American International Group Inc. made an official statement yesterday, posting a 13% jump in second-quarter profit on a gain tied to the divestiture of an aircraft-leasing division.
According to the statement of American International Group Inc., its net income increased from 2.73 billion dollars, or 1.84 dollars per share over the same period last year, to 3.07 billion dollars, or 2.10 dollars per share. The company also said that its operating profit excluding some investing results was 1.25 dollars per share, surpassing the median analysts estimate of 1.06 dollars a share.
The company also unveiled that it reached a 960-million-dollar settlement over the claims that it intentionally misled investors about its financial stability in the period between 2006 and 2008. This agreement is considered one of the largest reached by the company since the financial crisis.
American International Group Inc. was accused by its investors that it misled them, and as a result the companys shareholders “suffered tens of billions of dollars of losses, at the least, based on false and materially misleading statements that AIG, certain of its executives, directors, underwriters and outside auditor made concerning the company’s financial results, business operations and condition”.
The current Chief Executive Officer of the company – Mr. Robert Benmosche, who is soon departing from AIG, has managed to repay the 2008 U.S. government bailout in 2012. In addition, he succeeded in narrowing the companys operations in order to make it more efficient and eliminating jobs in order to make the property-casualty divisions results better. Mr. Benmosche is to be succeeded by Mr. Peter Hancock, who currently oversees the property-casualty unit and is to take over the position of Chief Executive Officer of AIG on September 1st.
American International Group Inc. was 1.17% up to close at $52.66 per share yesterday, giving the company a market valuation of $76.18 billion. The shares of the company have returned investors 8.96% over the past twelve months. According to the information published on CNN Money, the 20 analysts offering 12-month price forecasts for American International Group Inc. have a median target of $60.00, with a high estimate of $64.00 and a low estimate of $53.00. The median estimate represents a +13.94% increase from the last price of $52.66.
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