AIG Posts Sharp Jump in Earnings, Expands Stock Buyback

American International Group , the world's largest insurer by market value, said on Thursday that fourth-quarter earnings rose sharply from a year ago, when results were hurt by a legal settlement, additions to its reserves, and hurricane losses.

Net income was $3.44 billion, or a $1.31 share, compared with $444 million, or 17 cents a share, a year ago.

Adjusted net earnings, excluding capital gains and losses and hedging activities, were $3.85 billion, or $1.47 a share. In the year-ago quarter, AIG reported adjusted net profit $376 million, or 14 cents a share from operations.

AIG also expanded its stock buyback plan by $8 billion. AIG says it intends to buy $5 billion worth of common stock during 2007.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • This video is 90 seconds of cyber attacks happening around the globe, courtesy of Norse Norse is a technology company that bills itself as the "global leader in live attack intelligence." The company offers continuously "updated and unique Internet and darknet intel that helps organizations detect and block attacks that other systems miss."

  • Is this breakout story on your radar? Mad Money host Jim Cramer is about to put it there.

  • Paul Hickey, Bespoke Investment co-founder, discusses the huge divergence between the S&P 500 and the energy sector.