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 newsSector newsTweets

American International : Tax Changes, Wildfires Push AIG to $6.7 Billion Loss -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/09/2018 | 12:24am CET
By Aisha Al-Muslim 

American International Group Inc. posted a wider fourth-quarter loss as the global insurance conglomerate was significantly affected by the wildfires in California last year and took a $6.7 billion hit from recent U.S. tax-law changes.

AIG reported $762 million of catastrophe losses for general insurance in the quarter, with $572 million due to the wildfires in California. AIG had estimated about $500 million of losses for the quarter from the wildfires.

AIG reported a $4.2 billion in catastrophe losses in 2017, a company record and more than three times higher than the prior year. However the insurer touted delivering $3.16 billion in adjusted pretax income for the year, up from $1.42 billion in 2016.

Shares of AIG, down 10% over the past year, fell 0.3% in after-hours trading Thursday.

The New York-based company reported a net loss of $6.66 billion, or $7.33 a share, compared with a net loss of $3.04 billion, or $2.96 a share, a year earlier. Its adjusted after-tax income was $526 million, or 57 cents a share, compared with an adjusted after-tax loss of $2.79 billion, or $2.72 a share, in the prior-year quarter. The net loss for the quarter included a charge of $6.7 billion related to the U.S. tax overhaul.

Analysts polled by Thomson Reuters had forecast adjusted earnings of 75 cents a share.

Last month, AIG said it is acquiring Bermuda-based insurer and reinsurer Validus Holdings Ltd. in an all-cash deal valued at $5.56 billion. The transaction is meant to strengthen AIG's global general insurance business and advance the tools available for underwriting, the company said. The transaction is expected to close in mid-2018.

"2017 represents a starting point from which we expect to build, and 2018 will be a year of execution," AIG President and Chief Executive Brian Duperreault said. "Our actions to diversify our business and pursue profitable growth were further reflected" by the acquisition of Validus.

Mr. Duperreault, who became AIG's CEO last May, made clear from the start that he would look for deals to expand AIG. He turned to Bermuda, where he was born and had two previous CEO roles, a well-established hub for property-catastrophe reinsurance.

Reinsurance is an arrangement in which insurers take on the risk of policies that primary insurers sell to businesses and individuals. A big product line for Validus is property-catastrophe reinsurance for hurricanes and other disasters.

AIG recently formed a Bermuda-domiciled legal entity named DSA Reinsurance Co. Ltd. to act as AIG's main runoff reinsurer. DSA Re's purpose is to reinsure AIG's legacy life and retirement and legacy general insurance runoff lines. DSA Re will also allow AIG to consolidate its legacy books in one legal entity and under one management team, AIG said.

Write to Aisha Al-Muslim at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMERICAN INTERNATIONAL GRO
09:40aSafety Insurance Group, Inc. (SAFT) Shares Sold by Fernwood Investment Manage..
AQ
02/16AMERICAN INTERNATIONAL : | Management's Discussion and Analysis of Financial Con..
AQ
02/15AMERICAN INTERNATIONAL : AIG Names Caroline Krass Senior Vice President and Gene..
AQ
02/15AMERICAN INTERNATIONAL : Trademark Application for "SUNAMERICA INCOME BUILDER" F..
AQ
02/15AMERICAN INTERNATIONAL : AIG to Present at the Bank of America Merrill Lynch 201..
AQ
02/09AMERICAN INTERNATIONAL GROUP, INC. ( : AIG) Files An 8-K Results of Operations a..
AQ
02/09AMERICAN INTERNATIONAL : AIG Reports a $6.66 Billion Loss -- WSJ
DJ
02/09AMERICAN INTERNATIONAL : Tax Changes, Wildfires Push AIG to $6.7 Billion Loss --..
DJ
02/08AMERICAN INTERNATIONAL : Trademark Application for "OPTIONALITY" Filed
AQ
02/08AMERICAN INTERNATIONAL : Tax Changes, Wildfires Push AIG to $6.7 Billion Loss
DJ
More news
News from SeekingAlpha
02/20Tracking Carl Icahn's Portfolio - Q4 2017 Update 
02/13Why Low Volatility Investing Doesn't Work 
02/12TAX REFORM LOSERS : Companies With Deferred Tax Assets 
02/09American International Group (AIG) Q4 2017 Results - Earnings Call Transcript 
02/09AIG turns higher after big Q4 miss 
Financials ($)
Sales 2018 49 045 M
EBIT 2018 6 689 M
Net income 2018 4 987 M
Debt 2018 -
Yield 2018 2,41%
P/E ratio 2018 10,73
P/E ratio 2019 9,76
Capi. / Sales 2018 1,10x
Capi. / Sales 2019 1,07x
Capitalization 54 099 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
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 68,4 $
Spread / Average Target 14%
EPS Revisions
Managers
NameTitle
Brian Duperreault President, Chief Executive Officer & Director
Douglas M. Steenland Non-Executive Chairman
Peter Zaffino Global Chief Operating Officer & Executive VP
Siddhartha Sankaran CFO, Chief Accounting Officer & Executive VP
Martha J. Gallo Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN INTERNATIONAL GROUP0.77%54 099
ALLIANZ-1.04%104 485
CHUBB LTD0.79%68 241
ZURICH INSURANCE GROUP3.78%50 638
MARSH & MCLENNAN COMPANIES1.07%42 237
HARTFORD FINANCIAL SERVICES GROUP (THE)-3.11%19 313