Insurer AIG beats second-quarter profit estimates on robust underwriting

After-tax adjusted profit rose 10% to $2 per share in the second quarter, comfortably beating Wall Street expectations of $1.92, according to estimates compiled by LSEG.

AIG, one of the world's largest commercial insurers, said it returned $904 million of capital to shareholders in the second quarter.

Last month, property and casualty insurance giant Travelers TRV.N also swept past Wall Street estimates for second-quarter profit thanks to lower catastrophe losses and robust investment income.

Aug. 6 (Reuters) - Insurance giant AIG beat analysts' estimates for second-quarter profit on Thursday, as strong underwriting gains helped cushion an uptick in catastrophe-related claims.

Insurers have had an upbeat first half as higher premiums and disciplined underwriting have better positioned them to weather catastrophe losses.

"Strong quarterly results demonstrate our ability to perform well in the current market, which has transitioned from an extended phase of broad positive pricing into a more selective environment," newly appointed CEO Eric Andersen said in a statement.

AIG's general insurance net premiums written jumped 9% to $7.5 billion in the three months ended June 30, while underwriting income growth climbed 10% to $686 million.

Total catastrophe-related charges were $210 million in the quarter, including $75 million tied to the Middle East conflict, compared with $170 million in the year-ago quarter.

Catastrophe losses are one of the most volatile components of insurers' earnings. Claims can surge after a single major event, while quieter periods typically boost underwriting profits.