, beating analysts’ expectations of 97 cents.
The insurance company’s life insurance incident year cumulative rate, which includes disaster damages, was 92.4 in the third quarter, down from 95.5 in the previous report.
A percentage less than 100 indicates that the insurer receives more in payments than it reimbursed in claims.
The insurer’s North America and international commercial paths drove a 6% rise in revenue premiums to $10.73 billion in the general insurance sector.
AIG’s insurance and retirement unit increased consolidated pre-tax revenue by 57% to $941 million, owing in part to better-leveraged buyout revenues.
On the other hand, the insurer suffered an estimated pre-tax deficit of $40 million, owing to further casualties caused by the pandemic.