American International group announces Q1 Earnings; Shares Fall

On Monday afternoon, American International Group AIG announced its first quarter 2014 earnings. Shares of the company are down 2.50 percent or $1.32 per share to $51.40 in after hours trading. The company reported net income of $1.6 billion, compared to $2.2 billion the same period a year ago. The company also continued to add that it had repurchased shares of approximately $867 million in the first quarter of $2014. Additionally, $1.7 billion in cash dividends from AIG Life and Retirement in the first quarter of 2014 were given. “These results reflect strong operating income across our insurance operations, as well as execution of our capital management strategy,” said President and CEO Robert Benmosche. “We remain diligently focused on increasing operational efficiency, managing our expenses, and investing in technology; we continue to look at ways to simplify and make our organization more efficient to ensure that we are creating a company that will thrive well into the future.” Diluted earnings per share were 1.09, compared to 1.49 the same period a year ago. The company repurchased 17.4 million shares of AIG Common Stock for a total purchase price of $867 million in the first quarter of 2014 and $537 million remaining under repurchase authorization “I am very pleased with AIG's solid operating profits this quarter,” Benmosche continued. “The earnings power of our business coupled with our customer strategy reinforce the strength of our foundation throughout our core insurance operations. I am encouraged by the positive momentum we've generated around the world, which has enabled us to become closer to, and better serve, our customers.”