Chartis pre-tax income climbs 300%

Chartis increased its pre-tax income by more than 300% during the first half of 2012 on the back of higher value lines of business and improved pricing trends.

The insurer, which has operations in the UK, boosted its pre-tax income to $1.9bn for the six months to 30 June 2012 from $452m for the same period in 2011.

For the second quarter, pre-tax income rose 16.3% to $961m from $826m for last year’s second quarter.

Parent company American International Group (AIG) also announced it will rename Chartis – its property casualty insurance operations - as AIG in the autumn, as reported by Insurance Times earlier this year.

AIG changed to the Chartis brand name in the wake of the financial crisis in 2009.

The insurer incurred catastrophe losses of $328m and net prior year adverse development of $117m, partially offset by favourable change in net reserve discount of $94m during the second quarter.

Combined ratio improved to 102.3% for the first half of the year from 111.1% a year earlier.

Net premiums written, however fell 2.3% to $17.9bn from $18.3bn over the same period.

AIG increased its after-tax income by 76.8% to $5.5bn in the first half of 2012 from $3.1bn last year.

AIG’s book value also rose 31.8% to $60.58 per share from $45.97 per share over the same period.

“AIG’s insurance operations and aircraft leasing business posted solid profits this quarter,” said AIG president and chief executive officer Robert Benmosche.

“The performance of our businesses and our stock price enabled the US government to continue to profitably reduce its outstanding assistance to AIG, which includes the US Department of the Treasury’s $5.7 billion AIG equity offering in May 2012.

“The Federal Reserve Bank of New York’s Maiden Lane III loan was also paid in full during the quarter. “We are proud of what we have accomplished and believe we are close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit.

“This fall, our property casualty insurance operations will return to the AIG name with Chartis renamed AIG. In addition, the SunAmerica Financial Group segment will be renamed AIG Life and Retirement.

“A rejuvenated and refocused AIG enables us to more fully integrate our global insurance operations, while continuing to build on our successes and respond to market and customer needs.”