American International Group Inc reported a slump in third-quarter profit, hurt by losses related to storms, wildfires and the Covid-19 pandemic.

Net income attributable to common shareholders fell to $281 million, or 32 cents per share, from $648 million, or 72 cents per share, a year ago.

Its underwriting loss was $423 million in its general insurance business for the quarter, compared with a loss of $249 million a year earlier.

The unit reported $790 million in catastrophe losses, before tax, including coronavirus-related losses of $185 million, following windstorms and tropical storms in the Americas and Japan, as well as wildfires in the US West Coast.

Brian Duperreault, AIG’s chief executive officer, said: “We are pleased to report AIG’s solid third quarter results as we embark on an important phase of our journey to become a top performing company.

“In general insurance, the accident year combined ratio, as adjusted, improved for the ninth consecutive quarter, and the high frequency of natural catastrophes and Covid-19 had a limited impact on financial results.”

He added: “Life and retirement’s results continue to demonstrate that it is a market-leading franchise, with a strong improvement in adjusted pre-tax income from last year. Our recent leadership transition and corporate structure announcements marked an important milestone for AIG made possible by the significant foundational work our colleagues have successfully executed on over the last three years.”

The company's adjusted general insurance accident year combined ratio, was 93.3, compared with 95.9 year-on-year. A ratio below 100 means the insurer earns more in premiums than it pays out in claims.

AIG’s board has approved a plan to separate the life and retirement business from the rest of the company, and has named president Peter Zaffino as its next CEO, effective next year.