Insurance titan American International Group posts lower than expected profits for third consecutive quarter
US insurance titan American International Group (AIG) reported a lower-than-expected quarterly operating profit in the third consecutive quarter to fall below analysts' estimates.
AIG's profits suffered as income from underwriting and returns on investments declined. The company's operating profit fell 54 per cent to $773m (£529m) in the first quarter, which included $122m in restructuring costs. The group highlighted progress it had made in cost-cutting and restructuring.
Analysts had expected AIG to report earnings per share of $1, although the company disclosed significantly lower first-quarter adjusted earnings of 65 cents per share.
The company's share price closed at up 0.75 per cent on Monday at $56.68.
[charts-share-price id="233"]
Total operating costs fell around seven per cent to $2.59bn, while pre-tax income in AIG's commercial property and casualty insurance business (its largest segment) fell 38.5 per cent to $720m in the quarter to March 31.
"Although our first quarter results were impacted by market volatility on investments, the underlying operating results demonstrate progress on our strategic objectives," Peter Hancock, AIG president and chief executive, said in a statement.
"While part of our current strategy is to streamline our business, we're still making targeted investments in our future," Hancock added.