International insurer American Worldwide Group reported robust fourth quarter and year-end outcomes led by the efficiency of its Basic Insurance coverage enterprise.
After reporting a internet lack of $60 million within the fourth quarter of 2020, the corporate reported internet earnings of $3.74 billion within the newest fourth quarter. Full yr 2021 internet earnings was $9.4 billion, in comparison with a internet lack of $6.0 billion within the prior yr.
Basic Insurance coverage, which incorporates property/casualty business and private traces enterprise, closed the fourth quarter with underwriting earnings of $499 million, after reporting a $171 million underwriting loss for a similar quarter 2020.
AIG Chairman and CEO Peter Zaffino famous that Basic Insurance coverage produced “extra constant underwriting outcomes” whereas attaining 13% internet premiums written progress for the complete yr. That included 18% progress in Industrial Traces. Zaffino credited “wonderful high line progress and vastly lowered volatility attributable to gross restrict reductions and the strategic use of reinsurance.”
Basic Insurance coverage generated a mixed ratio of 92.4, a ten.4 level lower from 102.8 within the prior yr quarter. The development displays decrease disaster losses and general robust underwriting outcomes. Catastrophes together with tornadoes and wildfires value $189 million within the fourth quarter of 2021 — down significantly from the fourth quarter of 2020 when disaster losses have been $545 million.
Basic Insurance coverage internet premiums written within the fourth quarter of 2021 elevated 7% from the prior yr quarter pushed by progress of 11% in North America Industrial Traces and 15% in Worldwide Industrial Traces. The corporate stated these outcomes have been attributable to incremental charge enchancment, greater renewal retentions and excessive ranges of recent enterprise manufacturing.
Industrial Traces underwriting outcomes improved attributable to higher enterprise combine and internet premiums written progress of 13% together with continued charge will increase, in keeping with the corporate. The accident yr mixed ratio for North America Industrial Traces improved 4.7 factors to 88.9, and for Worldwide Industrial Traces improved 2.5 factors to 86.7 in comparison with the prior yr quarter.
North America Private Insurance coverage internet premiums written grew 18%, reflecting a rebound in journey exercise and decrease reinsurance cessions. Worldwide Private Insurance coverage internet premiums written decreased 9% in comparison with the prior yr quarter primarily attributable to underwriting actions taken to enhance the portfolio combine and charge adequacy
Private Insurance coverage underwriting outcomes additionally improved. The North America Private Insurance coverage accident yr mixed ratio improved 7.7 factors to 94.9 in comparison with the prior yr quarter whereas the Worldwide Private Insurance coverage accident yr mixed ratio was unchanged at 94.1.
Relating to the Life and Retirement enterprise, Zaffino stated that the corporate had made “important progress in making ready the enterprise to be an unbiased, standalone firm.” AIG offered a 9.9% fairness stake within the unit to Blackstone Inc. for $2.2 billion in November final yr.
For the fourth quarter, Life and Retirement elevated annuity gross sales and loved the favorable impression of fairness markets on each the funding portfolio and charge earnings. Adjusted pre-tax earnings elevated 10.8% within the full yr and return on adjusted phase frequent fairness remained robust at 14.2%.
AIG joins different giant carriers, Vacationers and The Hartford, in reporting improved fourth quarter outcomes.
Vacationers reported a quarterly revenue of $1.3 billion, a rise of $23 million and a report for the fourth quarter. The Hartford boosted internet written premiums by 10% over final yr’s fourth quarter to a report of $7.995 billion. For the quarter, Vacationers achieved a consolidated mixed ratio of 88.0.
Web earnings on the The Hartford for the fourth quarter 2021 ended at $729 million, a 36% improve from earnings of $537 million the identical interval a yr earlier. The insurer’s business traces phase grew internet earnings to $702 million within the fourth quarter – a 47% improve from the prior yr. These constructive outcomes offset 52% and 46% drops in fourth-quarter and yearly earnings to $81 million and $385 million, respectively, within the private traces phase.
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