AIG’s Profit Increases 37% on Higher Prices
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American International Group Inc.’s net income rose in the second quarter as the world’s biggest insurer increased prices on auto and business policies and sold more life insurance.
Excluding investment gains and losses and accounting changes, American International earned $2.21 billion, or 84 cents a share, up from $2.02 billion, or 76 cents, a year ago. The per-share figure was a penny less than the average forecast of analysts.
Chief Executive Maurice “Hank” Greenberg said earnings were hurt by low interest rates, which pared investment income, and by losses on WorldCom Inc. and the slump in equity markets, which reduced variable annuity sales and fees for managing assets.
Shares fell 27 cents, or 0.5%, to $53.11 on the NYSE.
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