NEW YORK CITY (dpa-AFX) - American International Group Inc., (AIG) on Tuesday reported a loss for the fourth quarter that widened from a year ago, hurt largely by a multi-billion charge. The company also raised its share buyback program by up to $3.5 billion.
New York-based AIG reported a fourth-quarter loss of $3.04 billion or $2.96 per share, compared to $1.84 billion or $1.50 per share a year ago.
Excluding items, operating loss for the quarter was $2.79 billion or $2.72 per share compared to $1.32 billion or $1.07 per share in the prior year. On average, 10 analysts polled by Thomson Reuters estimated earnings of $1.18 per share for the quarter. Analysts' estimates typically exclude special items.
The fourth quarter results included a $5.6 billion or $3.56 per share impact from prior year adverse reserve development.
'The comprehensive adverse reserve development cover significantly reduces the risk of further reserve additions in some of the most volatile lines, and we responded definitively to emerging severity trends that we believe are materially impacting the overall U.S. Casualty market' said CEO Peter Hancock.
Book value per share dropped 9.8 percent to $76.66 during the quarter. The company authorized the repurchase of additional shares of up to $3.5 billion. AIG also declared a quarterly dividend of $0.32 per share, payable March 29, 2017, to stockholders of record on March 15, 2017.
AIG closed Tuesday's trading at $66.89, up $0.75 or 1.13%, on the NYSE. The stock, however, slipped $3.00 or 4.48%, in the after-hours trade.
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