American International Group Earnings Cheat Sheet: Swung to a Profit

S&P 500 (NYSE:SPY) component American International Group Inc (NYSE:AIG) reported its results for the second quarter. American International Group is a holding company which, through its subsidiaries, is engaged in insurance and insurance related activities in the global marketplace.

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American International Group Inc Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $1.84 billion ($1 per diluted share) in the quarter. The property and casualty insurance company had a net loss of $2.66 billion or a loss of $19.57 per share in the year earlier quarter.

Actual vs. Wall St. Expectations: The mean estimate for AIG was $1.15 per share per share.

Quoting Management: “Our results for the second quarter demonstrate the hard work from employees across all of our business units and our unrelenting focus on performance,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We also achieved a significant recapitalization milestone during the quarter with an $8.7 billion common stock offering, consisting of the issuance and sale of 100 million shares by AIG and the sale of 200 million shares at a profit by the U.S. Treasury. Our continued improving operating results should provide a catalyst for the U.S. Treasury to sell its shares at a profit for the taxpayers. Now that we have fully repaid our debt to the Federal Reserve, we are on the right path to demonstrate AIG’s long-term value as an investment-grade company independent of government support.”

Competitors to Watch: Hartford Financial Services (NYSE:HIG), HCC Insurance Hldgs., Inc. (NYSE:HCC), American Financial Group (NYSE:AFG), ACE Limited (NYSE:ACE), The Chubb Corporation (NYSE:CB), The Travelers Companies, Inc. (NYSE:TRV), White Mountains Insurance Group, Ltd. (NYSE:WTM), CNA Financial Corporation (NYSE:CNA), and Loews Corporation (NYSE:L).

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(Source: Xignite Financials)

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