AIG’s net profit dropped 17.1% to $US7.53 billion ($9.69 billion) last year, pushed down by debt repayment costs.

Fourth-quarter profit was $US655 million ($842.74 million), slumping 67% from $US1.98 billion ($2.55 billion) in the corresponding period of 2013.

AIG made an after-tax loss on debt extinguishment of $US824 million ($1.06 billion) in the fourth quarter.

“We began several value-based initiatives last year and will continue these efforts this year,” President and CEO Peter Hancock said. “We remain committed to streamlining our operations and reducing our cost structure.” 

Pre-tax operating income from property and casualty grew to $US4.25 billion ($5.46 billion) last year from $US4.1 billion ($5.26 billion).

AIG’s consumer insurance unit, which includes life and retirement, made a pre-tax operating income of $US4.47 billion ($5.74 billion) for the year, down from $US4.56 billion ($5.86 billion) in 2013.