AIG earnings: 97 cents per share vs. expected EPS of $1.05

AIG reports EPS miss

AIG on Thursday posted quarterly profit that fell short of Wall Street expectations as adjustments to its workers' compensation business weighed on revenue.

The insurer reported adjusted fourth-quarter earnings per share of 97 cents, down from $1.13 in the year-earlier period. AIG shares were about a half a percent lower in extended trading.

"Our fourth-quarter results showed progress on expense control, ongoing investments in our businesses and our commitment to balance sheet management," CEO Peter Hancock said in a company release.

A pedestrian walks past the American International Group offices in New York.
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AIG also announced that it would buy back about $2.5 billion in shares of common stock on top of the roughly $4.9 billion in stock it repurchased in 2014.

Analysts had expected AIG to post earnings of $1.05 a share on $8.64 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company reported an operating profit of $1.37 billion, well short of the $1.67 billion reported in the year-earlier period.

AIG, starting on Thursday, is reporting its businesses in terms of commercial insurance and consumer insurance. Hancock said in a release that it "reinforces our focus on the ultimate client group being served, not the product being delivered."

After-tax operating income in the commercial segment increased to $1.22 billion from $973 million a year ago. The same metric in the consumer segment, though, dropped to $923 million from $1.16 billion in the year-earlier period as AIG saw income from both retirement and life insurance drop off.

The company's earnings conference call will take place at 8 a.m. ET on Friday.

AIG shares have climbed more than 6 percent in the last year, compared to a roughly 14 percent jump for the .

The insurer announced last month that it would buy Laya Healthcare, the second-largest health insurance provider in Ireland. It also last month completed its acquisition of Ageas Protect, a British insurer.

AIG executives had publicly supported congressional legislation for a revamped federal terrorism insurance program, which gained approval last month.

Thursday marks the company's second quarterly earnings report since Peter Hancock took over as president and CEO in September.