Fourth-quarter 2022 net income attributable to American International Group common shareholders fell to $264 million from about $3.7 billion the year prior, but the insurer’s general insurance business ended the year with “the strongest underwriting results the business has ever achieved,” said CEO Peter Zaffino.

AIG’s adjusted after-tax income was about $1.3 billion in the fourth quarter compared with about $1 billion for the last three months of 2021.

But focusing on the general insurance segment, underwriting income jumped 27 percent in the fourth quarter to $635 million from $499 million in Q4 2021. For the second straight year, underwriting profit in general insurance improved $1 billion, Zaffino added in a statement.

“Improvement in general insurance continued through portfolio optimization, prudent risk selection and limit reduction of over $1.2 trillion since 2018,” Zaffino said. “Our strong momentum continued through the complex January 1 reinsurance renewal season, where the quality of our portfolio enabled us to secure treaties on favorable terms in a very challenging market.”

The Q4 combined ratio in general insurance was 89.9, an improvement of 2.5 points from the same period the prior year. Catastrophe losses during Q4 were $235 million, primarily from Winter Storm Elliott. Q4 net premiums written (NPW) for the segment fell 6 percent to about $5.6 billion. Personal lines NPW fell 14 percent due in part to AIG’s repositioning of its Private Client Group business. The personal lines business in North America reported a combined ratio of 102.5.

The day before releasing its earnings, AIG announced it plans to partner with Stone Capital to form an independent managing general agency for its high-net-worth business.

Commercial lines NPW saw growth in North America of 3 percent but a decline of 8 percent in International. Each region recorded profitable combined ratios of 84.4 and 89.4, respectively.

Quarterly results also included favorable prior-year development of $151 million, net of reinsurance.