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Net Income Attributable to AIG of $2.7 Billion and Diluted Earnings Per Share of $1.84 Second quarter 2013 after-tax operating income attributable to AIG of $1.7 billion, after-tax operating income per share attributable to AIG of $1.12
NEW YORK, Aug 01, 2013 (BUSINESS WIRE) -- --On August 1, 2013, our Board of Directors declared a quarterly dividend on AIG common stock, par value $2.50 per share (AIG Common Stock), of $0.10 per share and authorized the repurchase of shares of AIG Common Stock, with an aggregate purchase price of up to $1.0 billion. The announced actions were approved without assuming a sale of International Lease Finance Corporation
--Seventh consecutive quarter of positive after-tax operating income attributable to AIG, with solid performance across all areas of the company
--Insurance operating income of $2.3 billion, up 21 percent from the prior-year second quarter
--Liability management helped reduce debt in the second quarter by $931 million
--As of August 1, 2013, the closing of the ILFC transaction has not occurred
American International Group, Inc. AIG +6.65% today reported net income attributable to AIG of $2.7 billion for the quarter ended June 30, 2013, compared to $2.3 billion for the second quarter of 2012. After-tax operating income attributable to AIG was $1.7 billion for the second quarters of both 2013 and 2012.
Diluted earnings per share attributable to AIG were $1.84 for the second quarter of 2013, compared with $1.33 for the second quarter of 2012. After-tax operating income per share attributable to AIG was $1.12 for the second quarter of 2013, compared with $0.96 in the second quarter of 2012. Net income attributable to AIG for the quarter exceeded after-tax operating income attributable to AIG largely due to valuation allowance releases associated with deferred tax assets from capital loss carryforwards.
"AIG's solid performance this quarter demonstrates the strength of our diverse global operations," said Robert H. Benmosche, President and Chief Executive Officer of AIG. "These results underscore our businesses' strong fundamentals and reflect our continued commitment to meeting and exceeding the expectations of our customers across all facets of our organization.
"We are pleased with our continued progress and focus on fundamentals as the new AIG - a stronger, simpler, more focused company with a renewed vision and vigor for the future," Mr. Benmosche added. "Our profits this quarter illustrate the success of our continued focus on our core insurance operations and ongoing commitment to capital management. Our property casualty, life and retirement, and mortgage insurance businesses all posted strong operating results. In particular, we witnessed strength this quarter in underwriting improvements and the successful continuation of the shift in our business mix in AIG Property Casualty, disciplined spread management in AIG Life and Retirement, strong performance in our investments, and continued improvement in our mortgage insurance business where about half of net premiums earned in the second quarter of this year were from business written post-2008."
Mr. Benmosche concluded, "Our dedication to operating as one unified company is yielding positive results, and we continue to believe that the benefits of increased collaboration across our company will build and improve upon this quarter's strong earnings."
Capital and Liquidity
-- AIG shareholders' equity totaled $97.5 billion at June 30, 2013.
-- Book value per common share, excluding Accumulated other comprehensive income (AOCI), of $61.25, up 11 percent from the prior-year second quarter. Reported book value per share declined 2 percent from the prior quarter to $66.02 reflecting the impact of the recent rise in interest rates on unrealized investment gains.
-- Cash dividends and loan repayments to AIG Parent from AIG Property Casualty and AIG Life and Retirement subsidiaries totaled $1.3 billion in the second quarter of 2013.
-- AIG Parent liquidity sources amounted to approximately $14.7 billion at June 30, 2013, including $11.0 billion of cash, short-term investments, and unencumbered fixed maturity securities.
-- Liability management helped reduce debt in the second quarter of 2013 by $931 million, including the redemption of $750 million aggregate principal amount of our hybrid securities.
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