American International Group Inc. on Wednesday reported net income of $1.13 billion for the second quarter of 2017, down 40.5% from the second quarter of 2016 as both premiums and investment income dropped.
Commercial insurance net premiums written fell 14.8% from the prior-year quarter to $3.83 billion, the insurer said in a statement after markets closed. “The decrease was related to continued execution on our strategic portfolio actions throughout the second quarter of 2017 and challenging market conditions,” the company said in its statement.
The combined ratio for commercial insurance deteriorated to 102.7% from 98.3% in the year-ago period.
The company said earnings were also affected by second-quarter net realized capital losses of $69 million compared with net realized capital gains of $1.04 billion a year ago.
“Our second-quarter results show the value of AIG’s diverse businesses and the opportunities we have to grow profitably,” Brian Duperreault, president and CEO, said in the statement.
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