By Leslie Scism
American International Group Inc. said its first-quarter profit
jumped 53%, buoyed by the sale of investment holdings, while the
one-time government ward continued a strong share-buyback
program.
Net income rose to $2.47 billion, or $1.78 a share, including
$874 million in net realized capital gains from investment sales
that included a stake in a Chinese insurer. In the prior-year
period, the New York insurance conglomerate logged $1.61 billion,
or $1.09 a share, in net income.
AIG's operating income, which excludes realized capital gains
and losses and is closely watched by investors, slipped 2.9% to
$1.69 billion, from $1.74 billion, but on a per-share basis rose to
$1.22 from $1.18 a share.
The operating results exceeded Wall Street expectations of $1.19
a share as compiled by Thomson Reuters. AIG shares edged up
fractionally in after-hours trading.
The results reflect the second full quarter of management of the
company by Peter Hancock, who took over last September as chief
executive. Mr. Hancock succeeded Robert Benmosche, who restored the
company to profitability and helped it fully repay a
financial-crisis bailout package that had topped $180 million at
its peak.
Mr. Benmosche, who died in February, slimmed down the
once-sprawling financial-services behemoth. He sold many businesses
to raise money to pay back the government and narrowed the
company's focus primarily to a world-wide property-casualty
insurance business and a U.S. life-insurance and
retirement-services business.
Write to Leslie Scism at leslie.scism@wsj.com
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