The figure represents a drastic shift from the group’s £2.4bn profits seen in 2019, as it looks to navigate an environment of “unprecedented uncertainty”.
AIG announced that the loss was “primarily driven” by a £4.8bn after-tax loss from the sale and deconsolidation of Fortitude Group in June 2020.
However, the company ensured that the sale, for which AIG received £1.6bn in consideration at closing, improved its risk profile and reduced long-tail runoff liabilities exposure.
While “continued progress” had reportedly been made in the final quarter of the financial year, AIG’s net loss for the three-month period sat at £43.2m, down from profits of £664.3m the previous year.
Brian Duperreault, CEO and soon-to-be executive chairman at AIG, said: “AIG’s fourth quarter and full year 2020 operating results demonstrate the continued progress we are making to position AIG for long-term, sustainable and profitable growth.
“We are effectively managing the impacts of Covid-19 and natural catastrophes and remain well capitalised in this environment of unprecedented uncertainty.”
Also reported in the group’s Q4 results was a 2% fall in global gross premiums written, down from £5.26bn to £5.14bn.
Yet, while the firm’s underwriting loss for North America increased to £280.3m, its international underwriting operations represented a 102% growth in profits to £157.1m.
Duperrault added: “I look forward to supporting Peter Zaffino as he becomes the next chief executive officer of AIG and, along with our world-class team, continues AIG’s journey to become a top performing company and leading insurance franchise.”