American International Group reported net income from the fourth 2024 quarter of $ 898 million compared to $ 86 million in the previous year, but insurance subscription revenues fell 29% in high catastrophe losses.

AIG said the dramatic increase in revenues for the quarter was due to the high losses of the discontinued operations recorded in the fourth quarter 2023. These discontinued operations of the deconsolidation of Corbridge Financial affected the results of net income affected by the year 2024 , ending with a loss of $ 1.4 billion compared to net income of $ 3.6 billion by 2023.

The CEO Peter Zaffino said that the “insurer’s commitment to prudently manage the risk and volatility” allowed him to finish all year with approximately $ 1.9 billion (18% less than one previous year) in subscription income in general insurance , which consists of its three new segments as part of a recent reorganization: Commercial of North America, International Commercial and Global Personnel.

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For the fourth quarter of 2024, the subscription income was $ 454 million compared to $ 642 million in the fourth quarter of 2023. Insurance operations paid $ 325 million in catastrophes losses during the period. Around $ 300 million of the losses were attributed to Hurricanes Milton and Helene in the commercial segment of North America.

Catastrophe losses and restoration premiums added 5.5 points to the combined 92.5 ratio of the general insurance quarter. The combined relationship was 89.1 for the fourth quarter of 2023.

In the North America, the combined Q4 ratio reached 98.8 versus 85.1 the quarter of the previous year mainly due to catastrophe losses. Subscription revenues fell 92% for the fourth quarter to $ 25 million and 60% dropped for the full year to $ 548 million.

The 5% growth in the net premiums written in the North American Commercial for the fourth quarter was a bit of positive news, thanks to the growth of the victims and the Lexington insurance subsidiary of AIG.

The subscription income in the global person went from $ 21 million in the fourth quarter of 2023 to $ 82 million in the fourth quarter of 2024. The full -year subscription income was $ 142 million compared to a loss of $ 8 million for 2023.

The International Commercial is executed in the best margins, with a 19% subscription income for the fourth quarter and 22% for the full year to $ 347 million and $ 1.2 billion, respectively. The combined ration improved 83.1 for the last quarter of 2024 and 84.9 for the whole year.

Topics Catastrophe loss of aig aig