AIG Profit Falls Short, To Buy Back Up To $2.5 Billion Of Stock

American International Group Inc. said Thursday it had net income of $655 million, or 46 cents a share, in the fourth quarter, down from $2.0 billion, or $1.34 a share, in the year-earlier period. Excluding special charges, the company said it had EPS of 97 cents, falling short of the $1.05 consensus of analysts polled by FactSet. The company has changed its reporting to focus on two segments: commercial insurance and consumer insurance. "This segmentation reinforces our focus on the ultimate client group being served, not the product being delivered, and we've made acquisitions and investments along these lines," Chief Executive Peter Hancock said in a statement. Separately, the company said it will buy back up to another $2.5 billion of shares. Shares were barely changed in after-hours trade, but are down 3.5% in the last three months, while the S&P 500 has gained 2.5%.

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