AIG’s after-tax operating income grew more than 200% in the year to December 31, reaching $US6.64 billion ($6.45 billion) from $US2.09 billion ($2.03 billion) in the previous year.

The result comes despite a $US2 billion ($1.94 billion) pre-tax loss on Superstorm Sandy – the second-largest catastrophe event for AIG in the US – which led to a $US4 billion ($3.88 billion) net loss in the fourth quarter.

After-tax operating income from the property and casualty (P&C) division was $US1.82 billion ($1.77 billion) for the year, up 49% from $US1.22 billion ($1.18 billion).

This reflects improved underwriting margins and strong investment performance, the company says.

Net written premiums from P&C were $US34.44 billion ($33.44 billion), down 1.2%, while the P&C combined operating ratio was flat at 108.6%.

“When history is written we will look back and see that by the end of 2012 a new era for AIG had begun,” President and CEO Robert Benmosche said. “As ‘one AIG’, we will expand on our accomplishments.

“We still have work to do, but we have confidence in the opportunities we will create in 2013 and beyond. We remain committed to investing in our business, but expect to take continued actions to improve our efficiencies through technology and streamlined work processes.”