NEW YORK — Shares of American International Group Inc. slipped in extended trading Monday after the insurer reported adjusted earnings that missed estimates and said it would restructure its business.
AIG reported a third-quarter loss of $231 million, after reporting a profit in the same period a year earlier.
The New York-based company said it had a loss of 18 cents per share. Earnings, adjusted for non-recurring costs and to account for discontinued operations, came to 52 cents per share.
The results missed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.03 per share.
AIG blamed lower income on hedge-fund investments and assets marked to fair value through earnings, lower realized investment gains, and lower income from settlements of non-operating litigation.
A year earlier, the company earned $2.19 billion, or $1.52 per share.
Results in the latest quarter included $274 million in pretax restructuring and other costs. AIG said it will book up to $500 million in such costs through 2017 in order to make its business more efficient.
The announcement comes just a week after activist investor Carl Icahn disclosed he has a "large stake" in AIG, which he called "too big to succeed." In a letter sent to AIG and posted on his website, Icahn said that AIG should separate the company's life and mortgage insurance businesses and create three separate, publicly traded companies. Icahn said splitting up AIG would boost shareholder value and also make it more competitive.
American International Group shares have risen 14 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 2 percent. The stock closed regular trading at $63.74, a climb of 19 percent in the last 12 months. In extended shares changed hands at $61.80, down $1.94, or 3 percent.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AIG at http://www.zacks.com/ap/AIG
Keywords: American International Group, Earnings Report