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AIG Reports Lower Third-Quarter Net Income

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NU Online News Service, Oct. 25, 11:18 a.m. – American International Group Inc., New York, is reporting $327 million in net income for the third quarter on $16 billion in revenue, compared with $1.7 billion in net income on $14 billion in revenue for the third quarter of 2000.

Core income, which excludes $1.4 billion in unusual costs related to the Aug. 29 acquisition of American General Corp. and $900 million in charges related to the Sept. 11 attacks on the World Trade Center, increased to $1.9 billion, from $1.7 billion.

AIG life insurance operations generated $1.3 billion in operating income for the quarter on $13 billion in revenue, up from $1.2 billion in net income on $13 billion in revenue.

Domestic sales of fixed annuities and sales of variable annuities in Japan were especially strong, AIG says.

The domestic life operations brought in less revenue from life insurance, but more revenue from annuities, pensions and investment products, AIG says.

Domestic life unit revenue from annuities and pensions increased 12%, to $4.3 billion.

International life insurance revenue increased 23%, to $3.8 billion.