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Global insurance conglomerate American International Group Inc.
AIG,
posted strong gains in first-quarter profit, benefiting from reduced catastrophe losses, growth in new business and premium-rate increases.
Another of the biggest publicly traded insurers, Prudential Financial Inc.,
PRU,
swung to a $31 million net loss for the quarter from a year-earlier $2.83 billion net profit, while its closely watched operating income fell 25%, to $1.22 billion. The life insurer booked net realized investment losses and related charges reflecting rising interest rates during the period, while the year-earlier quarter included substantial realized investment gains, among other year-over-year differences.
The AIG results reflected the turnaround of the company’s business of selling property-casualty insurance to corporate clients world-wide. The overhaul has been led by Peter Zaffino, who took over as chief executive in the year-earlier quarter. AIG is also an insurer of wealthy households
AIG reported net income of $4.25 billion, up 9.9% from $3.87 billion in the year-earlier quarter, while its closely watched adjusted after-tax income jumped 16%, to $1.07 billion from $923 million. Wall Street analysts track the adjusted figures, which exclude items considered nonrecurring. AIG’s net income for both periods includes realized gains tied to a reinsurer in which it holds a minority stake.
