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AIG profit rises 6 percent as costs fall; shares climb

AIG ups stock buyback by $3 billion

American International Group, the largest commercial insurer in the United States and Canada, reported a 6.3 percent rise in quarterly profit as costs fell 16.3 percent.

The company's net income rose to $1.91 billion, or $1.68 per share, for the second quarter ended June 30, from $1.80 billion, or $1.32 per share, a year earlier.

On an operating basis, the company earned 98 cents per share.

Analysts on average had expected the company to earn 93 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.

AIG, whose total costs fell to $2.59 billion from $3.09 billion, said its board has authorized a share buyback program of up to $3 billion.

Shares rose nearly 3 percent in after-hours trading.

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