April 30 (Reuters) - Insurer AIG posted a sharp rise in quarterly adjusted profit on Thursday, driven by strong underwriting and a steep decline in catastrophe-related losses from a year earlier when the industry was hit by claims from the Los Angeles wildfires.
The New York-based company - one of the world's largest commercial insurers - said general insurance underwriting income more than tripled to $774 million in the first quarter, while catastrophe-related charges plunged 66% to $180 million.
Peer Travelers also exceeded analysts' expectations for first-quarter profit earlier this month, as blazes in key states such as California have been markedly lower than a year earlier.
Nevertheless, U.S. wildfires remain a key risk for the remainder of the year as they typically intensify in the summer months.
Insurance spending has stayed robust as households and businesses continue to prioritize coverage in response to heightened economic uncertainty and geopolitical risks, particularly from the conflict in the Middle East.
"Looking ahead, we are confident in our ability to navigate an increasingly complex global risk landscape while continuing to deliver disciplined, profitable growth...," Peter Zaffino, who will step down in mid-2026 after nearly five years at the helm, said in a statement.
He added AIG was on track to meet or exceed its financial objectives for 2026. The firm also increased its quarterly dividend to 50 cents per share.
The company's adjusted after-tax income attributable to common shareholders was $1.15 billion, or $2.11 per share, in the three months ended March 31, compared with $702 million, or $1.17 per share, a year earlier.
AIG's net investment income, on an adjusted pre-tax income basis, rose 8% to $915 million.
(Reporting by Rishab Shaju and Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila)
