AIG ACHIEVES 11% NET INCOME RISE, HELPED BY BETTER RATES

New York-based AIG posted an excellent annual performance in 2000 with net income increasing 11.5% to $5.6bn on revenue of $45.7bn, up 13.1%. Chairman Maurice Greenberg said that the group’s businesses posted strong results worldwide, boosted by “the strengthening rate environment across the board, both in the US p/c market and in key overseas markets”. The group’s p/c business had operating income of $3.5bn, an increase of 1.3%, on net written premiums of $17.5bn, up 8%. The p/c sector saw a slight increase in its combined ratio to 96.7% from 96.4%. Mr Greenberg said that the group’s US personal lines operations “did not meet our expectations”, but performed satisfactorily relative to the market as a whole. Net written premiums for US personal lines increased 16% to $2.6bn. The group’s life operations saw an 18.5% rise in operating income to $3.4bn on premiums of $29.6bn, up 20.2%.