AIG shareholders race away amid poor financial start to the year
AIG’s share price continued to plunge today as worried investors raced for the exit on bad financial news.
Shares had fallen nearly 10% today, amid an underwriting loss and results that fell well short of analysts’ expecations.
Analysts had been expecting adjusted after tax income per share of $1.25, according to a Bloomberg survey of analysts, but AIG landed on a disappointing $1.04.
The failure to meet expectations will have investors worrying new boss Brian Duperreault is leading yet another false down at AIG, which has endured a turbulent period of see-sawing results.
But Duperreault was upbeat.
He said: “We made progress towards delivering consistent results with net favourable reserve development, a stable general insurance accident year loss ratio, and solid life and retirement results.
“Our emphasis on fundamental underwriting practices, increasing accountability across our businesses, and disciplined decision making is taking hold.”
Overall net income fell to $938 million, or $1.01 a share, from $1.19 billion, or $1.18, a year earlier.