AIG posts second straight loss; Hancock lifts dividend, buybacks

Fourth-quarter results were hurt by higher-than-expected claims costs on casualty coverage and deteriorating results from hedge funds.

By Sonali Basak | Updated on February 11, 2016

(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.

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