While American International Group reported a 2011 fourth-quarter net profit of more than $11 billion, its property and casualty subsidiary Chartis came in with an underwriting loss of $5.2 billion, primarily because of its reserve charge.

In February, New York-based insurer AIG announced it would take a $4.1 billion charge in the fourth quarter to bolster its reserves. The company then reported its fourth-quarter and year-end results, showing a greater underwriting loss than last year.

Following the release of Chartis’ results, Standard & Poor’s Rating Services lowered Chartis’ counterparty-credit and financial-strength ratings. S&P said its view is that the P&C company “will not be able to outperform the industry over the next one to two years despite its global presence.”

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