AIG shares are now little changed after-hours following Q4 earnings of $0.57/share that fell well short of Wall Street expectations, but it's progress compared with an adjusted loss of $2.8B, or $2.72/share, in the same period last year.
AIG's unadjusted Q4 net loss totaled $6.66B, or $7.33/share, including a $6.7B charge due to the recent U.S. tax law changes; it reported a net loss of $3.04B, or $2.96/share, a year earlier.
AIG booked $762M of catastrophe losses during Q4, including $572M from the California wildfires; it had estimated ~$500M of losses for the quarter from the wildfires.
For the full year, AIG reported $4.2B in catastrophe losses, a company record and more than 3x higher than the previous year, but it delivered $3.16B in adjusted pretax income for 2017 vs. $1.42B in 2016.
“2017 represents a starting point from which we expect to build, and 2018 will be a year of execution,” says AIG President and CEO Brian Duperreault. “Our actions to diversify our business and pursue profitable growth were further reflected” by last month's acquisition of Validus.
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