American International Group reported net income rose nearly 30 percent in the first quarter compared to the same 2006 period.
The New York-based financial services giant reported net income of $4.13 billion, or $1.58 per diluted share, compared to $3.2 billion, or $1.22 per diluted share, for the first quarter of 2006.
Chairman Martin Sullivan told a conference call this morning that the Domestic Brokerage Group and Foreign General Insurance reported strong growth in operating income on excellent underwriting results.
The company reported general insurance first quarter operating income before realized capital gains increased 31.5 percent, to $2.98 billion, compared to the first quarter of 2006.
The combined ratio improved 1.6 points to 87.5.
Domestic Brokerage Group net premiums written increased 2.5 percent to $6 billion while the comparable personal lines figure increased 2.6 percent.
Mr. Sullivan also said on the conference call that AIG is in talks with Office of Thrift Supervision over loans made by its banking unit in the 2003-2006 period.
The talks, which could lead to pretax costs of $128 million, are happening "in light of evolving market and regulatory developments affecting non-prime mortgage lending," he said.
Morgan Stanley analyst William Wilt said the company beat his and the consensus operating earnings per share by $.13.
He termed the results a "strong start to 2007, though perhaps less robust than headline numbers suggest."
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