AIG (AIG, $63.79) Q1 earnings tops estimates

American International Group, Inc. reported first-quarter earnings that topped Zacks Consensus Estimate.

The finance and insurance company’s quarterly adjusted operating earnings came in at $1.30 per share, which exceeded the Zacks Consensus Estimate by 4.8%.

AIG’s bottom line rose +23.8% year over year, on the back of strong  underwriting results within the General Insurance segment. However, the effect was partially offset by reduced net investment income.

Operating revenues climbed +3.5% from the year-ago quarter to $11 billion. However, it missed the consensus estimate by 1.6%.

Net investment income fell -11% year over year in the quarter due to reduced call and tender income, fair value option equity and fixed maturity securities experiencing lower returns as well as a decrease in income from hedge funds.

The company’s General Insurance segment’s net premiums written of $6.6 billion grew 2% year over year. Life and Retirement premiums grew +40% year-over-year to $840 million.

The board of directors approved a boost in share buyback authorization to $6.5 billion. The increase includes any leftover amounts under prior authorization.

A quarterly cash dividend of 32 cents per common share has been approved by the board of directors. The dividend will be paid out on Jun 30, 2022, to shareholders of record as of Jun 16.