AIG’s general insurance business made $US5.37 billion ($8.21 billion) in adjusted pre-tax income last year, up from $US4.4 billion ($6.7 billion) in 2022.

Full-year general insurance underwriting profit grew 15% to $US2.3 billion ($3.5 billion), driven by global commercial lines, which increased 25%.

For the December quarter, adjusted pre-tax income rose 19% to $US1.4 billion ($2.1 billion). The insurer says higher net investment income, improved accident-year losses and lower catastrophe-related charges in the October-December period partially offset lower favourable prior-year development and higher general operating expenses.

“We have significant momentum as we enter 2024, and excellent underwriting, operations, claims service and talent are what will drive AIG’s continued growth,” Chairman and CEO Peter Zaffino said. “As we continue to navigate an increasingly complex global risk environment, we will remain agile and disciplined while delivering sustainable and differentiated value to our customers, partners and stakeholders.”

In the December quarter, net premium written improved 3% to $US5.75 billion ($8.8 billion). In the international division, commercial lines grew 8% to $US1.9 billion ($2.9 billion) and personal insurance 1% to $US1.18 billion ($1.8 billion).

International made an underwriting profit of $US321 million ($491 million) in the quarter, up 53% from a year earlier.

Overall net income last year was $US3.6 billion ($5.5 billion), compared with $US10.2 billion ($15.6 billion) in 2022. AIG says the decline was mostly driven by “net realised losses largely related to Fortitude Re funds withheld embedded derivative at life and retirement, compared with gains in the prior year, as well as derivative activity”.