American International Group, Inc. (NYSE: AIG) today reported net income attributable to AIG of $2.3 billion and after-tax operating income of $1.9 billion for the quarter ended June 30, 2012, compared to net income of $1.8 billion and after-tax operating income of $1.2 billion for the second quarter of 2011. Diluted earnings per share and after-tax operating income per share were $1.33 and $1.06, respectively, for the second quarter of 2012, compared with diluted earnings per share and after-tax operating income per share of $1.00 and $0.68, respectively, for the second quarter of 2011.
“AIG’s insurance operations and aircraft leasing business posted solid profits this quarter,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “The performance of our businesses and our stock price enabled the U.S. government to continue to profitably reduce its outstanding assistance to AIG, which includes the U.S. Department of the Treasury’s $5.7 billion AIG equity offering in May 2012. The Federal Reserve Bank of New York’s Maiden Lane III loan was also paid in full during the quarter.
“We are proud of what we have accomplished and believe we are close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit. Every day, the people of AIG continue to make significant progress in restoring our reputation in the communities we serve; respect for the AIG name has endured among our partners and customers. This fall, our property casualty insurance operations will return to the AIG name with Chartis renamed AIG. In addition, the SunAmerica Financial Group segment will be renamed AIG Life and Retirement.
“At Chartis, second quarter results demonstrated the continued progress in strategic initiatives to improve the mix of business, loss ratio, and risk selection, all of which ultimately increases the intrinsic value of our global franchise. SunAmerica Financial Group continues to benefit from disciplined pricing of innovative products that are attractive to both consumers and our distribution partners. United Guaranty made a profit and is progressively becoming a choice mortgage insurer for lenders to highly qualified borrowers because of our risk-based pricing strategy. ILFC remains highly competitive.”
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