AIG’s general insurance business reported $458m of estimated COVID-19 losses for the quarter ended 30 June – although impacts from the pandemic will be manageable, according to the insurer.
“We are effectively navigating the current complex environment due to the strong foundation we built over the last three years. While unprecedented and ongoing, COVID-19 remains an earnings, not a capital, event for AIG,” said AIG CEO Brian Duperreault.
In general insurance, $674m of pre-tax CATs, net of reinsurance, was reported for the insurer.
Meanwhile, its life and retirement business reported adjusted pre-tax income of $881m. This was a decrease of $168m compared to the prior-year quarter and driven by private equity losses, continued spread compression and elevated mortality related to COVID-19.
“In general insurance, the underlying underwriting profitability improvement was driven by our focus on portfolio remediation and expense discipline. Life and retirement benefited from its diversification and agility, and continues to meet client needs despite an uncertain economic environment,” said Mr Duperreault.
In spite of the pandemic, AIG also increased its financial flexibility ending the second quarter with over $10bn in liquidity.