Profit more than doubled in the third quarter at insurance conglomerate
American International Group
, helped by the lack of catastrophic hurricanes this year.
In the third quarter, AIG made $4.22 billion, or $1.61 per share, compared to $1.75 billion, or 66 cents per share, a year earlier. The third quarter of last year included $1.57 billion, or 60 cents a share, worth of catastrophe-related losses.
AIG said that adjusted net income was $4.02 billion, or $1.53 per share, compared to $1.86 billion, or 71 cents per share, a year ago. Adjusted profit excludes hedging activities related to foreign exchange gains and losses that did not qualify under hedge accounting rules.
Revenue, at $29.2 billion and up 10.6% from a year ago, squeaked past analyst estimates. Analysts had pegged AIG to earn $1.42 a share on $29.1 billion of revenue.
Premiums from insurance policies rose 9.3%, to $18.8 billion, the company says. Net investment income rose 10.8%, to $6.3 billion.
The firm's largest division, general insurance, posted a 13% gain in revenue to $12.6 billion. AIG's financial services group posted revenue that jumped 65%, to $3.2 billion in the third quarter.
"AIG had a very good quarter led by strong performance in our worldwide general insurance business and improved results in life insurance & retirement services operations," the company says. "We continue to execute our growth strategies by capitalizing on our unique global franchise and product and distribution capabilities."
Shares of AIG rose 81 cents to $68.85 in after-hours trading.
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