American International Group, Inc (AIG) has reported that its net income for the full year 2002 was US$5.52bn, compared to US$5.36bn in 2001. The fourth quarter of 2002 resulted in a net loss of US$103.8mn, compared to net income of US$1.87bn in the same period of 2001.

On February 3, AIG announced that it would incur a net, after tax charge of US$1.8bn in the fourth quarter of 2002 related to an increase of general insurance net loss and loss adjustment reserves, following the completion of AIG’s annual year-end loss reserve study. Fourth quarter 2002 income as adjusted, excluding the reserve charge and realised gains and losses, increased 13.9% to US$2.33bn. For the full year 2002, income as adjusted was US$8.91bn, an increase of 11.9% over the full year 2001, which was also adjusted for the cumulative effect of accounting changes, acquisition, restructuring and related charges and

  • World Trade Center and related losses.