Printer Friendly

AIG REPORTS FIRST QUARTER 1993 NET INCOME ROSE 12.8 PERCENT

 NEW YORK, April 29 /PRNewswire/ -- American International Group, Inc. (NYSE: AIG) today reported that its net income for the first quarter of 1993 increased 12.8 percent to $495.9 million from $439.6 million in 1992.


Following is a summary table of first quarter information (in millions, except per share amounts):
 AMERICAN INTERNATIONAL GROUP, INC.
 FIRST QUARTER
 1993 1992
 Net income, as reported $495.9 $439.6
 Income, as adjusted(a) $452.7 $390.9
 PER SHARE RESULTS:
 Net income, as reported $ 2.34 $ 2.06
 Income, as adjusted(a) $ 2.13 $ 1.83
 Average shares outstanding 211.7 212.2
 (a) -- Adjusted to exclude cumulative effect of accounting changes and realized capital gains, net of taxes.
 Income before income taxes and the cumulative effect of accounting changes for the first quarter of 1993 amounted to $640.3 million, an increase of 17.2 percent over the $546.2 million reported in 1992. Included in these results were pretax realized capital gains of $34.6 million and $28.0 million in 1993 and 1992, respectively.
 Net income for the first quarter of 1993 included a net benefit of $20.7 million for the cumulative effect of accounting changes related to the adoption by AIG's minority-owned reinsurance operations of accounting pronouncements for postretirement benefits (FASB 106) and income taxes (FASB 109). In 1992 net income reflected a $31.9 million net cumulative benefit associated with the adoption of these pronouncements by AIG.
 Revenues in the first quarter of 1993 rose 6.4 percent to $4.64 billion from $4.36 billion in the year-earlier quarter. At March 31, 1993, AIG's consolidated assets approximated $88 billion, adjusted to reflect the adoption in the first quarter of FASB 113, which requires the gross up of assets and liabilities related to reinsurance transactions. Capital funds approximated $13.4 billion at March 31.
 Commenting on these results, AIG Chairman M.R. Greenberg said, "AIG had a good first quarter. Total operating income, before realized capital gains and income taxes, was up 16.9 percent over last year's first quarter, as every principal business showed improvement. In spite of several catastrophes, notably the World Trade Center bombing and the March East Coast storm, we achieved reasonable results in our domestic general insurance operations.
 "Our foreign general insurance business was excellent in the quarter, and our worldwide life insurance business again posted strong results, with a 16.2 percent gain in operating income over last year's quarter. Each of the principal components of our financial services group also did well, with operating income for the group rising by 38.1 percent over last year.
 "We achieved a combined ratio of 99.56, versus 100.08 in 1992's first quarter. New Hampshire Insurance Company showed better operating results as the benefits of its restructuring and new brokerage-based distribution strategy began to be realized. Our risk management business also did well, and United Guaranty Corporation, our mortgage guaranty insurance subsidiary, had record results.
 "We are achieving pricing increases in our property business, and expect this trend to continue. On the casualty side of our business, pricing has improved in specialty classes, and as previously reported, we are also continuing to achieve price increases in Europe.
 "In our life insurance business, our overseas companies turned in strong results, particularly in Southeast Asia. Our domestic life companies continued to implement their new distribution system with the opening of their first career agencies and the expansion of their regional brokerage offices.
 "The performance of our financial services businesses continues to be very strong. International Lease Finance Corporation had an excellent quarter and announced the lease of 32 new jet aircraft to ten airline customers, including four aircraft to China, its first lease transaction in China. AIG Trading Corporation posted a strong gain in operating income and AIG Financial Products Corp. also performed very well.
 "AIG's cash flow is strong, and we hold the highest ratings from the principal rating services. During the quarter we added $178 million to our general insurance net loss and loss adjustment reserves, bringing the total of such net reserves to $16.9 billion at March 31. This net addition is inclusive of a reduction in loss reserves of $50 million for New Hampshire Insurance Company, and a corresponding increase in paid losses, resulting from the downsizing of its operations."


GENERAL INSURANCE
 General insurance pretax income before realized capital gains for the first quarter of 1993 increased by 14.1 percent to $351.8 million, compared to $308.2 million last year.
 Worldwide general insurance net premiums written in the first quarter of 1993 amounted to $2.44 billion, 7.9 percent ahead of the $2.27 billion reported last year. AIG's continued strategy of exiting unprofitable lines of business reduced net premiums written by approximately $100 million in the quarter.
 General insurance net investment income rose 7.0 percent to $330.7 million in 1993 from $308.9 million last year.


LIFE INSURANCE
 AIG's worldwide life insurance operations reported first quarter 1993 pretax income before realized capital gains of $164.5 million, an increase of 16.2 percent, compared to $141.5 million last year. Life insurance premium income increased 17.7 percent in the quarter to $1.25 billion from $1.07 billion in 1992.
 Life insurance net investment income rose 13.3 percent to $349.2 million for the first quarter of 1993, compared to $308.3 million for the same period last year.


FINANCIAL SERVICES
 Financial services pretax operating income increased 38.1 percent to $86.2 million in the first quarter of 1993, compared to $62.4 million in the same period last year. All three principal components of this group, International Lease Finance Corporation, AIG Financial Products Corp. and AIG Trading Corporation, had improved results over the prior year's quarter.


