American International Group UK has published its full-year 2019 financial results, marking the first full operational year as AIG UK, following a business restructure in December 2018.
The group reported a “strong” performance in its first full year of trading, with a pre-tax profit of £186.4m.
This was driven by a positive underwriting result of £44.9m, which benefited from low catastrophic losses, positive premium rate change, and underwriting and business mix actions. Investment income further improved pre-tax profit.
Net premiums written were £1.1bn, and net loss ratio was 67%. Net operating expenses were £364m, and the combined operating ratio was 96.4% following “robust” expense control and a “more positive” trend in losses.
As the first full-year results for AIG UK, prior years for the UK business are “embedded” in the predecessor company AIG Europe Limited and as such there are no prior year comparisons.
Anthony Baldwin, CEO of AIG UK, said: “During 2019 we made significant progress on the execution of our strategy to position AIG for sustainable profitable growth and delivered on our commitment to achieve a full year of underwriting profit.
“These results reflect critical foundational work to improve underwriting fundamentals, reposition our portfolio and aggressively decrease limits, while meaningfully reducing volatility through a comprehensive reinsurance strategy.”
He added: “We also instilled discipline and focus on expense management.
“Strong performance from our high growth lines as well as improvements in the underlying quality and profitability across all our lines of business demonstrated the significant work done to optimise our portfolio.”