Growth in all sectors propelled the 3rd quarter earnings of American International Group to new highs as it posted an operating profit of $1.41 billion, a 15 percent increase over 1999 figures, meeting analysts forecasts.
Chairman Maurice Greenberg said that improved premium pricing and strong overseas growth coupled with good results in the financial services sector all contributed to the increases.
AIG also improved its combined ration from 96.56 percent a year ago to 96.25 percent in the quarter reflecting its conservative underwriting policies.
The stock market, however, reacted negatively to Greenberg’s comments concerning the necessity for continued consolidation in the insurance industry, and AIG’s intentions to look for new acquisitions. Analysts fears that this would dilute shareholder value sent the stock down 7 percent in Thursday’s trading.
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