American International Group Inc. Thursday reported that its second-quarter net income rose 25.7%, to $2.86 billion; excluding realized capital gains or losses, profits rose 19.2%, to a record $3 billion.
General insurance operating income, excluding realized capital gains or losses in the quarter, grew 22.8%, to $1.59 billion. Net premiums written were $10.38 billion, up 17.4% from the year earlier.
Operating income before realized capital gains or losses for worldwide life insurance and retirement was $2.17 billion, an increase of 18.2%. Premiums, deposits, and other considerations totaled $16.28 billion, up 40.2%.
Domestic life insurance and retirement services operating income, excluding realized capital gains or losses, totaled $953.5 million in the quarter, an increase of 12.4%. Premiums, deposits, and other considerations were $7.29 billion, a 24.1% increase.
The company said its domestic life operations had strong universal and term life sales and good performance from the independent distribution segment. However, the group business fell below growth standards, it said, and AIG decided not to renew several accounts where pricing was unacceptable.
Asset management operating income rose 41.4%, to $276.5 million. Improved equity markets and a strong and diverse global product portfolio contributed to these results, as well as to a $1 billion increase in assets under management, bringing the total to more than $49 billion, the company said.
