American International Group Inc. on Thursday posted a third-quarter profit of nearly $2 billion thanks to strength in its core insurance operations and healthy investment returns.
In the same period last year, it lost $4 billion.
“We are seeing continued momentum, and we’re building for the future by creating a more streamlined, efficient and nimble company,” AIG President and CEO Robert Benmosche said in a statement.
AIG became a household name after it received $182.5 billion in federal aid following the 2008 financial meltdown. It was the biggest bailout of the crisis.
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The company has since repaid its debt with the Federal Reserve, and stock sales by the Treasury Department mean that as of September the government is no longer AIG’s majority owner.
New York-based AIG posted net income of $1.86 billion, or $1.13 per share, in the July-September quarter. That compares with a net loss of $4 billion, or $2.10 per share, in the th ird quarter of 2011.
Its operating income amounted to $1 a share. Wall Street had been expecting 87 cents a share, according to a survey by FactSet.
Operating income in AIG’s property casualty insurance business jumped nearly 60 percent in the third quarter, to $786 million from $492 million a year earlier. The increase resulted from lower losses from disasters, a boost in investment income on securities and improved underwriting.