American International Group Inc (NYSE:AIG) posted its quarterly results after hours Thursday, missing expectations due to a tax charge.
The insurance provider was hit hard by the changes in the U.S. tax code, setting earnings down to a loss of $6.7 billion, or $7.33 per share. Excluding this charge, adjusted earnings came in at $526 million, or 57 cents per share, topping the year-ago adjusted loss of $2.72 per share.
Analysts were calling for adjusted earnings of 75 cents per share, according to data compiled by Thomson Reuters. American International Group had to shell out $762 million in catastrophe losses during its fourth quarter, due in part to the wildfires that hit California and caused damage to homes and businesses.
The company’s general insurance business only brought in $13 million in adjusted pretax income, compared to a $4.9 billion loss in the year-ago quarter. This figure was affected by a review that caused the company to significantly boost reserves.
American International Group’s life and retirement business also suffered a setback linked to a re-evaluation of its method of predicting losses, costing it a $90 million charge related to a “modernization” of the company’s actuarial systems and models.
Overall, the company’s fourth-quarter adjusted pretax income fell 10% year-over-year to $782 million. “Personal Insurance and Life and Retirement operations continued to deliver solid performance and benefit from their diversified offerings,” said Brian Duperreault, President and CEO.
AIG shares gained 1.1% after the bell Thursday.