AIG Posts Sharp Jump in Earnings, Expands Stock Buyback

Thursday, 1 Mar 2007 | 5:19 PM ET

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.

AIG Earnings
AIG announces earnings and revenue ahead of what Wall Street expected, with Bob O'Brien, WSJ stock editor

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.

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