AIG Rallies on Q4 Earnings Results
American International Group (NYSE: AIG) released its fiscal fourth-quarter earnings results on Thursday after the closing bell. The company reported a net loss of $4.0 billion or $2.68 per share, compared to net income of $21.5 billion or $11.31 per share, in the prior year period.
Operating income was $290 million or $0.20 per share, versus $1.5 billion or $0.77 per share, in last year's corresponding quarter.
The results included losses of around $2.0 billion from super-storm Sandy and a $4.4 billion net loss on the sale of Lease Finance Corporation.
Net premiums in the fourth-quarter at the company were $8.613 billion, a decrease compared to the $8.962 billion the company reported last year.
Heading into the report, Wall Street analysts had consensus earnings per share estimates of $0.08 on revenue of $8.70 billion.
In Thursday's after-hours trading session, AIG was trading up better than 4 percent to $38.90. The stock has risen a little better than 5 percent in 2012 and is a top holding of hedge funds.
AIG's CEO, Bob Benmosche, appeared on CNBC's Closing Bell to detail his company's earnings. He emphasized that, despite significant losses from Hurricane Sandy, the insurer was still able to turn a profit. He promised to reinstate the company's dividend when it made sense, but made it clear that his goal continues to be on simplifying AIG's business model and paying off debt.
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