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AIG net income rises 18 per cent in second-quarter

The insurer declares first dividend since bailout in 2008.

American International Group (AIG) has posted a net income of $2.75bn for the second-quarter ended 30 June 2013, an increase of 17.9 per cent compared to $2.33bn for the same period last year.

Division wise, AIG Property Casualty reported an operating income of $1.1bn in the second quarter of 2013 (2012: $936m), while AIG Life and Retirement reported an operating income of $1.2bn (2012: $933m).

The company’s residential mortgage guaranty operations division, United Guaranty Corporation, posted an operating income of $73m for the period ($43m last year), while AIG’s other operations division reported an operating income of $126m in second-quarter of 2013 (2012: $639m).

The company declared its first quarterly dividend of $0.10 per share since the bailout it received in 2008. It also authorised the repurchase of shares up to $1bn at $2.50 per share.

AIG said that it reduced debt in the second-quarter of 2013 by $931m by effectively managing liability.

Robert Benmosche, president and CEO of AIG, said: “Our profits this quarter illustrate the success of our continued focus on our core insurance operations and ongoing commitment to capital management. Our property casualty, life and retirement, and mortgage insurance businesses all posted strong operating results.”

Meanwhile, the company said that its aircraft leasing unit International Lease Finance Corporation (ILFC) is yet to find a buyer. Reuters has reported that talks are on to sell it to a Chinese consortium for approximately $4.8bn.