AIG profit improves in second quarter; tops Wall Street estimates

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – American International Group said Monday that quarterly earnings topped analysts’ expectations, which is a reversal from a series of poor results compared with industry rivals.

In the second-quarter, the New York-based insurer registered after-tax operating income of $1.25 per share, from a $1.12 per share profit in the year-ago quarter. The company’s earnings per share (EPS) surpassed Wall Street’s forecast of $1.05.

Net income attributable to the insurance giant’s shareholders climbed to $3.1bn in the second quarter from $2.7bn in the previous year.

AIG has been making major changes since 2008, when the government rescued the company during the financial crisis. The company has been seeking to focus on its core insurance business, shedding assets such as ILFC.

AIG Chief Executive Robert Benmosche, who led the company during the post-crisis years, has said in the past that he will be stepping down next month and will be replaced by AIG’s property-casualty chief Peter Hancock.

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