American International Group (AIG) reported a narrower loss in the fourth quarter helped by an income tax benefit compared to an expense in the previous year. The results missed analysts’ expectations. Following this, the stock inched down over 3% in the after-market session.
Net loss was $622 million or $0.70 per share, narrower than the previous year’s loss of $6.7 billion or $7.33 per share. Adjusted loss was $0.63 per share compared to a profit of $0.57 per share a year ago. The adjusted results were hurt by claims from policyholders who suffered losses in typhoons in Asia and the US.
Total net investment income dropped by 20% as it was significantly impacted by market performance. Net investment income from its insurance companies, including the Legacy insurance portfolios, decreased 18.1% due to the net losses on alternative and equity securities.
Net catastrophe losses were $630 million or $0.71 per share for the fourth quarter, which was consistent with the previously disclosed range.
The results showed positive improvements in General Insurance, reflecting actions the company took throughout the year to reposition and strengthen the business, and Life and Retirement remains a stable source of earnings with attractive returns. Results were negatively impacted by performance in both equity and credit markets, catastrophe losses, as well as modest net unfavorable prior year loss reserve development.
During the quarter, total premium and deposits rose by 2.5% to $8.2 billion. AIG’s book value per share plunged to $65.04 from $72.49 in the fourth quarter of 2017. In mostly all the business segments, underwriting loss widened compared to last year.
Separately, the company’s board of directors declared a quarterly dividend of $0.32 per share on AIG Common Stock, par value $2.50 per share. The dividend is payable on March 29, 2019, to stockholders of record at the close of business on March 15, 2019.
Shares of AIG ended Wednesday’s regular session up 0.80% at $44.18 on the NYSE. The stock has fallen over 25% in the past year while it has risen over 4% in the past three months.
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Comments