<p>AIG (NYSE: AIG) earnings for the first quarter of 2020 have AIG stocks hitting after the markets closed on Monday. This is because the adjusted earnings per share (EPS) of 11 cents is missing from the Wall Street estimate of 72 cents.
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Let’s take a look at what happened during the latest AIG results report.
Adjusted earnings per share decreased by 93% from USD 1.58 during the same period last year. Net income reported by the company was $ 1.74 billion, an increase from $ 654 million in the first quarter of 2019. Adjusted pre-tax insurance income for the quarter was $ 501 million. This is a large decrease compared to the company’s revenue of $ 1.27 billion in the same category during the first quarter of 2019. The company also saw $ 419 million in disaster losses before tax (CAT) for its general insurance revenues during the quarter. AIG notes that $ 272 million of these CATs can be attributed to the new coronavirus.
Brian Duperreault, CEO of AIG, said this in the company’s earnings report:
“AIG had a strong financial position before the crisis began and is still in a strong financial position today. While we believe that COVID-19 will be the single largest CAT loss the industry has ever seen, the significant work our team has done since the end of 2017 has served us well as we navigate through this evolving situation. ”
AIG also notes that it is withdrawing its guidance for 2020. It makes sense because the coronavirus pandemic is disrupting the economy.
The AIG share increased by less than 1% on Monday afternoon.
Article printed from InvestorPlace Media, https://investorplace.com/2020/05/aig-earnings-q1-drop-stock/.
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