AIG stock price target raised to $64 from $59 at UBS

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AIG swings to profit but misses expectations, stock sinks

Shares of American International Group Inc. sank 3.7% in premarket trading Friday, after the insurer swung to a profit in the third quarter, but missed expectations, while premiums declined from last year. The company reported net income of $648 million, or 72 cents a share, after a loss of $1.26 billion, or $1.41 a share, in the year-ago period, as the company realized a $929 million capital gain this year after a $511 million capital loss last year, and a $1.1 billion reduction in catastrophe losses. Excluding non recurring items, adjusted EPS rose to 56 cents from 34 cents. The FactSet consensus for net EPS was $1.02 and for adjusted EPS was $1.00. Gross premiums written fell 1% to $8.58 billion and net premiums written declined 3% to $6.65 billion. In North America, net premiums written rose 8% to $3.40 billion. “Results are in line with our expectations, particularly in General Insurance, which demonstrated a significant improvement over the prior-year quarter driven by our focus on underwriting excellence, expense discipline and enhanced reinsurance strategy,” said Chief Executive Brian Duperreault. “Life and Retirement continued to produce solid results despite ongoing headwinds from the sustained low interest rate environment.” The stock has rallied 34.4% year to date, while the S&P 500 has gained 21.2%.

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