AIG has reported a second quarter 2005 net income of $3.99bn compared to $2.65bn in the second quarter of 2004.

Net income for the first six months of 2005 was $7.68bn compared to $5.21bn in the first six months of 2004.

Martin Sullivan, AIG president and chief executive, said: “In a quarter where the company devoted significant time and attention to its internal review, our operations stayed focused on their customers and business, achieving good results."

On a sector by sector basis, AIG reported a 20.5% increase in operating income in its general insurance division before realised capital gains (losses) compared to the second quarter of 2004, with a combined ratio of 92.04%.

The domestic brokerage group had a combined ratio of 96.05%, and the foreign general combined ratio was 82.04%. Domestic personal lines reported premium growth of 7.5% and a combined ratio of 95.92%

General Insurance cash flow was $2.71bn and $6.21bn in the second quarter and first six months of 2005, respectively. Pre-tax third quarter 2005 losses arising from hurricanes Emily and Dennis are estimated to be $40m.

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