(Bloomberg) — American International Group Inc. more than doubled its dividend and increased its share buyback by $5 billion after asset sales helped build up cash, even as results slumped at some of the main insurance operations.
Net income slipped to $1.8 billion, or $1.32 a share, from $3.07 billion, or $2.10, a year earlier, New York-based AIG said in a statement Monday. Operating profit, which excludes some investing results, was $1.39 a share, beating the $1.21 average estimate of 21 analysts surveyed by Bloomberg.
AIG has been selling non-insurance assets and returning cash to shareholders as the company focuses on strengthening units that provide property-casualty and life coverage. Peter Hancock, who became chief executive officer last year, is also seeking to cut costs to help boost margins. The company trades for less than its net-asset value, even after a 15 percent rally this year.
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