American International Group, Inc. reported today a net loss in fourth quarter earnings, but the insurer closed out 2012 with a net profit for the year.
AIG, New York (NYSE: AIG), discloses in its fourth quarter financial results, ended December 31, a net loss of $4 billion, or $2.68 per diluted share. This compares with net income of $21.5 billion, or $11.31 per diluted share, in the prior year quarter.
AIG’s full-year 2012 net income was $3.4 billion, or $2.04 per diluted share, compared with $20.6 billion, or $11.01 per diluted share, for the full year of 2011.
After-tax operating income in the 2012 fourth quarter was $290 million, or $0.20 per diluted share, compared with $1.5 billion, or $0.77 per diluted share, in the year-ago period. After-tax operating income for the full year of 2012 was $6.6 billion, or $3.93 per diluted share, compared with $2.1 billion, or $1.16 per diluted share, in 2011.
In a conference call to discuss the fourth quarter and full-year results, AIG Chief Financial Officer David Herzog said that efforts are underway to improve the company’s operating results.
“We’ve been very clear about our intention to streamline our balance sheet and [we] intend to execute on that plan in a very disciplined manner,” said Herzog. “We believe that we have made substantial progress towards our liability management goals in 2013. We continue to optimize our capital structure across the enterprise on an ongoing basis.”
Peter Hancock, CEO of AIG Property Casualty, echoed Herzog.
“The fourth quarter marked continued progress towards achieving our goals, increasing risk-adjusted profitability and implementing our main strategic initiatives,” he said.
Fourth quarter and full year 2012 results included pre-tax catastrophe losses from Storm Sandy of $2.0 billion ($1.3 billion after-tax). Net income for the fourth quarter and full year of 2012 included a $4.4 billion net loss on sale from discontinued operations associated with the agreement to sell International Lease Finance Corporation (ILFC), which reduced book value per share by $2.97 per share.
AIG shareholders’ equity totaled $98.0 billion at December 31, 2012.
During the fourth quarter of 2012, the U.S. Department of the Treasury (Treasury) completed a registered public offering of its remaining shares of AIG Common Stock for proceeds of approximately $7.6 billion, marking the full repayment of America’s financial support of AIG.
Distributions from insurance operations totaled $1.4 billion in the fourth quarter of 2012, and $5.3 billion for the full year of 2012, in each case excluding a capital contribution to AIG Property Casualty of $1.0 billion following Storm Sandy.