Feb. 14 (Bloomberg) — American International Group Inc. suffered another year of impairments in its portfolio of death- benefit bets as insured people lived longer than the company expected.

AIG recorded an $832 million impairment on its life- settlement holdings in the fourth quarter, bringing the total for 2013 to $971 million before taxes. In life settlements, AIG buys insurance policies from individuals and pays premiums until they die, when the company collects the payout. The arrangement becomes less profitable for AIG the longer the person survives.

The charge on the death bets "was prompted by the continued underperformance relative to our mortality assumptions," Chief Financial Officer David Herzog said on a conference call with analysts today. "We revised our future mortality assumptions."

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