AIG Maintains Guidance as Second-Quarter Adjusted Earnings Advance

American International Group (AIG) reiterated its full-year guidance as it posted better-than-expected adjusted earnings for its second quarter after markets closed on Wednesday, buoyed by underwriting profitability in the general insurance division.

Adjusted after-tax income was $1.43 per share in the three months ended June 30, up from $1.05 per share in the prior-year quarter and also ahead of the consensus estimate of analysts polled by Capital IQ for $1.16 if comparable.

Adjusted revenue in the life and retirement unit was the biggest contributor to overall adjusted revenue, up by 14% to $3.83 billion. Adjusted revenue at individual retirement rose by 7% to $1.47 billion. Within the life insurance unit, adjusted revenue rose 6% to $1.15 billion and within the institutional markets segment, adjusted revenue rose by 51% to $418 billion.

“The additional progress on our path to long-term sustainable and profitable growth reflected in this quarter’s results was driven by the foundational changes we implemented across AIG last year,” Brian Duperreault, chief executive of AIG, said.

“General insurance achieved its second consecutive quarter of underwriting profitability resulting from underwriting and expense discipline, and reinsurance actions, and remains on track to deliver an underwriting profit for the full year.”

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