AIG posts higher first-half profit
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NEW YORK—American International Group Inc.’s net income for the first six months of this year rose 76.8% to $5.54 billion, the insurer reported Thursday.
The New York-based insurer's Chartis Inc. property/casualty unit generated pretax income of $1.87 billion during the first six months of the year, a 313.9% increase over that of a year earlier. However, Chartis' net premiums dropped 2.3% to $17.92 billion during the first half. The unit's combined ratio improved to 102.3% from 111.1% a year earlier.
For the second quarter, AIG's net income rose 27% compared with a year earlier to $2.22 billion. Chartis' pretax income for the period rose 16.3% to $961 million while net written premiums declined 0.8% to $9.10 billion. Chartis' combined ratio improved to 102.4% from 104.0% a year earlier.
“AIG's insurance operations and aircraft leasing business posted solid profits this quarter,” AIG President and CEO Robert H. Benmosche said in a statement announcing the results. “The performance of our businesses and our stock price enabled the U.S. government to continue to profitably reduce its outstanding assistance to AIG, which includes the U.S. Department of the Treasury's $5.7 billion AIG equity offering in May 2012. The Federal Reserve Bank of New York's Maiden Lane III loan was also paid in full during the quarter.”
Mr. Benmosche said AIG is proud of its accomplishments “and believe(s) we are close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit,” he said.
“At Chartis, second-quarter results demonstrated the continued progress in strategic initiatives to improve the mix of business, loss ratio and risk selection, all of which ultimately increases the intrinsic value of our global franchise,” Mr. Benmoshe said.
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