AIG declares fourth quarter results
Largely as a result of latest tax reform within the US, in addition to the California wildfires, American International Group (AIG) was hit with a web lack of US$6.66 billion (round SGD$eight.87 billion) within the fourth quarter of 2017.
AIG noticed its web loss double from the US$three billion determine it endured in 2016. The 2017 blow included a cost of US$6.7 billion associated to the enactment of the Tax Cuts and Jobs Act and US$762 million of disaster losses – US$572 million of which got here from the California wildfires.
From its common insurance coverage enterprise, AIG reported fourth quarter adjusted pre-tax earnings of US$13 million; life and retirement, US$782 million; and legacy, US$411 million. Net premiums written for common insurance coverage in North America decreased by 14%, whereas web premiums written elsewhere posted a 6% drop. However the insurer did ship US$three.16 billion in adjusted pre-tax earnings for the 12 months – that’s a rise from US$1.42 billion in 2016.
Last month AIG entered into an settlement to amass Validus Holdings Ltd. for US$5.6 billion. The insurer mentioned the acquisition will strengthen its international common insurance coverage enterprise by increasing its present product portfolio via extra distribution channels, in addition to advancing the instruments accessible for underwriting.
“2017 represents a starting point from which we expect to build and 2018 will be a year of execution,” mentioned AIG president and chief government Brian Duperreault. “Our actions to diversify our business and pursue profitable growth were further reflected in our January announcement of the acquisition of Validus.”