AIG Profit Misses Estimate

(RTTNews) - American International Group Inc (AIG) on Thursday reported fourth-quarter net earnings of $655 million or $0.46 per share compared with $1.98 billion or $1.34 per share last year.

Results for the latest quarter included an after-tax loss on extinguishment of debt of $824 million, or $0.58 per share, associated with liability management activities.

Excluding items, operating earnings for the quarter were $0.97 per share compared with $1.13 per share a year ago.

On average, 23 analysts polled by Thomson Reuters estimated earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

AIG said its operating earnings reflected a pre-tax reduction in workers' compensation discount of $568 million, as well as adverse prior year reserve development, net of premium adjustments, of $297 million before taxes. Also, the Life operating segment recorded a pre-tax charge of $104 million to increase reserves for incurred but not reported death claims.

Within the company's commercial insurance segment, net premiums earned at its property casualy segment fell 2% from last year to $5.2 billion, premiums earned at mortgage guaranty rose 17% to $238 million, and revenues at institutional markets slid 22% to $548 million.

At consumer insurance segment, retirement revenues slid 5% to $2.47 billion, life revenues were almost flat at $1.58 billion, and earned premiums at personal insurance fell 5% to $2.93 billion.

AIG's board authorized an additional share buyback of up to $2.5 billion and declared a dividend of $0.125 per share, par value $2.50 per share.