American International Group will take a fourth-quarter charge of $4.1 billion for raising its loss reserves, the insurer said on Wednesday.

Bailed-out insurer AIG said it was raising its loss reserves in its Chartis property and casualty insurance subsidies.

Separately, the company said it had entered an agreement with the U.S. government that will allow it to keep $2 billion of the proceeds from selling its AIG Star Life Insurance Co and AIG Edison Life Insurance Co.

AIG will use this money to bolster the capital in its Chartis units, the company said.

AIG will report full fourth-quarter results after the market closes on February 24.

(Reporting by Elinor Comlay; Editing by Lisa Von Ahn)

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