MarketWatch writes article about AIG swings to loss on lower investment income:
By Leslie Scism
Published: Nov 2, 2015 4:49 p.m. ET
By
LeslieScism
American International Group Inc. swung to loss in the third quarter,
falling short of Wall Street expectations as the giant insurer faces
calls from shareholders Carl Icahn and John Paulson to break up.
AIG attributed much of the loss of $231 million to lower income from
certain investments in hedge funds and two Chinese insurance stocks,
along with volatile global markets. It posted a profit of $2.19 billion
in the same period a year earlier.
Operating income–a closely watched metric that excludes investment
gains or losses and some other items–dropped to $691 million, or 52
cents a share, as compared with $1.72 billion, or $1.19 a share, in the
year-earlier period. That was below expectations of $1.03 a share from
analysts surveyed by Thomson Reuters.
The announcement about a profit pullback comes as Messrs. Icahn and
Paulson urge the company to consider a three-way split to boost the
company’s stock and escape regulations imposed by federal policy
makers. Mr. Icahn in a letter to AIG Chief Executive Officer Peter
Hancock last week also asked the company to bring down its costs.
MarketWatch Article Source Here.