by (Reuters) -American International Group reported a higher profit in the second quarter on Wednesday, driven by strong insurance technical profits and higher returns on investments.
Insurers such as AIG and travelers benefit COS because companies and private individuals have retained the expenses for insurance against the background of economic uncertainty.
“We continued to make significant progress in our strategic, operational and financial objectives in the long term, while we navigate through a dynamic macro-economic environment,” said CEO Peter Zaffino in a statement.
Net premiums for general insurance, written, on a similar basis, rose to $ 6.88 billion every three months ending on 30 June. General insurance insurance income rose 46% to $ 626 million.
AIG’s general insurance ratio came on an adapted basis on 89.3%, compared to 92.5% a year earlier. A ratio under 100 means that the insurer earned more premiums than he paid in claims.
A rebound on the stock markets after rates-related volatility has also helped insurers to increase their investment income.
The net investment income rose by 48% to $ 1.47 billion in the second quarter, powered by a change in the real value of AIG’s equity in Corebridge and higher income on Fixed Maturity Securities.
The company retains an interest in Corebridge, the life and pension insurer who split it off in 2022.
AIG placed catastrophe-related costs of $ 170 million in the quarter, at $ 330 million in the period from a year ago.
The company – one of the world’s largest commercial insurers – reported adjusted income after taxes due to ordinary shareholders of $ 1.04 billion, or $ 1.81 per share, compared to $ 771 million, or $ 1.16 per share, a year earlier.
Shares of the company won almost 8% in 2025, which performs better than the wider Dow Jones US Select Insurance Index.
(Reporting by Pritam Biswas in Bengaluru; adaptation by Sriraj Kalluvila)
