Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  American International Group    AIG

AMERICAN INTERNATIONAL GROUP (AIG)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

American International : AIG swings to quarterly loss, adds $836 million to reserves

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/03/2017 | 12:45am CEST
FILE PHOTO: A banner for American International Group Inc hangs on the facade of the New York Stock Exchange

NEW YORK (Reuters) - American International Group Inc (>> American International Group) posted a bigger-than-expected quarterly loss on Thursday as the insurer booked huge catastrophe losses, and said it had set aside $836 million to meet losses related to prior-year accident claims.

NEW YORK (Reuters) - American International Group Inc (>> American International Group) posted a bigger-than-expected quarterly loss on Thursday as the insurer booked huge catastrophe losses, and said it had set aside $836 million to meet losses related to prior-year accident claims.

Hefty losses from claims occurring in prior years have been an ongoing issue for AIG, and its shares were down 2.3 percent at $63.51 in extended trading after it reported third-quarter results.

The New York-based company is one of the largest U.S. commercial insurers.

In February, AIG also posted a bigger-than-expected fourth-quarter loss, largely due to a $5.6 billion reserve charge to cover possible future claims related to long-term risks on U.S. commercial insurance policies it had already written.

AIG agreed in January to pay about $10 billion to a unit of Warren Buffett's Berkshire Hathaway Inc (>> Berkshire Hathaway) to take on the bulk of the risk associated with those policies. The Berkshire deal followed a $3.6 billion increase to reserves chalked up by AIG in the last quarter of 2015.

Chief Executive Officer Brian Duperreault, widely hailed in the industry as a turnaround expert, took charge of AIG in May. He replaced Peter Hancock, who said in March that he would step down after the insurer's financial performance frustrated shareholders and the insurer's board of directors.

AIG conducts quarterly reviews of reserves for its various lines.

In August, AIG Chief Financial Officer Sid Sankaran said the insurer had boosted the number of reviews it conducted during the second quarter, compared to the previous year. The insurer reviewed about $16 billion in total reserves, in challenging areas such as medical malpractice and environmental, Sankaran said at the time.

In the third quarter ended Sept. 30, the insurer recorded pre-tax catastrophe losses of $3 billion related to hurricanes Harvey, Irma and Maria, in line with previously disclosed estimates.

Insurers and reinsurers across United States had issued profit warnings after the storms tore into parts of the country and ravaged several Caribbean islands.

AIG swung to a net loss of $1.74 billion, or $1.91 per share, in the quarter, compared with a profit of $462 million, or 42 cents per share, a year earlier.

Operating loss was $1.22 per share compared with an operating profit of $1.01 per share in the year-ago period.

Analysts had expected a loss of 79 cents per share, according to Thomson Reuters I/B/E/S.

Operating expenses fell 15.3 percent to $2.15 billion, partly cushioning the blow from catastrophe losses.

S&P Global Ratings said AIG’s “weak results” did not immediately affect the insurer’s ratings.

S&P analysts cautioned that underwriting performance had declined in the quarter, however. They also said an earlier decision by Duperrealt to halt guidance to shareholders about possible future earnings “may imply a longer timeframe to meaningfully turn around the commercial insurance business.”

(Reporting by Nikhil Subba in Bengaluru and Suzanne Barlyn in; New York; Editing by Shounak Dasgupta and Tom Brown)

Stocks treated in this article : American International Group, Berkshire Hathaway
Stocks mentioned in the article
ChangeLast1st jan.
BERKSHIRE HATHAWAY -0.08% 298840 Delayed Quote.0.85%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMERICAN INTERNATIONAL GRO
04/23AMERICAN INTERNATIONAL GROUP, INC. ( : AIG) Files An 8-K Other Events
AQ
04/20AMERICAN INTERNATIONAL GROUP INC : Other Events, Financial Statements and Exhibi..
AQ
04/20AMERICAN INTERNATIONAL : AIG to Redeem 8.000% and 8.625% Junior Subordinated Deb..
BU
04/19AMERICAN INTERNATIONAL : AIG to transfer European business to new UK, Luxembourg..
RE
04/19AMERICAN INTERNATIONAL : AIG Authorises Two New Entities in the UK and Luxembour..
BU
04/17AMERICAN INTERNATIONAL : Force Behind Industry's First Cost of Risk Survey Berry..
AQ
04/13AMERICAN INTERNATIONAL : AIG and EY Announce Strategic Tax Compliance and Techno..
AQ
04/12AMERICAN INTERNATIONAL : AIG 2018 Annual Meeting Webcast Details
BU
04/12AMERICAN INTERNATIONAL : AIG Names Anthony Vidovich as Chief Claims Officer, Gen..
BU
04/09American International Group Inc. Purchases Shares of 6,795 NI Holdings Inc
AQ
More news
News from SeekingAlpha
04/23American International (AIG) Presents At RSA Conference 2018 - Slideshow 
04/21STOCKS TO WATCH : Earnings Blockbusters And Trump Talks Drug Prices 
04/20Vilas Fund, LP Q1 '18 Letter To Partners - #28 Since Inception, Long Pharma 
04/13Top 10 Net Payout Yields - April 2018 
03/26Money flows back into financial sector 
Financials ($)
Sales 2018 49 439 M
EBIT 2018 5 730 M
Net income 2018 5 041 M
Debt 2018 -
Yield 2018 2,53%
P/E ratio 2018 9,95
P/E ratio 2019 9,11
Capi. / Sales 2018 1,01x
Capi. / Sales 2019 0,98x
Capitalization 50 024 M
Chart AMERICAN INTERNATIONAL GRO
Duration : Period :
American International Gro Technical Analysis Chart | AIG | US0268747849 | 4-Traders
Technical analysis trends AMERICAN INTERNATIONAL GRO
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 67,6 $
Spread / Average Target 22%
EPS Revisions
Managers
NameTitle
Brian Duperreault President, Chief Executive Officer & Director
Douglas M. Steenland Independent Non-Executive Chairman
Peter Zaffino Global Chief Operating Officer & Executive VP
Siddhartha Sankaran Chief Financial Officer & Executive VP
Martha J. Gallo Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN INTERNATIONAL GROUP-6.97%50 024
ALLIANZ1.88%104 104
CHUBB LTD-5.37%64 135
ZURICH INSURANCE GROUP5.97%48 880
MARSH & MCLENNAN COMPANIES1.86%42 139
HARTFORD FINANCIAL SERVICES GROUP (THE)-7.55%18 779