HALISTER: AIG 3Q Oper. EPS Trails Est. by 20c; Boosts Shr Buyback by $3b

AIG 3Q Oper. EPS Trails Est. by 20c; Boosts Shr Buyback by $3b

(Bloomberg) -- AIG 3Q oper. EPS $1.00, est. $1.20; includes 37c/share after-tax charge in Institutional Markets tied to updated mortality assumptions for legacy structured settlements.
  • Operating ROE 6.7% vs 3.5% y/y
  • Book value per share $85.02 vs $83.08 q/q
  • Commercial Insurance results:
    • Pre-tax oper. income $729m vs $592m y/y
    • Combined ratio 105.3 vs 102.3 y/y
    • Net premiums written $4.36b vs $5.28b y/y
    • Net premiums earned $4.50b vs $5.04b y/y
    • Catastrophe losses $253m vs $88m y/y
    • Net investment income $965m vs $710m y/y
  • Corporate and Other results:
    • Institutional Markets pre-tax oper. loss $526m vs $84m gain y/y
    • United Guaranty pre-tax oper. income $130m vs $133m y/y
  • Retirement segment pre-tax oper. income $1.11b vs $635m y/y
  • Boosts share buyback authorizations by $3.00b; AIG repurchased $2.3b of shares in 3Q
  • CEO Peter Hancock: “We remain committed to our 2017 financial targets, are ahead of plan in expense management, and continue to target a 6 point reduction in our Commercial accident year loss ratio, as adjusted, despite volatile quarterly results”
  • Call 8am Nov. 3; webcast
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Alert: HALISTER
Source: BFW (Bloomberg First Word)

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AIG US (American International Group Inc)

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Peter Hancock (American International Group Inc)

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