American International Group has announced a £4.3bn loss attributable to common shareholders for 2020, in comparison to the net income of £2.4bn recorded the previous year.
AIG stated: “The loss was primarily driven by a £4.8bn after-tax loss from the sale and deconsolidation of Fortitude Group Holdings LLC on June 2, 2020. The sale, for which AIG received £1.6bn in consideration at closing, improved AIG’s risk profile and reduced exposure to long-tail runoff liabilities and related interest rate risk.”
Reporting figures for Q4 2020, AIG said: “General insurance adjusted pre-tax income increased 4% to £583m compared to the prior year quarter due to higher net investment income offset by higher catastrophe losses, net of reinsurance (CATs). General Insurance reported £393m of CATs which included £128m, or 3.0 combined ratio points, of COVID-19 CATs resulting in a General Insurance combined ratio of 102.8 compared to 99.8 in the prior year quarter.”
For Q4 2020, the net loss attributable to AIG common shareholders was £43m, compared to net income of £664m in the prior year quarter.
Brian Duperreault, CEO at AIG, said: “AIG’s fourth quarter and full year 2020 operating results demonstrate the continued progress we are making to position AIG for long-term, sustainable and profitable growth. We are effectively managing the impacts of COVID-19 and natural catastrophes and remain well capitalised in this environment of unprecedented uncertainty.”
Recent Stories