Shares of American International Group surged 7.6% in the after-hours trading Tuesday, after the company reported an adjusted EPS of $1.58 in the first quarter that beat consensus estimates of $1.06 and was also higher than $1.04 in the same quarter a year ago.
The first quarter consolidated net investment for the company stood at $3.9 billion compared to $3.3 billion in the year-ago quarter, reflecting favorable market conditions.
The company’s CEO justified the performance by saying that its underwriting and expense discipline, coupled with improved business mix and reinsurance actions, are the reasons for General Insurance’s achievement. He expects that this performance will be sustained for the rest of the year.
Many analysts have observed that Life and Retirement continue to deliver an adjusted low-mid-ROCE and a two-digit adjusted ROCE for consolidated AIG within three years. Q1 adjusted ROCE came at 11.6% compared to 7.7% in the year-ago quarter, while core adjusted ROCE was 13.4% vs. 8.6% in the same previous quarter.
The company’s book value adjusted per ordinary share of $ 55.47 as of March 31, 2019 fell from $ 56.10 as of March 31, 2018.