AIG’s general insurance arm performed strongly in the third quarter, lifted by a 17% rise in its commercial lines business, the insurer says in an earnings release.

The insurer made an overall net income of $US1.66 billion ($2.3 billion) in the three months to September, up sharply from $US281 million ($383 million) a year earlier.

The general insurance business achieved $US811 million ($1.1 billion) in adjusted pre-tax income, almost doubling from $US416 million ($568 million).

Gross written premium during the period increased 13% to $US9.3 billion ($12.7 billion) while the combined ratio improved 7.5 percentage points to 99.7% due to strong underwriting results, including lower catastrophe losses, net of reinsurance and reinstatement premiums.

“Against the backdrop of a very active [catastrophe] season and the ongoing global pandemic, AIG colleagues demonstrated continued resilience and are performing at a high level delivering value to our stakeholders and excellence in all that we do,” President and CEO Peter Zaffino said.

“General insurance delivered very strong results demonstrating the underwriting discipline now embedded in our culture and the benefits of our volatility reduction efforts through a well-articulated risk appetite and reinsurance program that performed well.”

AIG says the commercial lines underwriting results continued to show strong improvement due to improved business mix and premium growth along with continued rate increases.

North America commercial lines reported an 18% rise in net premium written to $US2.58 billion ($3.5 billion) and international commercial lines 15% to $US2.07 billion.

General insurance underwriting income reached $US20 million ($27 million), reversing the year-earlier loss of $US423 million ($577 million).

AIG says the underwriting income included $US628 million ($857 million) of catastrophe loss events, predominantly from Hurricane Ida and the floods in the UK and Europe.

“Despite the elevated level of global catastrophic activity in the third quarter… AIG’s losses were mitigated by improved underwriting and enhanced reinsurance protections,” the insurer said.