AIG reported a 25.7% rise in net income for the second quarter of 2004, up from $2.28bn in 2003 to $2.86bn in 2004.
Net income for the first six months of the year rose 30.4% to $5.52bn, compared with $4.32bn for the previous year.
For its general insurance operations, AIG reported net written premiums up 17.4% from $8.84bn to $10.38bn for the second quarter of the year.
AIG also reported a combined ratio of 92.35% for the second quarter, up slightly on the 92.27% reported for the previous year.
AIG chairman MR Greenberg said the company's general insurance operations had seen strong performance in both the US and worldwide markets.
“We have maintained a disciplined approach to pricing and risk selection. Where pricing, terms and conditions or loss experience did not meet our standards, we chose to non-renew approximately $275m in premiums in the domestic brokerage group as well as nearly $50m in our foreign general operations in the second quarter.
“While the market generally has taken a rational approach to pricing, a few foreign and domestic companies have under-priced certain more difficult classes of long tail lines of business.
“These companies often lack the specialised knowledge, underwriting skills and claim management expertise that these lines require. Such pricing practices unsettle the market and add to long term volatility.”
