We’ve all followed the financial and political downfall of AIG. Once one of the world’s biggest, and most successful insurance companies, the firm plunged into ignominy when its credit default swap crisis threatened the world’s economy.
The U.S. federal government was forced to bail the company out with a $180 billion loan.
From there it has been close to a soap opera. CEO after CEO and board after board could not put the proverbial Humpty Dumpty back together again. Current AIG President and CEO Brian Duperreault has finally managed some major progress.
After over a decade of losses — and upon Duperreault’s promise — AIG’s General Insurance unit will see an underwriting profit for 2019. The reason for the current crowing is because it’s the second quarter in the row.
AIG’s P&C division earned $147 million in underwriting profit for the second quarter compared to an $89 million loss a year ago. In the first quarter General Insurance grabbed a $179 million underwriting profit. So things seem to be cooking.
“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,” Duperreault said.
The combined ratio looks good, too. It hit 97.8 in the second quarter compared to 101.3 last year.
The rest of the news is good as well. AIG — overall — managed $1.1 billion in net income in the second quarter. That’s a large leap over the $937 million in the second quarter last year.
Duperreault said the company’s overall results are from foundational changes implemented to assure growth and stability. “Our strong second quarter performance demonstrated continued positive momentum through the first half of 2019,” Duperreault said. “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.”
Source link: Insurance Journal