AIG’s non-US operations show narrower losses, but premiums fall and COR widens
AIG’s international general insurance business reported an adjusted pretax loss of $399m for the fourth quarter, an improvement on the loss of $441m it reported a year earlier.
Net premiums written were $3.3bn, down from $3.5bn, with personal lines falling to $1.9bn from $2.0bn, and commercial lines declining to $1.4bn from $1.5bn.
The international GI business saw its combined ratio widen slightly to 114.5% from 114.4%, with the accident year combined ratio widening to 107.5% from 102.0%.
The wider AIG group reported a net loss of $6.7bn for the fourth quarter, compared with a $3.0bn loss the same quarter a year earlier.
The results included a charge of $6.7bn resulting from the US tax reforms.
The company said adjusted after tax income was $526m, compared with an equivalent after tax loss of $2.8bn a year earlier.
“Since I joined the company in May, we’ve added to our talent base, assessed and initiated underwriting actions, and established a new operating structure. 2017 represents a starting point from which we expect to build and 2018 will be a year of execution, said president and chief executive Brian Duperreault.
Fourth quarter and full year results were “significantly impacted” by catastrophe losses totalling a record $4.2bn, Dupperault said.