American International Group has reported a profit of $922 million, or $1.03 per diluted common share, for the fourth quarter.

That compares to a net loss of $622 million, or 70 cents per share, in the prior-year quarter.

The company said the improvement was primarily due to the favourable impact of general insurance underwriting and reinsurance actions, favourable net prior year loss reserve development of $153 million (pre-tax) compared to unfavourable net.

In addition, there was a reduction in pre-tax net catastrophe losses of $385 million year-on-year, and an increase of $833 million (pre-tax) in net investment income.

For the full year, net income was $3.3 billion, or $3.74 per share, compared to a loss of $6 million, or one cent per common share, in 2018.

Brian Duperreault, AIG’s chief executive officer, said: “Our financial results for the fourth quarter and for full year reflect the significant progress we made over the course of 2019 to position AIG for long-term, sustainable and profitable growth.”

He added: “As we look to 2020, we will continue to be laser focused on executing on our strategy to position AIG as both a leading insurance franchise and a top-performing company and we remain committed to achieving a 10 per cent adjusted ROCE by the end of 2021.

“In addition to continued work as part of the turnaround of general insurance, AIG 200 will be a top priority. AIG 200 is our multiyear, enterprise-wide transformation programme focused on the long-term strategic positioning of AIG and designed to achieve operational excellence.

“I remain confident we are on the right path at AIG and am very proud of what our colleagues accomplished since I joined the company in 2017. We entered 2020 with great momentum and excitement about what the future holds for AIG.”