NU Online News Service, Feb. 11, 2004, 12:17 p.m. EST – The stock market rebound and an improving world economy helped increase fourth-quarter 2003 profits 68% at American International Group Inc., New York.[@@]
The insurer is reporting $9.3 billion in net income for the latest quarter on $22.2 billion in revenue, up from $5.5 billion in net income on $17.5 billion in revenue for the fourth quarter of 2002.
Worldwide life operating income increased to $1.8 billion, from $1.1 billion, and domestic life operating income increased to $717.2 million, from $412.5 million. One factor that contributed to the improvement in domestic earnings was a decrease in investment losses to $97.5 million, down from $412.5 million for the fourth quarter of 2002.
Sales were strong for many AIG products, and especially for individual fixed annuities and guaranteed investment contracts.
Individual FA sales climbed 40%, to $3.2 billion, and GIC sales soared 175%, to $3.2 billion.
“We write GICs on an opportunistic basis when market conditions are favorable, as they were in the domestic market in the fourth quarter,” says AIG Chairman Maurice Greenberg.