It was a rough although not unexpected result in the fourth quarter for insurance giant American International Group Inc., which saw profits decline 67 percent due to a decision to pay down debt and add cash to reserves.

Net income was just $655 million, or 46 cents per share, compared to $1.98 billion and $1.34 per share just a year ago, AIG reported in a statement Thursday, according to a Bloomberg report.

Operating profit, meanwhile, was 97 cents per share, below the $1.06 average that analysts surveyed by Bloomberg had been expecting. Operating profit excludes results from investing and debt redemptions.

Chief Executive Officer Peter Hancock had been focusing on revamping the company to improve on results ever since assuming leadership back in September, issuing bonds at lower interest rates in order to repay higher-cost debts, absorbing an $824 million charge for that in the fourth quarter. One analyst called it a “transitional year” for AIG, and 2015 should show some progress for the company, according to Bloomberg.

The stock was down after the results were announced, but not too much: trading closed at $52.11, a 34-cent decline. The company grew 9.7 percent last year compared to the 11.4 percent gain of the Standard & Poor’s 500 Index, meaning that it underperformed compared to its peers.

The board authorized repurchasing $2.5 billion in stock. AIG bought back $4.9 billion in stock throughout all of 2014.

AIG issued 4.5 percent 30-year notes worth $750 million, and repurchased $2.8 billion in high-cost hybrid and senior notes, reducing its debt obligations. It also cut debt tied to the direct investment book by about $2.5 billion, according to Bloomberg.