American International Group Q2 net income $1.9 billion
Staff Writer |
American International Group (AIG) reported net income of $1.9 billion, or $1.68 per diluted share, for the second quarter of 2016.
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This compares to $1.8 billion, or $1.32 per diluted share, in the prior-year quarter.
After-tax operating income was $1.1 billion, or $0.98 per diluted share, for the second quarter of 2016, compared to $1.9 billion, or $1.39 per diluted share, in the prior-year quarter.
Year-over-year comparisons of net income and after-tax operating income were impacted by an adverse change in net loss reserve discount on workers’ compensation reserves of $455 million after tax, or $0.36 per diluted share.
Year-over-year comparisons of net income and after-tax operating income also were impacted by a decline in earnings from market sensitive assets of $631 million after tax, or $0.44 per diluted share.
This decline reflects the strong returns on market sensitive assets in the second quarter of 2015, as well as the impact of sales of assets as part of the plan to return capital to shareholders.
The year-over-year comparison for net income was also favorably impacted by an increase in net realized capital gains of $576 million after tax, or $0.52 per diluted share.
AIG board authorized the repurchase of additional shares of AIG Common Stock with an aggregate purchase price of up to $3.0 billion.
During the six-month period ended June 30, 2016, AIG repurchased approximately $6.2 billion of AIG Common Stock and $263 million in warrants to purchase shares of AIG Common Stock, pursuant to prior authorizations from the board.
AIG repurchased an additional approximately $698 million of AIG Common Stock through August 2, 2016. AIG’s aggregate remaining share repurchase authorization, inclusive of this announced $3.0 billion authorization, is approximately $4.0 billion.
The board declared a quarterly dividend of $0.32 per share on AIG Common Stock, par value $2.50 per share. The dividend is payable on September 29, 2016, to stockholders of record at the close of business on September 15, 2016. ■