AIG profit beats on strong underwriting, investment income

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Insurer American International Group Inc beat Wall Street estimates for quarterl...

) beat Wall Street estimates for quarterly profit on Wednesday, boosted by improved underwriting in general insurance business and higher investment income, sending its shares up 3% in extended trading.

The general insurance business reported its first underwriting profit last quarter since 2007, when it was hit by the financial crisis. AIG’s acquisitions under Duperreault of reinsurer Validus and insurance program manager Glatfelter Insurance Group contributed to the better ratio, along with improvements to new business, renewal terms and use of reinsurance, the company said.

Gross premiums in the general insurance business remained steady at $8.65 billion from the year-ago period.

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