(Bloomberg) -- American International Group Inc. reported second-quarter earnings that demonstrated underwriting strength even as stock-market volatility delayed the initial public offering of its life and retirement business and weighed on investment income.

• Second-quarter adjusted profit was $1.19 a share from $1.52 year earlier, the New York-based insurer said Tuesday. That exceeded the average estimate of $1.09 from 11 analysts in a Bloomberg survey.
• “General Insurance’s culture of underwriting excellence continues to be evidenced in our financial results,” Chief Executive Officer Peter Zaffino said in the statement. “AIG continues to drive excellence across the company that will create long-term value for all our stakeholders.”

Key Insights

• AIG improved a key metric that tracks underwriting in North America and internationally. Its combined ratio improved by 5.1 points from a year earlier to 87.4%. That means the firm spent 87.4 cents on claims and expenses for every premium dollar received.
  • It’s the first time the metric has clocked in below 90% in more than 15 years.
• Zaffino said the “high degree of equity market volatility in May and June” led the company to delay the IPO of Corebridge Financial. Completing the listing “is a significant priority,” he said.
• Adjusted pretax income at the life and retirement business fell 50% from the same time last year to $563 million due to higher interest rates, lower equity markets, and net investment-income declines. A reduction in adverse mortality partially offset those decreases.
• General insurance underwriting income increased 73%, though those gains were offset by lower alternative investment income. Net investment income declined 29% from a year ago.

Get More

• For AIG’s press release, click here.

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