American International Group, the world's largest insurer by market value, said today its net profit plummeted 81 per cent as it paid out heavy claims from the destruction of the World Trade Center and took charges for its acquisition of life insurer American General.
AIG reported a net profit of $326.8 million compared with a net profit of $1.7 billion a year earlier.
Although hit hard by World Trade Center claims, AIG and other insurers are looking to recoup through higher premiums.
AIG shares closed down 2 cents at $83.80 on the New York Stock Exchange yesterday.
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The stock has fallen about 15 per cent so far this year, in line with the Standard & Poor's Insurance Index.