AIG has reported its Q4 2022 and full year results, with underwriting income having nearly doubled for the year.
Pre-tax income for the full year was US$14.3 billion, an increase from US$12.1 billion in 2021. Net income was US$10.2 billion, up from 2021’s US$9.4 billion.
For Q4 2022, pre-tax income from continuing operations was US$279 million, down from US$5 billion in the prior year quarter, AIG said.
The full year improvement was “largely driven by net realized gains on Fortitude Re funds withheld embedded derivative, strong General Insurance underwriting results, which almost doubled year-over-year, and lower interest expense benefiting from liability management actions, partially offset by lower alternative investment income and call and tender income,” AIG said in a results release.
Peter Zaffino, AIG chairman and CEO, hailed an “extraordinary year of progress”.
“We continued to improve the profitability of our general insurance business, closing the year with the strongest underwriting results the business has ever achieved and with the second consecutive year of underwriting profitability improving by $1 billion,” Zaffino said.
“In addition, we made considerable progress on the separation of our life and retirement business and completed the initial public offering (IPO) of Corebridge Financial in September 2022.
“We reached significant milestones on AIG 200 that modernized our technology infrastructure and operational capabilities, while executing on our target run-rate savings of $1 billion six months ahead of schedule.”
Also noted by Zaffino was a revamp of AIG’s investment management strategy. AIG has transferred approximately US$50 billion of assets to Blackstone, and US$150 billion to BlackRock, Zaffino said.
“In 2022 our colleagues across the globe aligned behind common goals and maintained a steadfast commitment to executing with the highest quality, and I am incredibly proud of the meaningful progress we made,” the CEO and chairman said.
While Zaffino said the world is facing “uncertainties” in 2023, he said that AIG was “better positioned than ever” to perform well.