After the market closed, AIG (AIG -2.73%) announced operating income of $1.7 billion in the fourth quarter of 2013, well ahead of the $290 million seen in the fourth quarter of 2012. The fourth quarter of 2012 included a loss of $1.3 billion after taxes as a result of Superstorm Sandy.
For the full year, pre-tax net income from continuing operations was up markedly, from $2.9 billion in 2012 to $9.4 billion in 2013. This increase was attributable to both the losses realized from Sandy in 2012, and the sale of divested businesses ($6.7 billion of losses). In total, net income attributable to AIG rose from $2.04 per share in 2012 to $6.13 in 2013. For the full year, AIG also grew its book value per share excluding accumulated other comprehensive income (AOCI) by 11%, from $57.87 to $64.28.
"AIG's strong performance in both the fourth quarter and the full year of 2013 represents another successful milestone in our journey to further build on AIG's core insurance operations," said the CEO and president of AIG, Robert Benmosche. "Global demand for our products and services, combined with our reputation for innovation, has helped to reestablish AIG as one of the world's preeminent insurance companies."
The premiums at AIG increased in the fourth quarter in its commercial insurance business from $4.4 billion to $4.8 billion, and in its property casualty business from $7.8 billion to $8.0 billion. However, it did see its premiums written fall by 6% in its consumer insurance business, from $3.4 billion in the fourth quarter of 2012 to $3.2 billion in the fourth quarter of 2013.
In addition, AIG announced it would be increasing its dividend by 25%, to $0.125 per share. The company also disclosed its Board of Directors had authorized an additional $1.0 billion for share repurchases, bringing its total authorization to $1.4 billion.
Benmosche concluded by noting: "With another year of solid performance under our belts, I am confident that we have positioned ourselves for strong growth and profitability in all of our operating businesses. Most importantly, this foundation will enable us to focus our energy on our customers."