NEW YORK American International Group capitalized on higher prices for commercial insurance, increased sales of annuities and retirement products, and a more favorable refinancing environment to post first-quarter earnings 13% higher than a year earlier.
However, a weak yen and damage from winter storms negatively affected its results. The New York insurer earned $1.53 billion, or 65 cents a share, compared with $1.35 billion, or 57 cents a share in the first quarter of 2000. Revenue rose 11.6%, to $12.2 billion.
On an operating basis AIG earned $1.57 billion, or 67 cents a share. Wall Street had earnings expectations of 66 cents a share, according to a consensus survey of analysts by Thomson Financial/First Call.
AIG did not discuss its pending offer to acquire American General Corp. Thursday. AIG made a counteroffer for American General earlier this month, following an all-stock merger agreement between American General and U.K. insurer Prudential PLC, and a subsequent decline in Prudentials stock price.