AIG Q1 Profit Beats Estimates; Shares Up 6%

(RTTNews) - American International Group, Inc. (AIG) said its first-quarter results represented strong performance, particularly in General Insurance where it achieved an underwriting profit driven by underwriting and expense discipline, improved business mix and reinsurance actions. Also, Life and Retirement posted a double-digit adjusted return on common equity benefiting from diversification of product and distribution channels.

Brian Duperreault, CEO said: "We expect Life and Retirement to continue to deliver a low- to-mid teens adjusted return on common equity, and we expect to reach a double-digit adjusted ROCE for consolidated AIG within three years."

For the first-quarter, adjusted after-tax income was $1.4 billion, or $1.58 per diluted share, compared to $963 million, or $1.04 per diluted share, in the prior-year quarter. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $1.06 for the quarter. Analysts' estimates typically exclude special items. First-quarter total consolidated net investment income was $3.9 billion, compared to $3.3 billion, a year ago.

In General Insurance, adjusted pre-tax income was $1.3 billion including an underwriting income of $179 million and net investment income of $1.1 billion.

As of March 31, 2019, book value per common share was $69.33 compared to $65.04 at December 31, 2018. Adjusted book value per common share was $55.47, up slightly from prior-year end.

AIG said its Board of Directors declared a quarterly dividend of $0.32 per share on common stock, par value $2.50 per share. The dividend is payable on June 28, 2019 to stockholders of record at the close of business on June 14, 2019.

Shares of AIG were up more than 6% after hours.