American International Group Posts Large EPS Miss, Authorizes Buyback

Shares of American International Group

are trading lower in the after-hours following the release of the company's Q3 earnings results. Currently, shares are lower by 0.53%, trading at $24.50; they ended the regular session higher by 1.82%, at $24.63. American International Group reported Q3 EPS of ($1.60); the Street was looking for ($0.32) per. Revenues increased 6.8% year over year. The results for the quarter were negatively affected by several macroeconomic drivers, including declining equity markets, widening credit spreads, and declining interest rates. Declining equity markets contributed to a loss of $2.3 billion in the market valuation of AIG's holding of AIA Group Limited (

) ordinary shares. "AIG continues to navigate a challenging global economic environment, and our results for the quarter were adversely affected by equity market declines, widening credit spreads, and declining interest rates, as well as property catastrophe losses," said Robert H. Benmosche, AIG President and Chief Executive Officer. "We also took significant impairments at ILFC, reflecting management's decision on certain aircraft that would be disposed of prior to the end of their previously estimated life in light of technological developments in the aircraft industry, fleet management announcements by certain airlines, and our newly acquired part-out company." American International Group's board also authorized a share buyback program of “Up to $1 billion in common stock.” American International Group, Inc. is an international insurance organization, serving customers in more than 130 countries. AIG companies are providers of life insurance and retirement services in the United States.