AIG has reported net income attributable to common shareholders of $2.02bn in the third quarter (Q3) of 2023, a decline of 26.3% from $2.74bn a year ago.

For the quarter that ended 30 September 2023, net income per diluted share attributable to the company’s common shareholders was $2.81 versus $3.55 last year.

The decline in profit was attributed to a drop in net realised gains, including and excluding Fortitude Re funds withheld assets as well as embedded derivatives.

Net investment income for the quarter was $3.55bn, a surge of 33% compared with $2.66bn a year earlier.

Adjusted pre-tax income was $1.87bn versus $920m in Q3 of last year.

Adjusted after-tax income (AATI) attributable to AIG common shareholders increased to $1.15bn from $644m in the same quarter a year ago.

AIG’s General Insurance underwriting income soared by 264% to $611m from $168m in the prior year quarter.

Net premiums written (NPW) in this segment stood at $6.46bn, up 1% year-over-year.

General insurance gross premiums written declined by 4% to $8.87bn from $9.23bn in the year-ago period.

The life and retirement segment’s adjusted pre-tax income was $971m, marking a 24% increase from $784m.

AIG chairman and CEO Peter Zaffino said: “Our continued attention to underwriting excellence and portfolio optimisation has manifested in outstanding results for general insurance.

“The general insurance combined ratio improved to 90.5%. The combined ratio included $462m of total catastrophe-related charges or 6.9 loss ratio points. Accident year combined ratio, as adjusted, of 86.3% represents an improvement of 210 basis points from the prior-year quarter.”

In a separate development, AIG has announced the completion of the sale of Validus Re to RenaissanceRe for a total cash consideration of $3.3bn, including the pre-closing dividend and $275m in RenaissanceRe common shares.