American International Group Inc, the global insurance powerhouse with operations in more than 80 countries and jurisdictions including Bermuda, has reported third quarter net income attributable to AIG common shareholders of $459 million.

That compares with $2 billion in the prior year quarter.

The company said the decrease was primarily attributable to a reduction in net income from discontinued operations as a result of the change in accounting following the de-consolidation of Corebridge, whose consolidated results were included in the prior year quarter.

AIG chairman and chief executive Peter Zaffino said: “AIG delivered excellent third quarter financial results with strong profitability and growth across our businesses highlighting the quality of the underwriting portfolio and our ability to deliver consistent earnings.

“The adjusted after-tax income per diluted share was $1.23 for the third quarter, an 18 per cent increase year-over-year, or 31 per cent on a comparable basis.

“These results demonstrate AIG’s ability to consistently deliver underwriting excellence and capital management discipline and the successful execution of our priorities.”

He added: “We achieved meaningful growth this quarter, led by our Global Commercial business. Third quarter net premiums written grew 6 per cent year-over-year on a comparable basis, driven by 7 per cent growth in Global Commercial Lines, which maintained very strong retention of 88 per cent while adding $1.1 billion of new business.

“North America Commercial Lines achieved 11 per cent growth with new business growth of 22 per cent, led by Lexington Insurance which grew 24 per cent.”

He added: “We marked another quarter of excellent underwriting results, building on top of outstanding performance over the past few years. The third quarter accident year combined ratio, as adjusted was 88.3 per cent, demonstrating our underwriting discipline.

“The total catastrophe-related charges were $417 million for the quarter, representing 6.9 loss ratio points, and 4.9 points for the first nine months of the year. In a challenging catastrophe environment, this performance is remarkable, with industry insured losses expected to top the 2023 total of $125 billion.”

Total net investment income for the third quarter was $973 million, an increase of 14 per cent from $856 million in the prior year quarter.