American International Group Inc.’s property-casualty business, stung by higher-than-expected costs in recent years, extended a recovery as it hit a key mark for the second quarter in a row.
Chief Executive Officer Brian Duperreault has sought to overhaul the business, which posted an underwriting profit of $147 million in the second quarter. That helped fuel adjusted profit of $1.43 a share, beating $1.31, the highest estimate from 17 analysts surveyed by Bloomberg.
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The consecutive underwriting profits could reassure stakeholders who want to see stability in P&C. Duperreault said the unit “remains on track to deliver an underwriting profit for the full year.”
An initial public offering boosted results. Net investment income surged 19% to $3.7 billion on rising equity markets and a $142 million gain from the IPO of a holding in the private equity portfolio. AIG didn’t identify the company in its statement Wednesday.
The life and retirement businesses posted profit above $1 billion for the first time since the third quarter of 2017. The operations, coping with negative net flows, benefited from demand for fixed and indexed annuities and “strong” returns on private equity bets.
Mother Nature stung just slightly in the second quarter. Losses tied primarily to North American catastrophes totaled $174 million, net of reinsurance. AIG wasn’t alone: Travelers Cos. broke a streak of beating analyst estimates in the second quarter amid weather losses.