AIG came out with exceptional earnings after the close today. The company earned $3.2 billion in the quarter and had operating income of $1.65 a share versus expectations of $1.13 per share. The company increased book value to $57.68 reflecting 69% upside from the current price. Recent sales of the Maiden Lane portfolios and AIA have dramatically bolstered liquidity providing the framework for a stock buyback of epic proportions. All of AIG’s businesses were profitable highlighting the more disciplined underwriting strategy that the company has implemented.
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