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AIG Q2 Profit Tops Expectations

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American International Group Inc (NYSE: AIG) reported better-than-expected profit for the second quarter and increased its dividend.

The company reported quarterly net income of $1.8 billion, or $1.32 per share, down from $3.1 billion, or $2.10 per share, in the year-ago quarter. Its after-tax operating income rose to $1.9 billion, or $1.39 per share, from $1.8 billion, or $1.23 per share. However, analysts were expecting earnings of $1.23 per share.

The average estimate among 40 Estimize users was for earnings of $1.15 per share.

Consumer Insurance's pre-tax operating income slipped to $1.0 billion in the latest quarter, versus $1.1 billion in the year-ago quarter.

Pre-tax operating income at Commercial Insurance slipped to $1.5 billion from $1.6 billion.

During the second quarter, the company repurchased around 40 million shares of AIG common Stock for an aggregate price of $2.3 billion.

The company's board authorized an additional $5.0 billion share buyback plan, and a 124 percent rise in the quarterly dividend to $0.28 per share.

At June 30, 2015, AIG Parent liquidity was $13.6 billion, compared to $11.3 billion at March 31, 2015.

"Our second quarter results demonstrate our steadfast commitment to value-based management – we're taking action today to create long-term value for tomorrow," said Peter D. Hancock, AIG President and Chief Executive Officer. "We continued to proactively manage our capital resources through both common stock and debt repurchases. We significantly reduced our non-core investments in both AerCap and Springleaf."

AIG shares rose 0.42 percent to $64.42 in the after-hours trading session.

Posted-In: profitEarnings News

 

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