AIG profit soars to $1.98B in 2013 fourth quarter
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American International Group Inc.’s net income for the fourth quarter of 2013 rose to $1.98 billion from a loss of $3.69 billion during the previous year, reflecting light catastrophe losses, AIG said Thursday.
“Pretax catastrophe losses were $208 million in the fourth quarter of 2013, compared to $2.0 billion in the fourth quarter of 2012, which largely consisted of Superstorm Sandy losses,” AIG noted in its earnings release.
Net written premiums for the insurer’s property/casualty operations for the October-December period rose 2.8% to $8.03 billion. Total revenue for the company increased 1.0% to $17.35 billion in the quarter. The property/casualty operations’ combined ratio improved to 103.8% in the quarter from 125.1% during the same period in 2012.
During the fourth quarter of 2013, the property/casualty insurance operations’ net income rose to $1.16 billion from a $944 million loss during the same period a year earlier.
For 2013 as a whole, net income rose to $9.09 billion over 2012’s $3.44 billion. AIG’s property/casualty operations’ net written premium remained virtually flat at $34.39 billion. Total revenue fell 3.4% to $68.68 billion. The combined ratio for AIG’s property/casualty operations in 2013 improved to 101.3%, from 108.5% during 2012.
“AIG’s strong performance in both the fourth quarter and the full year of 2013 represents another successful milestone in our journey to further build on AIG’s core insurance operations,” said Robert H. Benmosche, AIG president and CEO, in a statement. “Global demand for our products and services, combined with our reputation for innovation, has helped to re-establish AIG as one of the world’s pre-eminent insurance companies.”
