AIG’s rebranded general insurance division Chartis made a $US1.6 billion ($1.8 billion) pre-tax loss for the three months to December 31.

The company says beefed-up reserves for its long-tail casualty business put a squeeze on profit, although the loss is a fraction of the $US3.9 billion ($4.3 billion) deficit in the corresponding period of 2008.

Chartis ended the full year with pre-tax profit of $US169 million ($188 million) compared with a $US2.4 billion ($2.7 billion) loss in 2008.

Fourth-quarter net written premium was down 2.2% from a year earlier at $US6.9 billion ($7.7 billion), but up on previous quarters of 2009. Full -ear net written premium slid 13.9% to $US30.7 billion ($34.2 billion).

The combined ratio of 132.5% for the three months included 28.2 points for reserve strengthening. For the calendar year it came in at 108%.

Chartis says its annual results reflect improvement in key performance indicators including business retention, new business submissions and new business premiums, despite a challenging economy that limited rateable exposures, and generally soft market conditions.