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$1.98 Billion Profit, AIG Reports
American International Group Inc. or AIG is the multinational insurance corporation. The company is a provider of property casualty insurance, life insurance and retirement services, and mortgage insurance. New York City based corporate, AIG, has repaid the $180 billion bailout it received, according to Bloomberg News. AIG Chief Executive Officer Robert Benmosche, told staff today that he was cutting 3 percent of the company’s workforce. That means AIG expects to eliminate about 1,500 jobs. AIG shares have advanced 28 percent in the past 12 months. Sales to commercial clients have increased by 9.8 percent to $4.84 billion.
Chief Executive Robert Benmosche said on CNBC, “We have seen that the public negative sentiment is down dramatically.” And Bloomberg reported that an analyst at BMO Capital Markets, Charles Sebaski, was quoted in an interview saying, “The investment environment is improving gradually for them.”
Of the 23 analysts surveyed by Bloomberg, operating profit, which excludes some investing results, was $1.15 a share, exceeding the 97-cent average estimate. According to the 2013 Forbes Global 2000 list, AIG was the 62nd-largest public company in the world and it had a market capitalization of $57.53 billion as of April 2013.
On January 1, 2013 American International Group Inc. began an advertising campaign called, “Thank You America,” in which several company employees, including AIG President and CEO Robert Benmosche, talked directly to the camera and offered their thanks for the government’s assistance. In January 2013, AIG’s board discussed joining a lawsuit against the U.S. government because the bailout they received was unfair to their investors. The idea was rejected. AIG was criticized. The AIG board announced on January 9, 2013, that the company would not join the lawsuit, in January 2013, Bob Benmosche told reported to CNBC’s Maria Bartiromo that it would not be “socially acceptable” for AIG to sue the government, continuing that while people may be angry, “a deal’s a deal.”
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Image Credit: www.money.cnn.com$1.98 Billion Profit, AIG Reports by Jaan