Tomahawk, WI 08/05/2014 (Basicsmedia) – American International Group Inc. (NYSE:AIG) reported better than expected results for the second quarter despite a backdrop of poor results across the entire sector. AIG reported a 12.5% increase in quarterly profit helped by impressive performance of its major businesses as well as the sale of its aircraft leasing unit. Investors had muted expectations against the company because most of the other major players in the industry had reported weaker results for the same quarter.
“Am hearing this results as they are coming across the tape right now, and they beat my numbers and I was above consensus. I was looking for a dollar twelve a share, and they beat that. This numbers generally sound better than what I was expecting, and I think owing to this quarter, investors had a muted expectation because most of AIG’s peers had kind of weak results,” said standard and Poor’s analyst, Catherine Seifert, in an interview on CNBC.
AIG reported strong organic growth highlighted by $1.3 billion from its property-casualty division against $1 billion a year ago with life insurance and mortgage business also growing in the quarter. It is also worth noting that American International Group Inc. (NYSE:AIG) ’s results were derived’ before the company initiated stock buyback.
“It is some organic growth which is very positive, and I think the other important thing to remember is AIG has sort of two drivers or two dynamics. There is a business that is the ongoing business, and there is the restructuring activities, and I think it is also important to remember the sale of ILFC for terms higher than what everyone expected,” said Seifert.
During the quarter, American International Group Inc. (NYSE:AIG) bought about $1.2 billion worth of shares as part of its $2 billion share buyback project. AIG is officially in the middle of a turnaround after almost collapsing during the epitome of the financial crisis. The giant insurance company has already paid about $180 billion in bailout funds and is now entirely focused on its core insurance business.