American International Group, Inc. (NYSE: AIG) today reported net income attributable to AIG of $2.0 billion or $1.34 per diluted share for the quarter ended December 31, 2013, compared to a net loss of $4.0 billion or $2.68 per diluted share for the fourth quarter of 2012. The year ago quarter included a $4.4 billion net loss associated with the sale of ILFC and pre-tax catastrophe losses of $2.0 billion from Storm Sandy ($1.3 billion after tax). Full year 2013 net income attributable to AIG was $9.1 billion, or $6.13 per diluted share, compared with $3.4 billion, or $2.04 per diluted share, for the full year of 2012.
After-tax operating income attributable to AIG grew to $1.7 billion, or $1.15 per diluted share, for the fourth quarter of 2013, compared to $290 million, or $0.20 per diluted share, in the prior-year quarter, reflecting growth in each of AIG’s core insurance operations. After-tax operating income for the full year of 2013 was $6.8 billion, or $4.56 per diluted share, up from $6.6 billion, or $3.93 per diluted share, in 2012.
AIG continues to pursue initiatives to reduce expenses and improve efficiencies to best meet the needs of its customers. These initiatives include centralizing work streams into lower cost locations and creating a more streamlined organization. In the fourth quarter of 2013, AIG incurred a pre-tax severance charge of $265 million associated with these initiatives primarily related to AIG Property Casualty.
“AIG’s strong performance in both the fourth quarter and the full year of 2013 represents another successful milestone in our journey to further build on AIG’s core insurance operations,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “Global demand for our products and services, combined with our reputation for innovation, has helped to reestablish AIG as one of the world’s preeminent insurance companies.