AIG's first-quarter earnings double on investments
Net income climbs to $3.21bn.
The insurance services provider American International Group (AIG), which experienced severe difficulties during the financial crisis, has reported a net income of $3.21bn for the first quarter ended 31 March 2012, compared to $1.3bn for the same period last year.
Diluted earnings per share and after-tax operating income per share were $1.71 and $1.65, respectively (2011: $0.31 and $1.34).
The group’s Chartis division has reported an operating income of $1bn – a substantial improvement on last year's loss of $424m. The division continued to benefit from its emphasis on growth economies and its success this quarter was helped by the very low number of natural catastrophe claims.
SunAmerica Financial Group posted an operating income of $1.3bn (2011: $1.2bn). Premiums, deposits and other considerations totalled $5.6bn (2011: $6.4bn).
International Lease Finance Corp (ILFC) – AIG's Los Angeles-based aircraft lessor – reported an operating income of $119m (2011: $117m), with rental revenues of $1.1bn.
United Guaranty Corporation (UGC), which handles residential mortgage operations, reported an operating income of $8m (2011: $14m).
AIG’s other operations reported an operating income of $2.3bn (2011: $2.1bn).
Robert Benmosche, president and CEO, said:
AIG has again delivered another strong quarter with our core insurance businesses all posting profits. We also continue to make good on our promise to help the US government profit from its investment in AIG. During the quarter, we retired the preferred interests of AIA Aurora LLC (AIA SPV) one year ahead of schedule and achieved the milestone of reducing total outstanding or authorised US government assistance by 75 per cent.