AIG Sinks on Mixed Results
Shares of American International Group (NYSE:AIG) , or AIG, traded to the downside on Friday morning following the company’s quarterly report on Thursday. Over the last few years the company has looked to re establish itself after tough derivative bets nearly broke the back of the financial system just five years ago. Net income rose 17 percent to $2.17 billion, or $1.46 per share, from $1.86 billion, or $1.13 per share, a year earlier. Excluding items, the company earned $1.46 billion, or 96 cents per share, down $1.13 billion or 99 cents a share in the year-earlier period. On the top line AIG saw its revenue decreased 4 percent to $8.43 billion from $8.75 billion a year ago. These results came in largely in line with analysts consensus estimates. Wall Street had expected the company to report earnings excluding items of 94 cents a share on $8.63 billion in revenue, according to a consensus estimate from Thomson Reuters.
Net premiums earned in AIG’s property casualty unit dropped by 4 percent to $8.43 billion in the quarter ended September 30, while the combined ratio improved 3.4 points to 101.6. As a result of can see the company is still not booking an underwriting profit. The company kept its 10-cent dividend and announced that it bought back $192 million in stock in the three months ended September 30.
At the time of this writing shares of the company are down by nearly 5 percent to $49.15 per share in the pre-market session. It will be interesting to see if shares can rebound during the session as the broad market will likely open to the upside. Expect a number of analyst comments and clarifications in the coming days.
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