AIG Reports Second Quarter 2015 Net Income of USD 1.8 Billion

18 August 2015 —
American International Group, Inc. today reported net income attributable to AIG of USD 1.8 billion, or USD 1.32 per diluted share, for the quarter ended June 30, 2015, compared to USD 3.1 billion, or USD 2.10 per diluted share, for the second quarter of 2014. Compared to the prior-year quarter, second quarter 2015 net income attributable to AIG declined primarily due to higher loss on extinguishment of debt from ongoing liability management activities, lower capital gains from sales of investments, and a net gain on the sale of divested businesses related to the sale of International Lease Finance Corporation in the second quarter of 2014.

After-tax operating income was USD 1.9 billion, or USD 1.39 per diluted share, for the second quarter of 2015, compared to USD 1.8 billion, or USD 1.23 per diluted share, in the prior-year quarter. Compared to the prior-year quarter, operating results in the second quarter of 2015 reflected higher pre-tax operating earnings of AerCap Holdings N.V. (AerCap) and the fair value of PICC Property & Casualty Company Limited (PICC P&C) and People's Insurance Company (Group) of China Limited (PICC Group) investments, partially offset by a decrease in income from insurance operations.

"Our second quarter results demonstrate our steadfast commitment to value-based management - we're taking action today to create long-term value for tomorrow," said Peter D. Hancock, AIG President and Chief Executive Officer. "We continued to proactively manage our capital resources through both common stock and debt repurchases. We significantly reduced our non-core investments in both AerCap and Springleaf. These actions simplify our balance sheet and improve our risk profile. Our Board's approval of an additional USD 5.0 billion share repurchase authorization, and a 124 percent increase in the quarterly dividend to USD 0.28 per share, highlights our commitment to shareholder return and our positive outlook for long-term profitability."

"We made progress towards our financial targets," Mr. Hancock continued. "Book value per share excluding AOCI and DTA increased 10 percent and GOE declined 4 percent, both compared to the prior-year quarter. Normalized ROE for the quarter was 6.7 percent and year-to-date was 7.3 percent, reflecting the shifting profitability dynamics in Commercial Insurance markets. Adjusting for the impact of the AerCap sale, we expect to reach our financial ROE target."

"Our focus on value and long-term sustainability benefits our clients and our shareholders. We'll continue to balance growth, profitability and risk as we work to become our clients' most valued insurer." Read the full story

AIG Reports Second Quarter 2015 Net Income of USD 1.8 Billion
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