American International Group, Inc. (AIG) has reported that its net income for the first quarter 2006 was $3.20 billion or $1.22 per diluted share, compared to $3.80 billion or $1.45 per diluted share in the first quarter 2005. At March 31, 2006, consolidated assets were $879.80 billion and shareholders’ equity was $88.39 billion.
AIG’s first quarter 2006 adjusted net income was $3.38 billion or $1.29 per share, an increase of 4.6 percent from first quarter 2005.
According to AIG President and CEO Martin J. Sullivan said, the quarter was adversely affected by one-time after tax charges of $115 million relating to expenses from the SICO compensation plans and the Starr tender offer. Results were also negatively affected by an additional allowance for losses in credit card operations in Taiwan of $88 million before tax or $57 million after tax, and an adjustment relating to deferred advertising costs in General Insurance of $59 million before tax or $38 million after tax.
“A number of specific accomplishments in the first quarter deserve attention and reflect AIG’s strengths and ability to extend our global franchise,” Sullivan commented. He said the Domestic Brokerage Group has continued to expand its relationships with a larger number and broader range of brokers, while also growing its presence in the small business segment.
A conference call for the investment community was scheduled to be held Thursday, May 11, 2006 at 8:30 a.m. EDT. The call will be broadcast live on the Internet at www.aigwebcast.com. A replay will be archived at the same URL through Thursday, May 25, 2006.