OTHER OPERATIONS
 Agency and service fee pretax operating income for the first quarter of 1993 was $16.0 million, compared to $14.6 million last year.
 AIG's equity in the income of Transatlantic Holdings, Inc., a reinsurance holding company in which AIG owns a minority interest, amounted to $29.6 million, including $20.7 million related to the cumulative effect of accounting changes, compared to $8.2 million in the first quarter of last year.
 AIG is the leading U.S.-based international insurance organization and the nation's largest underwriter of commercial and industrial coverages. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
 AMERICAN INTERNATIONAL GROUP, INC.
 Financial Highlights
 (in thousands, except per share amounts)
 Three months ended March 31 1993 1992 Pct.chg.
 General Insurance Operations:
 Net Premiums Written $ 2,443,810 $2,265,786 7.9
 Net Premiums Earned 2,237,588 2,305,193 (2.9)
 Adjusted Underwriting
 Profit (Loss) 21,134 (697) --
 Net Investment Income 330,656 308,937 7.0
 Income before Realized
 Capital Gains 351,790 308,240 14.1
 Realized Capital Gains 24,701 21,121 --
 Operating Income $ 376,491 $329,361 14.3
 Loss Ratio 80.23 80.06
 Expense Ratio 19.33 20.02
 Combined Ratio 99.56 100.08
 Life Insurance Operations:
 Premium Income $ 1,254,309 $1,066,048 17.7
 Net Investment Income 349,222 308,348 13.3
 Income before Realized
 Capital Gains 164,474 141,501 16.2
 Realized Capital Gains 13,090 14,139 --
 Operating Income 177,564 155,640 14.1
 Financial Services Operating Income 86,191 62,405 38.1
 Agency and Service Fee Operating
 Income 16,015 14,619 9.5
 Equity in Income of Minority-Owned
 Reinsurance Operations 8,887 8,155 9.0
 Other Income (Deductions) - net (19,512) (20,013) --
 Foreign Exchange Gains (Losses) (2,133) 3,222 --
 Other Realized Capital
 Gains (Losses) (3,232) (7,239) --
 Income before Income Taxes and
 Cumulative Effect of
 Accounting Changes 640,271 546,150 17.2
 Income Taxes 165,045 138,447 --
 Income before Cumulative Effect of
 Accounting Changes 475,226 407,703 16.6
 Cumulative Effect of
 Accounting Changes (a):
 AIG -- 31,941 --
 Minority-Owned Reinsurance
 Operations 20,695 -- --
 Net Income $ 495,921 $439,644 12.8
 Per Share (b):
 Income before Cumulative
 Effect of Accounting Changes $2.24 $1.91 17.3
 Cumulative Effect of
 Accounting Changes:
 AIG -- 0.15 --
 Minority-Owned Reinsurance
 Operations 0.10 -- --
 Net Income $2.34 $2.06 13.6
 Average Common Shares
 Outstanding 211,656 212,216
 (a) -- Represents a net benefit for the cumulative effect of the adoption of accounting pronouncements related to postretirement benefits (FASB 106) and income taxes (FASB 109) by minority-owned reinsurance operations in 1993 and by AIG in 1992.
 (b) -- After deduction in the first quarter of 1993 and 1992 of preferred stock dividends of $0.8 million and $1.4 million, respectively.
 -0- 4/29/93
 /CONTACT: Charlene M. Hamrah (investment community), 212-770-7074, or Joe Norton (news media), 212-770-3144, both of American International Group, Inc./
 (AIG)


CO: AIG International Group, Inc. ST: New York IN: INS SU: ERN

TS -- NY015 -- 2479 04/29/93 09:12 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1993
Words:1541
Previous Article:CHEMICAL STAGES BIGGEST BLITZ IN BANKING HISTORY; 1,000-PLUS BANKERS CALL ON SMALL BUSINESSES IN FIVE STATES
Next Article:LEGGETT & PLATT REPORTS RECORD FIRST QUARTER RESULTS
Topics:


Related Articles
AIG REPORTS SECOND QUARTER 1992 NET INCOME OF $425.6 MILLION
AIG REPORTS THIRD QUARTER 1992 NET INCOME OF $344.6 MILLION
AIG REPORTS SECOND QUARTER 1993 NET INCOME ROSE 14.8 PERCENT
AIG REPORTS THIRD QUARTER 1993 NET INCOME OF $451 MILLION
AIG REPORTS 1993 NET INCOME ROSE 17.0 PERCENT TO RECORD $1.94 BILLION
AIG REPORTS FIRST QUARTER 1994 NET INCOME ROSE TO $505.6 MILLION; PRETAX INCOME EXCLUDING CATASTROPHE LOSSES INCREASED 13.2 PERCENT
AIG REPORTS THIRD QUARTER 1994 NET INCOME ROSE 20.3 PERCENT
AIG REPORTS 1994 NET INCOME ROSE TO RECORD $2.18 BILLION
AIG REPORTS SECOND QUARTER 1995 NET INCOME ROSE 15.3 PERCENT TO $633.8 MILLION
AIG REPORTS FIRST QUARTER 1996 NET INCOME ROSE 17.3 PERCENT TO $671.2 MILLION

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters