AIG’s loss for European business worsens in 2017
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American International Group Inc.’s European unit saw revenue increase but its loss widen in 2017 as natural catastrophes in North America and the Caribbean hit European business.
AIG Europe Ltd. reported a £431.5 million ($581.2 million) loss before taxes for the year ended Nov. 30, 2017, on Friday, compared with a £171.1 million loss in 2016.
The unit’s combined ratio deteriorated to 114.6% in 2017 from 111.8% in 2016 as catastrophe losses and developing losses from prior years hit AIG Europe’s results, the insurer said.
Net written premium increased 7.1% to £3.92 billion as stronger growth in personal lines and financial lines offset weaker conditions in property insurance, according to an AIG statement. AIG Europe also took “the decision to step away from less profitable business,” the insurer said.
AIG Europe’s business is composed of 44% liability and financial lines, 29% property and special risks, and 27% personal lines, according to the unit’s annual report.
The results come two weeks after the unit’s New York-based parent reported a 20% drop in profit for the first quarter of 2018 and two months after it reported a $232 million adjusted loss for 2017.
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