Undiscouraged by the $2 billion of charges it incurred for regulatory settlements and increased loss reserves, the world's largest insurer American International Group emphasized the strength of its business when it reported increased earnings for 2005.
Taking into account net catastrophe related losses of $2.11 billion including costs resulting from Hurricanes Wilma and Katrina, the group reported a net income of $10.48 billion for the full year 2005.
Though the results fell below analyst expectations, AIG’s president, Martin Sullivan, emphasized the group’s resilience and looked to its future with optimism, These results are a testament to AIG’s diversified portfolio of market-leading businesses and the commitment of our 97,000 employees who, throughout this challenging year, remained focused on executing the strategies we have in place.
He continued, AIG is financially strong, and our major business units remain focused on our strategic objectives. Our tradition of entrepreneurship and innovation will enable AIG to continue to perform successfully, enter new markets, develop new products and meet our clients’ needs. There is every reason for us to be optimistic about our future. AIG today is a better company for all that we have been through.