Tomahawk, WI 02/18/2014 (BasicsMedia) – Insurance giant American International Group Inc. (NYSE:AIG) delivered strong fourth quarter earnings that beat consensus estimates setting the company to an even fruitful F2014. Earnings per share for the fourth quarter came in at $1.15 beating earlier Zacks Consensus estimates of 96 cents, earnings per share for the fourth quarter also toppled last year’s fourth quarter earnings of 22 cents.

AIG net income for the quarter came in at $1.7 billion compared to a net income of $290 million recorded the same quarter a year ago. On GAAP basis the company posted net income totaling $1.98 billion that was a massive improvement compared to years ago net loss of$3.96 billion. Total revenue for the quarter moved up by 1% year over year to come in at $17.35 billion with benefits expenses and claims dropping 34.5% to come in at $15.2 billion. The decline in this case was as a result of lower losses.

AIG segment details

AIG Property casualty (P&C) reported a pretax  net income for the quarter totaling $1.09 billion a massive improvement compared to a net loss of $944 million reported a year ago same quarter. Stable premiums earned, with higher net investment income as well as lower claims contributed to the upswing of the segment’s net income. The quarter also saw underwriting losses decline from highs of $2.16 billion a year ago to lows of $330 million.

P&C net income for the quarter increased by 17% year over year to clock in at $1.42 billion with net premiums standing still at the $8.62 billion mark. Other operations of the company registered net losses amounting to $62 million against net income of $300 million a year ago. This was as a result of severance charges that amounted to $265 million.

Full year results

American International Group Inc. (NYSE:AIG) earnings per share for the full year stood at $4.56 beating consensus estimates of $4.38 and 2012’s $3.93, the company’s net operating income came in at $6.76 billion an increase of 1.9% with GAAP net income hitting a high mark of $9.09 billion compared $3.44 billion registered in F2012.

Lower premiums, aircraft leasing as well as net investment income adversely affected total revenue for the full year that slipped by 3.3% to come in at $68.8 billion. AIG expenses claims as well as benefits for the full year dropped by 12.9% to come in at $58.31 billion.

Financial update

AIG total investments as of December 31, 2013 stood at $34.4 billion a drop from F2012 $375.8 billion while total cash soared to $2.24 billion. The company’s net debt dropped from $48.5 billion to $41.7 billion.

American International Group Inc. (NYSE:AIG) dipped on Monday trading session by 1.23% to close the day at $48.98

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.