(Reuters) – American Worldwide Group Inc. beat first-quarter revenue estimates on Thursday, as robust efficiency in its common insurance coverage and life and retirement items blunted the hit from winter storms and coronavirus-related mortality claims.
The corporate posted an underwriting earnings of $73 million in its common insurance coverage enterprise within the quarter, in contrast with a lack of $87 million a yr earlier, when it booked massive losses associated to the pandemic.
AIG, one of many largest U.S. insurers, mentioned it had put aside $422 million for disaster losses within the unit, primarily associated to winter storms, however estimated no COVID-19-related losses.
World insurers final yr confronted a pointy rise in payouts associated to the well being disaster at a time when investments they depend on to pay claims unraveled.
Funding returns have now recovered and plenty of insurers have seen a fall in coronavirus-related claims as vaccine rollouts assist extra economies to reopen.
Adjusted after-tax earnings attributable to AIG frequent shareholders rose to $923 million within the quarter ended March 31, from $105 million a yr earlier.
Excluding objects, AIG earned a revenue of $1.05 per share, exceeding analysts’ estimates of 97 cents, based on Refinitiv IBES.
The insurer’s common insurance coverage accident yr mixed ratio, which excludes disaster losses, was 92.4% for the quarter, in contrast with 95.5% a yr earlier.
Gross premiums written rose 6% to $10.73 billion within the common insurance coverage enterprise, pushed by the insurer’s North America and worldwide industrial traces.
AIG’s life and retirement unit posted a 57% leap in adjusted pre-tax earnings to $941 million, pushed partly by increased non-public fairness returns.
The life insurance coverage enterprise, nonetheless, booked an adjusted pre-tax lack of $40 million, largely reflecting extra deaths from the virus outbreak.