AIG did not offer guidance for the fourth quarter or the full year, but the consensus estimates call for full-year EPS of $4.64 on revenues of $33.98 billion. For the fourth quarter estimates call for EPS of $1.10 on revenues of $8.61 billion.
The company announced an increase of $1.5 billion in its share repurchase program and note that as of early October AIG had repurchased $1.5 billion in its common stock and completed over $4 billion in liability management, not including direct investment book
The company’s CEO said:
The solid third quarter results were driven by consistent performance across our businesses. While no one quarter is a trend, our risk-adjusted return focus could be seen in various metrics including improved accident year loss ratios, modest net spread compression, and continued capital management.
During the quarter also reduced its debt investment book by about $2 billion by redeeming $790 million in 4.875% notes due 2016 and $1.25 billion in 3.8% notes due in 2017. AIG cut its debt another another $2 billion in October as well.
The company’s shares are trading up about 0.7% after hours trading, at $54.20 in a 52-week range of $46.80 to $56.56. The consensus target price for the shares was around $60.75 before today’s report.