Insurer American International Group Inc (NYSE: AIG) posted better-than-expected first-quarter earnings on Monday after the company’s general insurance sector reported its underwriting profit.
AIG’s shares rallied around 6% after CEO Brian Duperreault stated he believes the company will report an underwriting profit for the full year.
The general insurance business’ profit was $179 million in the first quarter, as opposed to the underwriting drop of $251 million in 2018.
The company’s chief executive and his subordinates have reached out to its workforce telling them to be more selective when choosing clients and revise profitless policies. The insurance corporation has also invested more in reinsurance to recover from losses on old business.
AIG’s adjusted net profits climbed to $1.39 billion ($1.58 per share) in the Q1, significantly higher than $963 million, or $1.04 per share, in the year-ago period.
The company beat the consensus estimates of $1.06 per share, as reported by Refinitiv.