AIG +7.6% after stunning Q1 beat

American International Group (NYSE:AIG) jumps 7.6% in after-hours trading after Q1 adjusted EPS of $1.58 surges past consensus estimate of $1.06 and improves from $1.04 in the year-ago quarter.

Q1 General Insurance achieved a combined ratio of 97.4 vs. 103.8 a year earlier, and an accident year combined ratio, as adjusted, of 96.1 vs. 99.7.

Q1 consolidated net investment income of $3.9B increased from $3.3B in the year-ago quarter, reflecting favorable market performance.

“General Insurance achieved an underwriting profit driven by underwriting and expense discipline, improved business mix and reinsurance actions,” said President and CEO Brian Duperreault. “We achieved an underwriting profit on a calendar year and accident year basis in the first quarter and we expect that to continue for the full year.”

Sees Life and Retirement continuing to deliver low-to-mid-teens adjusted ROCE and double-digit adjusted ROCE for consolidated AIG within three years.

Q1 adjusted ROCE of 11.6% vs. 7.7% in the year-ago quarter; core adjusted ROCE was 13.4% vs. 8.6%.

Adjusted book value per common share of $55.47 at March 31, 2019 fell from $56.10 at March 31, 2018.

Conference call on May 7 at 8:00 AM ET.

Previously: American International Group beats by $0.52, May 6, 2019