AIG revenue misses expectations, shares drop


American International Group on Monday delivered quarterly revenue that missed analysts' expectations as the number of net premiums earned from its property casualty unit fell during the quarter.

After the earnings announcement, the company's shares fell more than 2 percent in after-hours trading. What is AIG stock doing now? (Click here to get the latest quotes.)

The insurer posted first-quarter earnings excluding items of $1.21 per share, compared to $1.34 a share in the year-earlier period.

Adam Jeffery | CNBC

Revenue decreased to $8.23 billion from $8.56 billion a year ago.

Analysts had expected American International Group to report adjusted earnings of $1.07 a share on $9.36 billion in revenue, according to a consensus estimate from Thomson Reuters.

AIG CEO Robert Benmosche told CNBC's "Closing Bell" foreign exchange plays a part in the firm's revenue slip.

He urged investors to "keep in mind our second largest market outside the United States is in fact Japan and so we have a tremendous amount of premiums and fees coming out of Japan," he said. "With the pressure on the yen and looking at the exchange for the dollar, our premiums are actually growing on the property casualty side, but you don't see it because of the effects of the dollar."

Last month, the insurer launched a new type of insurance policy designed to cover physical harm and personal damages resulting from hacking incidents.

The company, which was nearly wiped out by its derivative bets during the financial crisis, resumed paying dividends last year after it repaid the $180 billion taxpayer bailout it received in 2008.

Former AIG CEO Maurice "Hank" Greenberg is currently battling fraud charges, brought by New York's attorney general, seeking "ill-gotten gains" from his compensation, Reuters reported.

Greenberg led AIG for 38 years before he was pushed out by the firm's board in 2005. The next year, AIG paid $1.64 billion to settle federal and state probes into its business practices.

As of Friday's close, AIG shares had gained about 17 percent over the past 12 months.