AIG Shares Gain On Strong Earnings, New Buyback Plan

By Sue Chang Markets MarketWatch Pulse

Shares of American International Group Inc. gained in Wednesday's extended session after the insurer posted better-than-expected earnings and announced a sizeable stock buyback package. AIG reported it swung to first-quarter earnings of $1.19 billion, or $1.18 a share, from a loss of $183 million, or 16 cents a share, a year earlier. Analysts surveyed by FactSet had forecast earnings of $1.07 a share. The company cited an improvement in operating results in its commercial and consumer businesses for the recovery in its bottom line. The AIG board also approved a new $2.5 billion stock buyback plan and declared a quarterly dividend of 32 cents a share. AIG shares rose 2.3% after hours.

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