Post-Earnings Review - American Intl. Group

LONDON, March 13, 2015 /PRNewswire/ --

Editor Note: For more information about this release, please scroll to bottom.

Investor-Edge.com has issued free post-earnings review on American International Group Inc. (NYSE: AIG). On February 12, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG to read our free earnings review on American International Group Inc. (AIG). During Q4 FY14, the company's after-tax operating income was $1.37 billion, or $0.97 per diluted share. President and CEO of AIG, Peter D. Hancock, stated that the Q4 FY14 results showed progress on expense control, ongoing investments in the businesses, and the company's commitment to balance sheet management. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG

Earnings Overview 

During Q4 FY14, AIG's after-tax operating income decreased by $295 million, or $0.16 per diluted share, from $1.67 billion, or $1.13 per diluted share, in Q4 FY13. Net income attributable to AIG also declined to $655 million, or $0.46 per diluted share, in Q4 FY14, from $1.98 billion, or $1.34 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected the company to report Q4 FY14 net income attributable to AIG of $2.34 billion, or $1.31 per diluted share. Moreover, AIG's Q4 FY14 net income included an after-tax loss on extinguishment of debt of $824 million, or $0.58 per diluted share, associated with liability management activities during the reported quarter. Free research on AIG can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG

In Q4 FY14, AIG's Property Casualty's net premiums written fell 3% to $4.69 billion from $4.85 billion in Q4 FY13. Furthermore, Personal Insurance's net premiums written also fell 3% to $2.87 billion in Q4 FY14 from $2.96 billion in Q4 FY13. However, Mortgage Guaranty's net premiums written rose 7% to $273 million in Q4 FY14 from $255 million in Q4 FY13.

Mr. Hancock said that AIG's diversified and balanced business mix allowed for stable total insurance profits. He also stated that the company's strong balance sheet and continued profitability contributed to positive capital management in Q4 FY14, in the form of common stock and debt repurchases. He informed that the company had acquired Ageas Protect late last year and agreed to acquire Laya Healthcare last month. He added that during FY14, the company had made substantial progress on the merger integration of Fuji Fire and Marine and AIU in Japan.

During the reported quarter, AIG repurchased 27.9 million shares of its common stock. This included 3.9 million shares received in October 2014 upon the settlement of an accelerated share repurchase agreement executed in Q3 FY14 and the initial delivery of approximately 9.2 million shares pursuant to an accelerated share repurchase agreement executed in December 2014 (which settled in January 2015 with the delivery to AIG of approximately 3.5 million additional shares). Sign up and read the free analyst's notes on AIG at:

http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG

In FY14, AIG's after-tax operating income stood at $6.63 billion, or $4.58 per diluted share, compared to $6.65 billion, or $4.49 per diluted share, in FY13. Net income attributable to AIG declined to $7.53 billion, or $5.20 per diluted share, in FY14, from $9.09 billion, or $6.13 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income attributable to AIG of $8.61 billion, or $6.01 per diluted share, in FY14.

As of December 31, 2014, the company's book value per common share was $77.69 as compared to $68.62 as of December 31, 2013. The company reported Return on equity (ROE) of 2.4% in Q4 FY14, compared to 7.9% in Q4 FY13. Furthermore, for full-year FY14, the company's ROE was 7.1%, compared to 9.2% in FY3.

On February 12, 2015, the company's Board of Directors authorized the repurchase of additional shares of AIG Common Stock with an aggregate purchase price of up to $2.5 billion, and also declared a quarterly dividend of $0.125 per share, which is payable on March 26, 2015, to stockholders on record at the close of business on March 12, 2015. Visit Investor-Edge and access the latest research on AIG at:

http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG

Stock Performance 

On the day following the earnings release, February 13, 2015, AIG's stock ended the session at $53.96, up 2.88%. Since then, the stock witnessed mostly a positive trend. On the last close, Thursday, March 12, 2015, it finished at $55.60, up 1.61%, after vacillating between $54.90 and $55.66. A total of 5.89 million shares were traded which was below their three months average volume of 9.20 million shares. Over the last one month and previous three months, the company's shares have advanced 6.01% and 2.87%, respectively. Also, the stock has gained 11.36% over the past one year. Shares of AIG closed above their 50-day and 200-day moving averages of $53.32 and $53.98, respectively. Furthermore, the stock traded at a PE ratio of 11.27 and has a Relative Strength Index (RSI) of 53.02.

Sneak Peek to Corporate Insider Trading 

In the last one month, AIG has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on AIG is available at:

http://get.Investor-Edge.com/pdf/?c=American%20Intl.&d=13-Mar-2015&s=AIG

About Investor-Edge.com 

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