AIG profit beats estimate on strong underwriting & cost cut, shares soar

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AIG profit beats estimate on strong underwriting & cost cut, shares soar

On Monday, the 6th of May 2019, the US-based multinational insurer, headquartered in New York, American International Group Inc. had reported its first quarterly earnings, that lambasted analysts’ estimate by a wide margin, as the company’s general insurance business had posted its first underwriting profit since the era of financial crisis between 2008-2009.

Shares of AIG surged more than 6 percent during Monday’s (May 6th) morning trading hours, after the company’s Chief Executive, Brian Duperreault had said that the multinational New York-based insurer would more likely to post an underwriting profit for the entire year.

Underwriting income of AIG’s general insurance unit had been $179 million over the last quarter, while it had posted an underwriting loss of roughly $251 million a year earlier. According to AIG’s quarterly earnings report, the American Insurer’s adjusted income had been doubled to $1.27 billion over the latest quarter of the year.

AIG CEO Duperreault, who took the office back in May 2017, had been centering the company’s focus more onto an overhaul of its underwriting culture, while the CEO alongside his deputies had been telling the staffs to become more selective about clients and to revise unprofitable policies.

AIG CEO’s overhauling attempt had played its parts well enough, as the loss-making company’s net income had surged to $1.39 billion or $1.58 per share during the first quarter of 2019, while Wall Street’s analysts had been expecting a profit of $1.06 per share.