American International Group Inc., the world's largest insurance company by market value, said Wednesday that first-quarter earnings fell as expenses increased.
Net income fell nearly 16 percent to $3.2 billion, or $1.22 a share, from $3.8 billion, or $1.45 a share, a year earlier.
In the latest quarter, AIG reported adjusted net earnings of $3.38 billion or $1.29 a share, a 4.6 percent gain over the $3.23 billion or a $1.23 share in the year-earlier quarter. Analysts polled by Reuters, who use adjusted net as a yardstick, had been expecting the company to earn $1.36 a share.
New York-based AIG is a multi-line carrier that provides life insurance, property casualty, asset management and services such as aircraft leasing.
AIG's stock rose just over 21 percent in the last year, paralleling the performance of the Standard & Poor's insurance index. It trades at a price-to-earnings ratio of 16.4, slightly higher than other stocks in its sector, which trade at an average of 15.4 times earnings.