Continuing the string of record profits being announced by major insurers, global No 1 American International Group (AIG) has recorded a net income figure of $11.7 billion for 2003. The figure is 68% up on the group’s 2002 result.

AIG’s commercial insurance operations improved recording a 28.4% increase in net written premiums to $44.5 billion. Commercial combined ratios were also positive dropping to 92.43% from 105.95% in 2002.

The group’s general insurance business benefitted from 2003’s improved underwriting conditions, recording net premiums of $11.5 billion in the fourth quarter. The figure is a 27% increase from last year.

AIG Chairman Maurice Greenberg says the group will “build on the momentum of 2003” to drive the company in 2004. He says while AIG’s outlook is “very positive”, the rest of the industry is in a position to benefit from the favourable market conditions.

“In 2004, we would expect general insurance in the US to have another solid year,” he said in a statement. “While there is more competition for certain short tail lines, the market for long tail and specialty lines, where AIG has significant competitive strengths, should continue to be strong.”