AIG’S NINE-MONTH INCOME DIPS 3.9%

New York-based AIG’s core p/c and life/retirement operations posted healthy gains for the first nine months on continued strong investment income and improved underwriting, but the group’s net income for the period fell 3.9% to $7.11bn as its “other operations” segment swung to an operating loss. The p/c segment saw pre-tax operating income rise 34%, as its underwriting loss narrowed to $129m from $838m and investment income increased 6.8% to $3.85bn. The combined ratio improved to 100.5% from 103.2%, as earned premiums fell 3.5% to $25.33bn and claims costs dropped 8.1% to $16.76bn. The life/retirement segment posted pre-tax operating income of $3.69bn, up 20.2%, on premiums of $1.99bn, up 8.7%, and investment income of $7.98bn, off 0.3%. The “other operations” segment swung to a pre-tax operating loss of $483m from income of $3.86bn owing in part to current-year declines in unrealized valuation gains in credit default swaps and year-earlier fair-value gains in the group’s stakes in AIA Group and the Maiden Lane III special purpose vehicle.