AIG’s Q4 Net Income Falls 14% to $642M as Investment Income Slides 7%
AIG’s fourth-quarter net income fell 14% year over year to $642 million, driven by a 7% slide in net investment income to $1.8 billion. Earnings per share declined to $0.81 as investment returns weighed on overall profitability.
1. Net Income Declines Year Over Year
AIG reported fourth-quarter net income of $642 million, down from $747 million a year earlier, marking a 14% decrease as weaker investment returns weighed on results.
2. Investment Income Slides
Net investment income slipped 7% to $1.8 billion amid lower yields and reduced realized gains on fixed-income portfolios.
3. EPS and Margin Impact
Earnings per share fell to $0.81 from $0.94, and the net profit margin narrowed as investment pressures offset steady insurance underwriting.
4. Underwriting Performance Stable
Core insurance operations maintained a combined ratio near 100%, but underwriting gains were insufficient to fully counter the decline in investment income.