Nov 4 (Reuters) - American International Group ( AIG )

sailed past Wall Street estimates for third-quarter profit on

Monday as the insurer benefited from strong underwriting and

higher returns on investments.

General insurance net premiums written, on a comparable

basis excluding the impact of divestitures, climbed 6% in the

quarter to $6.38 billion.

AIG's general insurance accident year combined ratio came in

at 88.3% on an adjusted basis, compared with 86.9%, a year

earlier. A ratio below 100 signifies that the insurer earned

more from premiums than it paid out in claims.

The insurance industry is largely immune to economic

vagaries, since most of its policies are either bought by

employers for their workers or mandated by governments.

A booming stock market has also helped insurers book high

returns on their investments.

Net investment income rose 14% to $973 million in the third

quarter, driven by dividends received from Corebridge

and higher income from alternative investments and equity and

fixed-maturity securities.

AIG retains a stake in Corebridge, the life and retirement

insurer it spun off in 2022.

The gains in underwriting and investment income helped

offset higher catastrophe losses.

Insurers have faced billions in payouts in recent years as

climate-related disasters intensify. The 2024 U.S. hurricane

season has been especially destructive, with major storms

impacting multiple states.

AIG posted catastrophe losses of $417 million in the

quarter, of which $324 million was in North America, with losses

predominantly from windstorms and hailstorms.

"In a challenging catastrophe environment, this performance

is remarkable, with industry insured losses expected to top the

2023 total of $125 billion," CEO Peter Zaffino said.

AIG - one of the world's largest commercial insurers -

reported adjusted after-tax income attributable to common

shareholders of $1.23 per share in the three months ended Sept.

30, from $1.04 a year earlier.

Analysts on average had expected $1.10 per share, according

to estimates compiled by LSEG.

(Reporting by Manya Saini in Bengaluru; Editing by Anil

D'Silva)