AIG recorded net income of $US462 million ($604.1 million) in the third quarter, overturning a $US231 million ($302 million) loss in the corresponding period last year.

The US insurer’s improved results was aided by a 59% rise in after-tax operating income to $US1.1 billion ($1.43 billion) in the three months to September 30, despite absorbing an after-tax net realised capital loss of $US526 million ($687.73 million).

That capital loss largely reflects foreign exchange losses related to the weaker UK pound after the Brexit vote.

AIG’s board has authorised a $US3 billion ($3.92 billion) increase to its common share buyback scheme.

“We are successfully shaping and sculpting our company to be a leaner and more focused insurer,” President and CEO Peter Hancock said.

“We continue to execute on the strategic initiatives announced in January.”

In January AIG also committed to return at least $US25 billion ($32.69 billion) of capital to shareholders.

It aimed to reduce expenses by $US1.6 billion ($2.09 billion) within two years.

Its commercial insurance arm’s pre-tax operating income grew 23% to $US729 million ($953.13 million) in the third quarter, bolstered by higher investment income and improvement in accident-year losses.

The expense ratio for commercial insurance improved to 27.6% from 29.5%.