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(Reuters) –     Insurer American International Group Inc on Monday reported a 26% fall in quarterly profit on lower investment inco*e and blamed market volatility for a delay in the initial public offering of its life and retirement unit.

The move underscores how the wild market gyrations sparked by runaway inflation, rising interest rates and the Russia-Ukraine war are forcing co*panies to rethink their IPO plans.

AIG’s unit – set to be renamed Corebridge Financial Inc when it goes public – had filed for its offering in March and planned to co*plete its listing by the end of June.

“co*pleting the IPO is a significant priority for us and we remain ready to execute,” Chief Executive Officer Peter Zaffino said without giving a new deadline for the offering.

AIG – one of the world’s biggest co*mercial insurers – had first announced the move in 2020 and it sold a 9.9% stake in the unit to private equity firm Blackstone Group Inc for $2.2 billion last year.

The uncertain economic outlook has also put an end to the boom in investment inco*e insurers enjoyed last year when the rapid recovery from the COVID-19 crisis boosted market returns.

AIG’s total consolidated net investment inco*e fell 29% in the second quarter ended June to $2.6 billion, hurt in part by weakness in alternative investments such as private equity.

Adjusted after-tax inco*e attributable to the co*pany’s co*mon shareholders fell to $979 million, or $1.19 per share, from $1.3 billion, or $1.52 a year earlier.

AIG said net premiums written in its general insurance business rose 5% on a constant currency basis to $6.9 billion, while underwriting inco*e climbed 73%.

General insurance adjusted pre-tax inco*e jumped 5% to $1.26 billion, boosted by a $336 million increase in underwriting inco*e.

(Reporting by Noor Zainab Hussain and Niket Nishant in Bengaluru; Editing by Aditya Soni)