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The formal split of its life and retirement business Corebridge Financial resulted in a second quarter net loss of nearly $4 billion for American International Group (ÌìÃÀÍøÕ¾´«Ã½´«Ã½).

The deconsolidation and divestitures from last year affected ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s general insurance underwriting income, which declined 28% from $594 million for the second quarter 2023 to $430 million this year. However, on a comparable basis—adjusting for the sale of Crop Risk Services and the sale of Validus Re in 2023—ÌìÃÀÍøÕ¾´«Ã½´«Ã½ said underwriting income was up 2%.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s general insurance combined ratio for the quarter was 92.5, up from 90.9 in Q2 2023. Net premiums written (NPW) in the second quarter declined 8% to $6.9 billion but were up 7% on a comparable basis. Commercial lines NPW increased 8%. North America commercial lines NPW grew 10% on a comparable basis, driven by 16% growth in excess & surplus unit Lexington.

“We are very pleased with the ongoing improvement in our underwriting income, record commercial lines new business of $1.3 billion, and very strong retention,” said ÌìÃÀÍøÕ¾´«Ã½´«Ã½ CEO Peter Zaffino. “Against the backdrop of an increasingly uncertain global risk environment, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ delivered sustainable earnings growth driven by our focus on underwriting excellence and continued expense discipline.”

North America personal insurance saw NPW grow 8% year-over-year thanks to ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s high-net-worth business. The segment took a Q2 2024 underwriting loss of $28 million compared to a loss of $51 million a year ago. The combined ratio for personal lines in North America improved to 105.3 from nearly 113 in Q2 2023.

NPW for international commercial and personal lines grew 6% and 3%, respectively, on a comparable basis.

Catastrophe losses overall were $325 million. Convective storms in the U.S. accounted for most of $156 million in catastrophe losses in North America. About $169 million in cat losses were booked internationally.

Favorable prior-year development for Q2 in General Insurance was $79 million compared to $115 million the prior year.

Topics Profit Loss Underwriting ÌìÃÀÍøÕ¾´«Ã½´«Ã½