AIG (NYSE:AIG) earnings for first quarter of 2020 have AIG stock taking a beating after markets closed on Monday. That’s due to its adjusted earnings per share (EPS) of 11 cents missing Wall Street’s estimate of 72 cents.
Let’s take a look at what happened during the most recent AIG earnings report.
- Adjusted per-share earnings were down 93% from $1.58 during the same time last year.
- Net income reported by the company came in at $1.74 billion, which is up from $654 million in the first quarter of 2019.
- Adjusted pre-tax General Insurance income for the quarter was $501 million.
- That’s a major drop compared to the company’s income of $1.27 billion in the same category in Q1 2019.
- The company also saw $419 million in pre-tax catastrophe losses (CATs) to its General Insurance income during the quarter.
- AIG notes that $272 million of these CATs is attributable to the novel coronavirus.
Brian Duperreault, CEO of AIG, said this in the company’s earnings report:
“AIG was in a strong financial position before this crisis began and remains in a strong financial position today. While we believe COVID-19 will be the single largest CAT loss the industry has ever seen, the significant body of work our team has undertaken since late 2017 has served us well as we navigate through this evolving situation.”
AIG also notes that it is withdrawing its guidance for 2020. That makes sense as the coronavirus pandemic is disrupting the economy.
AIG stock was up less than 1% after-hours Monday.