AIG (NYSE:AIG) topped second-quarter consensus earnings estimates and announced an increase in its share repurchase program when it reported earnings before the open on Wednesday.
The finance and insurance company reported adjusted earnings of $1.75 per share, $0.16 better than the analyst estimate of $1.59.
The company said the year-on-year increase in AATI was due to higher Life and Retirement results. However, it was partially offset by higher catastrophe losses and lower net favorable PYD.
At the time of writing, AIG shares are up 1.46% at $61.30 per share. The stock is up more than 17% in the last 12 months.
AIG also announced it has increased its share repurchase authorization to $7.5 billion.
Reacting to the report, BofA analysts cut the firm's price target on AIG to $72 from $74, reiterating a Buy rating on the stock. They told investors in a note that the company's underwriting discipline avoided catastrophe losses in Q2.
"AIG's 2Q23 result exceeded our forecast of $1.51 as well as consensus of $1.60, coming in above the high end of the range," said analysts. "Compared with our forecast, AIG's P&C operations saw $251mn of catastrophe-related loss activity, much below our forecast of $535mn amidst very active 2Q23 weather conditions, a $0.30/sh variance with our forecast."