(Bloomberg) -- American International Group Inc. posted its fourth loss in six quarters, burned again by higher-than-expected claims costs as struggles to sustain profitability.
The net loss widened to $3.04 billion, or $2.96 a share, from a $1.84 billion, or $1.50, a year earlier, the New York-based insurer said Tuesday in a statement. The fourth quarter’s operating loss, which excludes some investment results, was $2.72 a share, missing the average estimate in a survey of 18 analysts for a profit of 42 cents.
|Selling units to free up cash
Hancock is seeking to stabilize results by being more selective about the risks that AIG takes through both insurance underwriting and investing. He has been selling units to free up cash for shareholder buybacks and to simplify the company while focusing on the increased use of analytics to gain an edge in specialized lines, such as guarding commercial clients against cyber breaches.
“We took decisive actions in 2016 to dramatically reduce uncertainty and deliver higher quality, more sustainable earnings in the future,” Hancock said in the statement. He reiterated the two-year goal from January 2016 to return $25 billion to shareholders, adding that the commitment is “subject to regulatory and rating agency considerations and future profitability improvements.”
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