AIG also announced that it would buy back about $2.5 billion in shares of common stock on top of the roughly $4.9 billion in stock it repurchased in 2014.
Analysts had expected AIG to post earnings of $1.05 a share on $8.64 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company reported an operating profit of $1.37 billion, well short of the $1.67 billion reported in the year-earlier period.
AIG, starting on Thursday, is reporting its businesses in terms of commercial insurance and consumer insurance. Hancock said in a release that it "reinforces our focus on the ultimate client group being served, not the product being delivered."
After-tax operating income in the commercial segment increased to $1.22 billion from $973 million a year ago. The same metric in the consumer segment, though, dropped to $923 million from $1.16 billion in the year-earlier period as AIG saw income from both retirement and life insurance drop off.
The company's earnings conference call will take place at 8 a.m. ET on Friday.
AIG shares have climbed more than 6 percent in the last year, compared to a roughly 14 percent jump for the S&P 500.
The insurer announced last month that it would buy Laya Healthcare, the second-largest health insurance provider in Ireland. It also last month completed its acquisition of Ageas Protect, a British insurer.
AIG executives had publicly supported congressional legislation for a revamped federal terrorism insurance program, which gained approval last month.
Thursday marks the company's second quarterly earnings report since Peter Hancock took over as president and CEO in September.