AIG's Income Takes a Hit from COVID-19
Insurance and financial giant American International Group (NYSE: AIG) was hit with major catastrophe losses in the first quarter, mainly as a result of the COVID-19 pandemic, which cut into its adjusted earnings.
The insurer set aside $419 million for catastrophe losses in the quarter with $272 million of that estimated to be for losses related to COVID-19.
Net income in the quarter was $1.7 billion, or $1.98 per diluted common share, up from $654 million, or $0.75 per diluted common share, in the prior year's quarter. That rise was attributable to $3.5 billion of pre-tax capital gains related to mark-to-market gains from variable annuity and interest rate hedges, compared to $446 million in net capital losses a year prior.
Source Fool.com
