American International Group has reported a 26% jump in second-quarter profit after the company increased the cost of its premiums on property and casualty coverage.
The company, the world's largest insurer, posted net income of $2.28bn, up from $1.8bn in the same period last year.
The figures for the quarter also show a reduction in investment losses to $243.4m from $412.2m this time last year. Excluding those items, earnings rose 14% to $2.52bn.
Premium increases of as much as 40% on casualty coverage helped lift revenue 19% to $19.9bn. The company's AAA credit rating enabled it to charge higher prices as customers sought financial security.
William Batcheller, a fund manager at National City Investment Management, which holds AIG shares, said: "They can say: 'Here's what I'm going to charge you.'"
