Insurer American International Group reported fourth-quarter results that beat Street expectations, although CEO Robert Benmosche said some employee bonuses will be smaller this year because the company did not meet its targets.
Overall, AIG reported a $4 billion loss , due mainly to the sale of aircraft leasing business ILFC, as well as losses from Superstorm Sandy.
But AIG’s underlying business — with higher investment income across two key insurance units and stronger underwriting margins in its property and casualty business — helped lift operating earnings above what analysts expected.
“We still have work to do, and we didn’t meet all our business goals in 2012, which will mean some short-term incentive pools will be smaller this year than last year,” Benmosche said.