AIG reports Q4 2014 net income of USD655 mn

American International Group reported net income attributable to AIG of USD655 million for the quarter ended December 31, 2014. Full year 2014 net income attributable to AIG was USD7.5 billion, compared with USD9.1 billion for 2013.

Reported net income included an after-tax loss on extinguishment of debt of $824 million, or $0.58 per diluted share, associated with liability management activities during the fourth quarter of 2014.

In addition, the Life operating segment recorded a pre-tax charge of USD104 million in the fourth quarter of 2014 to increase reserves for incurred but not reported death claims, which reflected continuing efforts to identify deceased policyholders where a valid death claim has not been filed, pursuant to the resolution of a multi-state audit and market conduct examination.

“Our fourth quarter results showed progress on expense control, ongoing investments in our businesses, and our commitment to balance sheet management,” said Peter D. Hancock, president and chief executive officer.

“Looking back on 2014, it was a year of transition and transformation, as we took important steps toward our goal of becoming the world’s most valued insurer,” Mr. Hancock continued. “Our focus on value benefits our customers and our shareholders, and leverages our global scale to achieve the right balance between growth, profitability, and risk. We began several value-based initiatives in 2014 and will continue these efforts in 2015. We remain committed to streamlining our operations and reducing our cost structure. Beginning this quarter, we are providing more information and detail in our disclosures on expenses and investments, which we’ll discuss further on tomorrow’s earnings call.