UPDATE: American Int'l Group (AIG) Tops Q2 EPS by 26c; Decalres Dividend, Approves $1B Buyback
American International Group (NYSE: AIG) reported Q2 EPS of $1.12, $0.26 better than the analyst estimate of $0.86.
Book value per common share, excluding Accumulated other comprehensive income (AOCI), of $61.25, up 11 percent from the prior-year second quarter. Reported book value per share declined 2 percent from the prior quarter to $66.02 reflecting the impact of the recent rise in interest rates on unrealized investment gains.
Insurance operating income of $2.3 billion, up 21 percent from the prior-year second quarter. Liability management helped reduce debt in the second quarter by $931 million.
We are pleased with our continued progress and focus on fundamentals as the new AIG – a stronger, simpler, more focused company with a renewed vision and vigor for the future,commented CEO Robert Benmosche.
Our profits this quarter illustrate the success of our continued focus on our core insurance operations and ongoing commitment to capital management. Our property casualty, life and retirement, and mortgage insurance businesses all posted strong operating results. In particular, we witnessed strength this quarter in underwriting improvements and the successful continuation of the shift in our business mix in AIG Property Casualty, disciplined spread management in AIG Life and Retirement, strong performance in our investments, and continued improvement in our mortgage insurance business where about half of net premiums earned in the second quarter of this year were from business written post-2008.
In addition to the strong results, AIG declared a quarterly dividend of $0.10 per share and approved a $1 billion common stock buyback. The dividend is payable on Thursday, September 26, 2013, to stockholders of record at the close of business on Thursday, September 12, 2013.
For earnings history and earnings-related data on American International Group (AIG) click here.