American International Group, the giant US insurer, was hit by the effects of Midwest floods, the earthquake in Guam and typhoons in Japan, and yet recorded a 33 percent increase in profits to $451 million during the third quarter of fiscal 1993.

The figure for the corresponding 1992 period was $338.9 million. For the first nine months of fiscal 1993, profit totalled $1.43 billion, an increase of 19.2 percent compared to $1.20 billion in the same period of 1992.

Pre-tax profit for the third quarter of 1993 amounted to $620 million, an increase of 41.5 percent over the $438.4 million reported in 1992.

Catastrophe losses during the third quarter and nine months of 1993 amounted to $47.3 million and $62.5 million, respectively.

This compares to $153.3 million and $175.5 million of catastrophe losses reported last year.

For the third quarter of 1993, profits per share were recorded at $1.42, compared to profits of $1.06 per share for the same period in 1992.

Revenues in the third quarter of 1993 rose 10.4 percent to $5.12 billion from $4.64 billion in the year earlier quarter. For the first nine months, revenues totalled $14.78 billion, an increase of 9.2 percent over $13.53 billion in 1992.

AIG chairman Mr. Maurice Greenberg said: "AIG had a good quarter in all our principal business segments. General Insurance operating income rose sharply, although the comparison with last year's third quarter is impacted by the major catastrophes of 1992.

"Excluding the catastrophes in both years, general insurance pre-tax profit was up 13.5 percent.

"For the nine months, AIG's general insurance operations achieved a new record in pre-tax profits of approximately $1 billion.

"In response to the high level of catastrophe losses in recent quarters, AIG has taken steps to reduce catastrophe exposures throughout our business and further tighten our underwriting standards.

"Significant additional capacity has entered the property catastrophe reinsurance market since last year, including approximately $4 billion of new capacity in Bermuda.

"This new capacity should assist in year-end catastrophe renewals. Even with this additional capacity, prices for catastrophe reinsurance should remain stable.

AIG has a 24.99 percent stake in Bermuda-registered IPC Holdings, parent of new property catastrophe reinsurer International Property Catastrophe Reinsurance (IPC Re).

AIG, together with General Re Corporation, has sponsored excess liability insurer Starr Excess. AIG holds a 23.9 percent shareholding in Starr Excess' parent Selic Holdings.

American International Company, a subsidiary of AIG, will provide administrative services to Starr Excess for an initial period of ten years.

A spokesman for IPC Re said all its underwriters and systems are now in place.

The reinsurer will move from its temporary offices in Melbourne House, Parliament Street to the American International Building, on Richmond Road by January 1. Excess liability carrier Starr Excess also in temporary quarters at Melbourne House, also plans to move to the American International Building in the first week of December.