American International Group Inc (NYSE:AIG) stock was down on Wednesday following a poor earnings report for the fourth quarter of 2016.
American International Group Inc reported losses per share of $2.72 for the fourth quarter of 2016. This is down from the company’s losses per share of $1.07 for the fourth quarter of 2015. It also failed to meet Wall Street’s earnings per share estimate of $1.18 cents for the fourth quarter of the year.
American International Group Inc notes that it suffered from a $5.6 billion impact during the fourth quarter of 2016. It says this hurt its earnings per share by $3.56 for the quarter. The insurance company notes that this impact was due to its prior year adverse reserve development.
“We took decisive actions in 2016 to dramatically reduce uncertainty and deliver higher quality, more sustainable earnings in the future,” Peter D. Hancock, American International Group Inc President and CEO, said in a statement. “Going forward, we expect to see the results from our improved underwriting platform, reduced expense base, and the strong improvement in our business mix.”
During the fourth quarter of the year, American International Group Inc reported a net loss of $3.04 billion. This is worse than the net loss of $1.84 billion that it reported in the same period of the year prior.
American International Group Inc’s Board of Directors have also approved additional share repurchases. It has added $3.5 billion to its share purchase authorization. This brings the company’s total share repurchase amount up to $4.7 billion.
AIG stock was down 8% as of Wednesday afternoon.