AIG Earnings Review: How Did The P&C Insurance Division Perform In Q1?

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AIG (NYSE:AIG) reported its Q1 2016 results on Monday. In the Property and Casualty division, total revenue declined by 10% year-over-year to $6.2 billion and pre-tax segment operating income declined by 39% to $889 million on lower investment income. The accident year combined ratio – the ratio of claims and expenses paid to premiums earned – improved marginally from 93.4% in Q1 2015 to 93.2% in Q1 2016, as higher catastrophic losses (due to windstorms and hailstorms in the Americas) were offset by a lower expense ratio. Net premiums written in the division decreased by 2% y-o-y in the quarter. The table below provides an overview of the results.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for AIG
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