AIG’s International business posts underwriting loss with more work still needed in Europe
AIG’s International business needs continued work to improve results amid underwriting losses.
AIG’s international business had a $530m loss in the fourth quarter and a $1.1bn loss for the full year.
Financial lines, property and special risks in the European business were areas where the business took ‘development’.
However, AIG bosses say work is already underway on fixing the business and this will continue.
Speaking to analysts following the fourth quarter results, chief operating officer Peter Zaffino said: “We took underwriting actions in late-2016 and the 2017 accident year has seen an early improvement in the trend, but rate and risk selection (important) is still required in these portfolios. We continue to work on remediating our book.”
AIG chief executive Brian Duperreault has dubbed 2018 as the ‘year of the underwriter’ and wants his people ruthlessly focus on selecting the right business at the right price.
He said: “As I’ve said befoere, 2018 is the year of the underwriter at AIG and I’m empowering undewriters and holding them accountable for driving profitable growth.”