AIG Reports Loss From Continuing Operations
American International Groupreported a loss from continuing operations, though the company's revenue increased from a year earlier and topped Street targets.
The insurer, the beneficiary of a U.S. government bailout during the height of the financial crisis, reported a first-quarter loss from continuing operations of $1.41 a share.
Revenue for the most recent quarter rose from a year ago, to $17.4 billion, against $16.81 billion a year earlier.
Analysts who follow AIG expected on average for the company to report sales of $14.97 billion, according to an estimate from Thomson Reuters.
Analysts expected the company to report a loss of 15 cents a share, but that number does not appear to be comparable to the loss of $1.41 a share that AIG reported in its financial results.
The report was heavy with figures. AIG posted a loss from continuing operations, a net income figure, a third figure for net income attributable to the company, a fourth figure for net income attributable to common shareholders and a comprehensive loss attributable to the company.
AIG, in a statement, focused on the net income figure attributable to AIG, which it said came in at $269 million, down from $1.8 billion last year.
The company also took a big charge for the termination of its credit facility from the Federal Reserve. That charge came to some $3.3 billion, and was related to the recapitalization deal that closed in January. That arrangement paid off the Fed and left the U.S. Treasury with a 92 percent stake in the company.
The Treasury is expected to start selling down that position later this month, though it is unclear at what price. AIG shares have lost more than 30 percent of their value since the recapitalization closed, and they are closing in on the government's $28.72-a-share break-even point.
CNBC reported on Thursday that the U.S. Treasury Department is at loggerheads with the bankers they have hired over where to price a secondary offeringof AIG shares.
Shares of AIG, which closed almost 3 percent lower at $30.79 on Thursday, lost more ground in extended trading. Get after-hour quotes for AIG here.