AIG Shares Fall After Company Reports Earnings Below Expectations
American International Group Inc. shares fell 2.6% late Wednesday after the insurance company reported third-quarter earnings below Wall Street expectations. AIG said it earned $462 million, or 42 cents a share, in the third quarter, reversing a loss of $231 million, or 18 cents a share, in the prior-year quarter. Analysts polled by FactSet had expected per-share earnings of $1.13 for the quarter. Net income during the quarter included an after-tax net realized capital losses of $526 million, or 48 cents a share, mostly on higher foreign-exchange losses related to the British pound weakening following the Brexit vote, AIG said. After-tax operating income was $1.1 billion, or $1 a share, for the third quarter of 2016, up from $691 million, or 52 cents a share, in the prior-year quarter. AIG's board of directors has authorized an additional increase to its previous share buyback of $3 billion, which results a remaining authorization of about $4.4 billion. The board also declared a cash dividend of 32 cents a share, payable Dec. 22 to shareholders of record on Dec. 8. Shares of AIG had ended the regular trading session down 0.2%.
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