Despite record insured property damage payouts, giant US insurer AIG has reported significant increases in net income for 2004.

The company reported a 19.1% increase in income to $11.05 billion for the year, and a fourth-quarter profit rise of 11% – despite catastrophe losses totalling $US682.7 million, and a $US53 million after tax charge from a settlement with federal regulators.

Chairman Maurice Greenberg attributed the strong results to AIG’s diversification – specifically its “multiple profit centres and broad geographic presence”.