An industry analyst is lowering his earnings estimates for American International Group because of recent accounting adjustments and potential legal penalties for the company.[@@]
But the analyst, Andrew S. Kligerman of UBS Investment Research, New York, says, despite its legal and accounting problems, he still sees AIG “as a strong, leading global insurer.”
The company’s restated accounting figures will reduce its book value by a net $300 million, he says. That could be further reduced by civil and regulatory penalties as well as further restatements, Kligerman says.
He is predicting operating earnings this year for AIG of $12.6 billion on revenue of $108.8 billion, up from an estimated $11.5 billion in earnings on $98.3 billion in revenue last year.