American International Group (AIG) has reported net loss of $8.9bn, or $65.51 per share for the fourth quarter of 2009 compared to a net loss of $61.7bn, or $458.99 per share, in the same period last year.

The company’s net premiums written were $6.9bn, a decrease of 2.2%, compared to $7.08bn for the fourth quarter last year. Net premiums earned were $8.03bn, down 7.3%, compared to $8.6bn for the same quarter a year ago. Operating income increased by 4% to $3.48m from $3.35m.

General insurance unit has reported an operating loss before net realized capital gains of $1.8bn for the fourth quarter of 2009, compared to a $1.7bn for the same period last year, while domestic life insurance & retirement services’ operating income was $1.0bn, and foreign life insurance and retirement services operating income was down to $1.1bn from $1.2bn in the same period last year.

For the full year 2009, the company has reported net income of $10.9bn, compared to $99.2bn for the same period last year. Net premiums earned were $30.6bn down 16.9%, compared to $35.6bn last year.

Robert Benmosch, president and CEO of AIG, said: “Our team made great progress during the year in executing our strategic restructuring plan, by stabilizing and strengthening AIG’s insurance businesses, reducing AIG Financial Products Corp. (AIGFP) exposures, and positioning certain businesses for sale.”

“As a result of reducing our debt to the FRBNY, during the fourth quarter we incurred certain losses associated with this debt reduction. Back in September of 2008, in exchange for $85 billion in support, AIG turned over a 79.9% ownership stake in the company to a trust established for the sole benefit of the U.S. Treasury.

“This ownership stake in effect represented a ‘pre-paid commitment’ fee that AIG valued at $23 billion as an asset on its balance sheet, which we are amortizing over the life of the FRBNY Credit Facility, accelerated for mandatory prepayments.”