AIG’s general insurance arm posted a 29% drop in fourth-quarter underwriting income to $US454 million ($722 million), driven by higher catastrophe charges.

Chairman and CEO Peter Zaffino says early estimates indicate the Los Angles fires will cost the insurer about $US500 million ($796 million) before reinstatement premiums.

“Against the backdrop of an extremely challenging natural catastrophe environment … we ended 2024 with excellent fourth-quarter results, generating strong growth across our businesses with outstanding underwriting profitability,” he said.

Group net income rose sharply to $US898 million ($1.43 billion) from $US86 million ($136 million) a year earlier. AIG says this was mainly due to a higher net loss from discontinued operations in the previous period.

The general insurance operation’s gross written premium grew 5% to $US8.02 billion ($12.7 billion) and net investment income dropped 2% to $US779 million ($1.24 billion).

Catastrophe-related charges totalled $US325 million ($517 million), including $US301 million ($479 million) of North American commercial losses from hurricanes Milton and Helene.

The general insurance combined operating ratio weakened to 92.5% from 89.1% in the year-earlier quarter.

In the international commercial arm, underwriting income increased 19% to $US347 million ($552 million) and global personal underwriting income surged to $US82 million ($130 million) from $US21 million ($33 million).