First quarter underwriting profit soared as AIG reported net income of $4.25 billion compared with $3.87 billion during the 2021 first quarter.
Underwriting income in AIG’s General Insurance unit was $446 million during the first three months of 2022, compared with $73 million during the same period a year ago. Underwriting income included $274 million in catastrophe losses, mostly from Australian floods. Catastrophe losses were $422 million during the first quarter 2021.
Net premiums written for General Insurance increased 2% to $6.48 billion in the first quarter on commercial lines growth in North America (6%) and International (5%), “reflecting continued positive rate change, higher renewal retentions, and strong new business production,” AIG said. The first-quarter accident year combined ratio for North America commercial lines improved 5.8 point to 88.1 and International improved 3.3 points to 83.5.
Personal lines grew 39% in the first quarter to $199 million, primarily driven by growth in the insurer’s travel business.
“General Insurance continues to generate top line growth while driving sustainable underwriting improvement and expense discipline in both the combined ratio and the adjusted accident year combined ratio,” said CEO Peter Zaffino in a statement. “We are compounding margin improvement over a multi-year period having improved the combined ratio and adjusted accident year combined ratio by 860 and 600 basis points over the prior two years.”
