AIG profits rise 5.7% in 2006

NEW YORK--American International Group Inc. reported a 5.7% increase in net income for the nine months ending Sept. 30, to $10.61 billion.

For the third quarter, the insurer reported a 142.1% increase in net income, to $4.22 billion.

Results for the third-quarter and nine-month periods of 2005 included $1.57 billion in catastrophe related losses, net of tax. There have been no significant catastrophes in 2006, said the insurer.

Net premiums written for general insurance operations for the nine-month period increased 7.5%, to $34.11 billion, while the insurer posted an 88.2% combined ratio, compared with a 92.3% combined ratio for the same period a year ago.

For the quarter, net premiums written increased 8.8%, to $11.22 billion, while the combined ratio improved to 89.1%, vs. 91.4% for the comparable period of 2005.

Commenting on results, AIG President and Chief Executive Officer Martin J. Sullivan said in a statement: "AIG had a very good quarter led by strong performance in our worldwide general insurance businesses and improved results in our life insurance and retirement services operations. We continue to execute our growth strategies by capitalizing on our unique global franchise and product and distribution capabilities that distinguish AIG from our competitors."