American International Group
, one of the world's largest insurance companies, exceeded Wall Street's quarterly earnings expectations by a penny Thursday on an 11% revenue increase.
For the first quarter ended March 31, net income rose to $1.36 billion, or 87 cents a diluted share, from $1.18 billion, or 75 cents a share a year earlier. The consensus estimate of analysts polled
by First Call/Thomson Financial
was 86 cents.
Including net realized capital losses of $18 million in 2000 and net realized capital gains of $17.7 million in 1999, the New York-based insurer posted net income of $1.35 billion, or 86 cents a diluted share, from $1.20 billion, or 77 cents a share a year earlier.
Revenue rose to $10.89 billion from $9.82 billion.
Operating income of the company's general insurance operations dropped 5%, to $886.8 million from $890.8 million a year ago. Life insurance operating income rose 21% year-over-year to $783.4 million from $650.2 million. The financial services division recorded a 12% increase in operating income, to $280.8 million from $250.6 million year ago, while the asset management division posted a 79% increased in operating income, to $103.8 million from $57.99 million.
AIG is a leader in property/casualty and specialty insurance in the United States but more than half its sales come from abroad.
Shares of AIG fell 3 1/4, or 3%, to 110 3/4 in Thursday morning trading. (AIG finished up 3 7/16, or 3%, at 110 9/16.)