Insurance company American International Group (NYSE:$AIG) saw its share price increase after releasing a successful second quarter earnings report. The insurance company’s second quarter earnings surpassed average analyst expectations. AIG’s stock went up as much as 2.4% during after-hours trading on Wednesday, August 2.
AIG’s net income this quarter was $1.13 billion, a decline from the $1.91 billion in 2016’s second quarter. However, adjusted earnings per share was $1.53 – not including recurring items – in the second quarter, a rise from the $1.15 the company saw in 2016’s second quarter. The adjusted earnings also went above FactSet analysts’ average expectation of $1.20. As well, consolidated adjusted return on equity went up from 7.9% to 10.5% in the second quarter. AIG’s book value per share decreased year-over-year to $81.62, but it still surpassed analysts’ expectations of $81.06. Net premiums written in commercial insurance went down by 15% but combined ratio increased to 102.7 year-over-year. Operating revenue was $5.98 billion this quarter, a 2% decrease year-over-year.
“While market conditions remain challenging, we are committed to disciplined underwriting and are focused on investing in profitable growth,” AIG’s CEO Brian Duperreault stated.
AIG’s stock has risen 0.9% year-to-date. To compare, SPDR Financial Select Sector ETF (NYSEARCA:$XLF) has gone up 8.9% year-to-date while the S&P 500 (INDEXSP:$.INX) has risen by 10.7% year-to-date.
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