AIG posted a Q2 profit, driven by sustained momentum in property and improving conditions in casualty, according to CEO Peter Zaffino.
The group continues to navigate Russia-related aviation claims stemming from aircraft stranded after the 2022 invasion of Ukraine.
These involve leased planes stuck in Russia after sanctions, with lessors seeking payouts under all-risk and war-peril coverage.
Zaffino said property insurance remains robust, while casualty shows early signs of recovery.
A June decision by the U.K. High Court in a case led by AerCap Holdings ruled that lessors suffered a covered war loss due to Russian government actions in March 2022.
AerCap said the judgment allows it to recover about $1 bn from insurers. The Commercial Court found AerCap Ireland Ltd. entitled to an indemnity under the war and allied perils section of its contingent and possessed policy.
Zaffino noted the decision matches several U.S. rulings in a dispute complicated by early litigation filings from lessors, which slowed the claims process.
AIG, as lead all-risk defendant in the U.K. case, argued the losses should be covered under war risk—a position the court adopted.
The company settled all other contingent and possessed policy claims in the U.K. before the AerCap judgment, in many cases securing policy releases.
Another U.K. proceeding involves operator policies, where AIG and other insurers face claims. Zaffino said these are unlikely to succeed given that the aircraft remain in use by Russian operators.
He confirmed AIG has set aside reserves for anticipated aviation losses, aligned with the U.K. ruling and outstanding cases, but did not disclose the figure.
