(Bloomberg) -- American International Group Inc. posted its second-straight quarterly loss, adding to pressure on Chief Executive Officer Peter Hancock, who lifted the dividend and announced a $5 billion share buyback as he fights demands from activist investor Carl Icahn for a management shakeup.
The net loss was $1.84 billion, or $1.50 a share, in the three months ended Dec. 31 and compares with profit of $655 million, or 46 cents, a year earlier, the New York-based company said Thursday in a statement. The operating loss, which excludes some investment results, was $1.10 a share, missing by 19 cents the average estimate of 16 analysts surveyed by Bloomberg.
Hancock is seeking to reshape the company’s business mix, curtail investment risks and improve underwriting margins to reverse a stock slide and protect his job. Fourth-quarter results were hurt by higher-than-expected claims costs on casualty coverage and deteriorating results from hedge funds. The CEO unveiled a plan last month to return $25 billion in capital to shareholders over the next two years, funded partly with proceeds from asset sales.
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