American International Group net income down 67%Staff writer ▼ | February 13, 2015
American International Group (AIG) reported a 67 percent drop in net income to $655 million, or $0.46 per share for the fourth quarter ended December 31, compared with $2 billion, or $1.34 per share, a year earlier.
American International Group $0.46 per share for the fourth quarter
AIG bought back expensive debt, leading to an after-tax loss of $824 million, or $0.58 per diluted share. Operating income was hurt by lower workers' compensation discount and total adverse prior-year reserve development.
AIG also declared a dividend of $0.125 per share and authorized the repurchase of up to $2.5 billion worth of shares.
As interest rates remain near zero, bond investors - including insurance companies - have struggled to achieve returns. ■