American International Group Inc. (AIG) has reported income losses due to the impact of the global pandemic, as well as natural catastrophes. Among the nation’s leading suppliers of travel insurance by premium volume, AIG’s losses by the fourth quarter of 2020 swung to $178 million due to Covid-19, primarily related to its travel, event-cancellation and reinsurance lines.
In addition, the company also reported $367 million of losses from natural catastrophes, including Hurricanes Sally, Zeta, Laura and Delta.
While the end-of-year results signify the negative impact that Covid has had on the company’s operations, it’s worth noting that the company has been enjoying improved results in its core property and casualty (P&C) business over recent quarters, with the appointment of Brian Duperreault as Chief Executive – pointing to additional turnaround signs as 2020 was closing. What’s more, AIG’s plans to split off its P&C business continue unabated, and should see further improvement on the company’s profits.
“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,” Duperreault said in the earnings release. “We are effectively managing the impacts of Covid-19 and natural catastrophes and remain well capitalised in this environment of unprecedented uncertainty.”
Over in Australia, GlobalData has reported that the general insurance industry is due to grow, despite the economic impact of the global pandemic.