American International Group Inc, one of the largest US insurers, reported better-than-expected first-quarter operating profit on Wednesday, helped by investment returns and cost cuts. AIG reported operating earnings of $1.37 billion, or $1.36 per share, compared with $765 million, or 64 cents per share, in the year-ago quarter. That easily beat Wall Street's average estimate of $1.08 per share, according to Thomson Reuters I/B/E/S.
The New York-based insurer, which is the largest US underwriter of commercial property and casualty policies, also said its board authorized an additional $2.5 billion in share repurchases, putting the company closer to its goal of returning $25 billion of capital to investors by year-end. The company has returned $18.1 billion to shareholders through buybacks since announcing the plan last year. The results mark a rebound from a surprisingly wide loss in the fourth quarter, which stunned investors and AIG's board, triggering the resignation of Chief Executive Peter Hancock.