American International Group (NYSE:AIG) posted stronger-than-expected first-quarter earnings, supported by robust growth in its commercial insurance segment, which helped counter heavy catastrophe losses from California wildfires.
The insurer reported adjusted earnings of $1.17 per share, exceeding analyst expectations of $0.99. However, net income dropped to $698 million, or $1.16 per share, from $1.19 billion, or $1.74 per share, a year ago—reflecting the financial impact of recent natural disasters.
Total net premiums written remained flat year-over-year at $4.5 billion, but rose 8% on a comparable basis. AIG’s Global Commercial segment saw notable strength, with premiums up 10% to $3.2 billion, driven by 14% growth in North America and 8% internationally.
The General Insurance segment posted a combined ratio of 95.8%, up from 89.8% a year earlier. The deterioration was largely attributed to $525 million in catastrophe-related losses, including $460 million tied to January’s wildfires in California.