The news follows a number of positively economic reports for the insurance industry for Q!, showing market leaders rallying despite the economic downturn, and even new growth in insurtech investment.
Data shows that in Q1 of 2023, AIG has experienced a 5% YoY increase in net premiums written (NPW) to nearly $7 billion.
Based in New York and founded in 1919, AIG is one of the largest insurers in the world. It offers a wide range of insurance products including life, property, casualty, and financial services. It operates in more than 80 countries and has over 50,000 employees worldwide.
The company has had a tumultuous history, including a government bailout during the 2008 financial crisis, which required a $182 billion rescue package from the US government. In recent years, AIG also restructured and refocused its business on core operations, including general insurance and life and retirement services.
Financial growth for AIG’s YoY performance
AIG’s CEO Peter Zaffino lauded the recent performance, which saw General insurance’s combined ratio rose slightly to 92.9 compared to 91.9 in Q1 2022. Zaffino commented that “our strategy in general insurance of focusing on underwriting excellence and volatility management enables sustainable growth and underwriting profitability over the long-term.”
However, AIG’s net income for Q1 was $23 million, down significantly from $4.2 billion in the same period last year, due primarily to net realised losses on Fortitude Re funds, Bermuda’s largest multi-line composite reinsurer.
Zaffino added that Validus and Lexington led North American commercial lines NPW growth, achieving 14% growth to $3.37 billion. In addition, excluding workers compensation, North America and International commercial rates increased by 8% in Q1, surpassing loss costs.
