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American International Group (ÌìÃÀÍøÕ¾´«Ã½´«Ã½) during the third quarter recorded a 264% increase in underwriting income within its General Insurance segment to $611 million as adjusted pretax income in the segment increased to about $1.37 billion compared to $750 million the prior year.

The New York-based insurer’s third quarter overall net income attributable to common shareholders fell to about about $2 billion compared to $2.7 billion for the same quarter last year. The decline was primarily driven by a decrease in net realized gains and lower ownership in multinational financial services company, Corebridge.

However, Q3 total investment income increased 33% to $3.6 billion and the underlying business within General Insurance improved, especially for business in North America where underwriting income in Q3 was $235 million, led by a $292 million gain in commercial lines. In North America a year ago, General Insurance logged an underwriting loss of $493 million, with red ink in commercial and personal lines. Underwriting income in North America personal lines remained at a $57 million loss in Q3 compared to $65 million a year ago.

The combined ratio within the General Insurance segment was 90.5 in Q3 compared to 97.3 a year ago. The combined ratio for Q3 included $462 million of total catastrophe-related losses, adding 6.9 loss ratio points. North America commercial lines saw the largest swing in combined ratio – from 113 in Q3 2022 to 88.9 this year.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ also recorded Q3 favorable prior year reserve development, net of reinsurance and prior year premiums, of $210 million.

“Our continued attention to underwriting excellence and portfolio optimization has manifested in outstanding results for General Insurance,” said CEO Peter Zaffino, in a statement. He called growth in ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s portfolio “impressive,” as Q3 net premiums written increased 9% on a comparable basis, with 16% growth in personal insurance and 6% growth in commercial lines. Zaffino said commercial pricing in North America, excluding workers’ compensation, increased 9%, and global commercial pricing increased 8%, also excluding workers’ comp.

On Nov. 1, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ closed on the sale of Validus Re to RenaissanceRe. In July ÌìÃÀÍøÕ¾´«Ã½´«Ã½ closed the sale of Crop Risk Services (CRS) to American Financial Group for a pre-tax gain of $126 million. CRS results were not included in ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s Q3 earnings.

Topics Profit Loss ÌìÃÀÍøÕ¾´«Ã½´«Ã½