AIG Q3 net premiums written rise on commercial, personal insurance growth

Overview

• US insurer's Q3 net premiums written rose 7% yr/yr

• Adjusted after-tax income per share declined yr/yr

• Company returned $787 mln to shareholders via buybacks and dividends

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• PREMIUM GROWTH - Co said higher net premiums written were driven by growth in Global Commercial and Global Personal Insurance

• INVESTMENT INCOME - Higher net investment income, mainly from fixed income portfolio, contributed to results

• UNDERWRITING PRESSURE - Higher catastrophe losses and lower favorable prior-year development reduced underwriting income, partly offset by higher earned premiums and strong accident-year results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold"

• Wall Street's median 12-month price target for American International Group, Inc. is $87.50, about 6.2% above its November 2 closing price of $82.40

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise

• Nov 3 - Bowhead Q3 profit beats estimates on divisional premium growth

• Nov 2 - CBIZ Benefits & Insurance Services launches as New Mountain-backed standalone company

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)