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Third quarter net income attributable to American International Group (AIG) shareholders increased about $1 billion compared with the same time period a year ago, even with catastrophe and investment losses.

Q3 net income was about $2.7 billion compared with $1.7 billion a year ago. Adjusted after-tax income attributable to AIG common shareholders was $509 million compared with to $837 million. Net investment income dropped to about $2.7 billion from $3.7 billion during Q3 2021.

CEO Peter Zaffino in a statement said he was “extremely pleased with the overall underwriting profit in the quarter,” especially in light of $600 million of catastrophe losses AIG booked, which added 9.8 points to the combined ratio in Q3. About $450 million of catastrophe losses can be linked to Hurricane Ian, he said. Zaffino said the 88.4 accident-year combined ratio excluding catastrophes marked the 17th straight quarter of improvement.

Underwriting income in General Insurance was $168 million in Q3 2022 compared with $20 million a year ago.

“The strong performance in General Insurance demonstrates the benefits of the high-quality work we have done to transform our global portfolio and implement a best-in-class reinsurance program, which together have dramatically reduced volatility,” Zaffino added.

AIG said its General Insurance segment saw Q3 net premiums fall 3% to about $6.4 billion but North America and International commercial lines recorded growth on a constant-dollar basis, “reflecting continued positive rate change, higher renewal retentions, and strong new-business production.”

Net premiums in personal lines fell 11% in North America and 16% in International due primarily to a decline in warranty business and actions the insurer has been taking in its high-net-worth portfolio in North America.

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Profit Loss

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