After-tax operating income was USD 1.7 billion, or USD 1.22 per diluted share, for the first quarter of 2015, compared to USD 1.7 billion, or USD 1.18 per diluted share, in the prior-year quarter. Operating results in the first quarter of 2015 reflected improved underwriting results in Commercial Insurance, lower alternative investment returns compared to the strong level a year ago, as well as the continued effect of the low interest rate environment on net investment income. Additionally, after-tax operating income reflected an unfavorable year-over-year impact from changes in the discount on workers' compensation reserves.
"Our first quarter results showed progress on our financial objectives, and our commitment to balance sheet management," said Peter D. Hancock, AIG President and Chief Executive Officer. "Normalized ROE excluding AOCI and DTA of 7.8 percent increased approximately 40 basis points from the full-year 2014 baseline. GOE declined 3 percent from the prior-year quarter as we continued to simplify our processes and organizational structure. Book value per share excluding AOCI and DTA increased 14 percent from the prior-year quarter. We continued to proactively manage our capital resources through both common stock and debt repurchases. We further optimized our funding profile by replacing high-cost legacy debt with new issuances at lower yields. These actions reflect our improved risk profile, and combined with continued insurance company distributions, have contributed to the Board's approval of an additional USD 3.5 billion share buyback authorization."
"Our diversified business model and balance sheet deleveraging highlight how we have reduced our overall risk level," Mr. Hancock continued. "Our focus on value and long-term sustainability benefits our clients and our shareholders, and leverages our global scale to achieve the right balance between growth, profitability, and risk."
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AIG reports 1Q2015 net income of USD 2.5 billion