Net income fell to $655 million, or 46 cents a share in the fourth quarter, from $1.98 billion or $1.34 a year earlier, the New York-based insurer said Thursday in a statement. Operating profit, which excludes some results tied to investing and debt redemptions, was 97 cents a share, missing the $1.06 average estimate of 22 analysts surveyed by Bloomberg.
Chief Executive Officer Peter Hancock has been revamping management and working to improve results at the property- casualty operation after taking over in September. AIG has been issuing new bonds at lower interest rates to repay higher-cost debt, and took an $824 million charge tied to those efforts in the fourth quarter.
“We’ll look back and say 2014 was a transitional year and 2015 will show some operational progress,” Josh Stirling, an analyst at Sanford C. Bernstein & Co. said by phone before results were announced.
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