AIG Shares Gain On Strong Earnings, New Buyback Plan

By Sue ChangMarketsMarketWatch 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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