American International Group (NYSE: AIG), which celebrates its centennial anniversary this year, reported its first quarter financial results after the bell today. As the insurance giant surpassed earnings and revenue estimates of the Street, the stock was up about 7% in the extended hours of trading. The company reported adjusted EPS of $1.58 on revenue of $12.46 billion. Analysts had expected AIG to report a profit of $1.06 per share on revenue of $12.28 billion.
On a GAAP basis, AIG reported a profit of $654 million or $0.75 per share compared to a profit of $938 million or $1.01 per share in the year-ago quarter.
“Our first quarter results represented strong performance, particularly in General Insurance, reflecting significant foundational work throughout 2018 to position AIG for sustainable, profitable growth,” said CEO Brian Duperreault.
General Insurance segment achieved an underwriting profit of $179 million in Q1 compared to an underwriting loss of $251 million in the prior-year quarter. This was driven by underwriting and lower expense, improved business mix and reinsurance actions. The company achieved an underwriting profit on a calendar year and accident year basis in the first quarter and expects this to continue for the full year.
Life and Retirement segment’s adjusted pre-tax income of $924 million in the recently ended quarter reflected the favorable impact of equity market performance and tightening credit spreads.
Today, the 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 June 28, 2019 to stockholders of record as of June 14, 2019.
AIG stock, which ended flat at $47.11 today, had gained 20% since the beginning of this year, while it dropped 11% in the past 12 months.