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AIG Shares Rebound Despite Quarterly Earnings Miss

AIG shares rebound despite a larger-than-expected earnings miss, as its CEO seeks to reassure investors.

AIG (AIG) CEO Peter Hancock wants to reassure investors that despite lower-than-expected quarterly earnings the bailed-out insurer is better capitalized with lower risk than it has ever been in its history. Shares of AIG rebounded Thursday after plummeting 9% the previous day when the firm reported a larger-than-expected net loss of $2.96 a share as of December, far wider than the 61-cent loss estimated by analysts. The loss was mostly due to a $5.6 billion increase in reserves for future insurance claims, the company said. However, despite the loss AIG says it's still on track with its strategic plan to return billions of capital to investors, reduce expenses, and divest assets.