American International Group Inc (NYSE:AIG) released its second quarter earnings results after closing bell. The insurance provider posted earnings of $2.10 per share and adjusted earnings of $1.25 per share. Net income was $3.1 billion, compared to $2.73 billion in the same quarter a year ago. Revenue was $8.53 billion for the second quarter.
Analysts had been expecting adjusted earnings of $1.05 per share on $8.13 billion in revenue.
Breaking down American International Group’s earnings
At the end of June, American International Group’s shareholders’ equity was $108.2 billion. The company increased its book value per share by 15% to $75.71.
AIG’s Property Casualty division saw $1.4 billion in pretax operating income and a combined ratio of 98.9. The company’s Commercial Insurance Underwriting segment saw a decline in its combined ratio to 95.4, mainly due to net favorable loss reserve development in the previous year, and lower catastrophe losses. In the insurance provider’s Consumer Insurance Underwriting segment, the company’s combined ratio fell 2.1 points to 98.
In AIG Life and Retirement, pretax operating income was $1.2 billion in the second quarter. Net investment income for the segment was $2.6 billion, a 3% decline year over year. The segment generated $7.4 billion in premiums and deposits. Assets under management increased 13% to $332.8 billion.
The company’s Retail operating segment saw $684 million in pretax operating income. AIG’s Institutional segment posted $496 million in pretax operating income for the quarter. AIG’s Mortgage Guaranty segment saw $210 million in pretax operating income for the second quarter. Net premiums in the segment fell 9% to $249 million. In other operations, AIG reported pretax operating losses of $11 million, compared to last year’s losses of $125 million for the same quarter.
American International Group returns capital
American International Group also declared a common stock dividend of 12.5 cents per share. That dividend is payable on Sept. 25 to shareholders of record as of Sept. 11. The company’s board also authorized an additional $2 billion worth of share repurchases. AIG bought back about $1.1 billion or approximately 18.1 million shares during the second quarter.