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AIG operating income drops sharply YOY in Q1'16

American InternationalGroup Inc. reported first-quarter 2016 operating income of $773 million,or 65 cents per share, compared with $1.70 billion, or $1.22 per share, in the firstquarter of 2015.

The S&P Capital IQ consensus normalized EPS estimate forthe quarter was $1.00.

AIG recorded a net loss attributable to the company of $183 million,or a loss of 16 cents per share, compared with net income of $2.47 billion, or $1.78per share, in the year-ago quarter.

"Although our first quarter results were impacted by marketvolatility on investments, the underlying operating results demonstrate progresson our strategic objectives," President and CEO Peter Hancock said in a statement.

Operating income included an after-tax loss of $564 million,or 48 cents per share, in investment income due to market volatility. Of that, lossesfrom hedge funds totaled $349 million, or 29 cents per share.

Restructuring and other costs of $188 million also cut into GAAPnet income, the company said.

The property casualty business recorded pretax operating incomeof $720 million, down 38% from the year-ago quarter's $1.17 billion. Net premiumswritten were $4.31 billion, compared with $5.05 billion a year earlier.

The mortgage guaranty segment, which comprises , recorded pretaxoperating income of $163 million, up from $145 million in the year-ago quarter.Net premiums written totaled $231 million, compared with $258 million year overyear.

The life insurance segment reported pretax operating income of$105 million, down from $171 million year over year. Net investment income fellto $468 million from $542 million.

For the personal insurance segment, pretax operating income was$222 million for the quarter, compared with a loss of $26 million in the year-agoperiod. Net premiums written totaled $2.81 billion, down slightly from $2.92 billionin the year-ago quarter.

Book value per common share for AIG was $78.28 as of March 31,2016, compared with $80.16 per share as of March 31, 2015.