American International Group (AIG) Inc. will report its first quarter earnings after markets close Monday. Analysts polled by Reuters expect the insurance giant to report earnings of $1 per share on revenue of $13.57 billion in the three-month period ending March 31, down from earnings of $1.78 per share on revenue of $14.6 billion in the year-earlier period.
The company’s reported pretax profit, which stood at $3.77 billion in the first quarter of 2015, is forecast to fall over 49 percent to $1.9 billion in the first quarter of 2016.
America’s largest commercial insurer, has, in recent months, come under pressure from activist investors John Paulson and Carl Icahn to boost revenue and profits. In the previous quarter, AIG reported larger-than-expected quarterly net loss of $1.5 per share, which it attributed to realized capital losses and restructuring costs.
“During the fourth quarter, we streamlined our management structure to accelerate decision-making and strengthen accountability. Our recent strategy update detailed the next chapter of our transformation into a leaner, more profitable and focused insurer,” AIG President and CEO Peter Hancock said in a statement in February. “I’m confident that our actions in 2015 positioned us to achieve the goals we’ve set for the next two years.”
In January, AIG said that it would cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years. And in its latest effort to divest assets and free up capital for share buybacks, AIG recently announced the sale of a large chunk of its stake in Chinese insurer PICC Property & Casualty for $1.25 billion.
AIG’s New York-listed shares closed flat Friday. So far this year, the company’s stock has dropped 10.7 percent, underperforming the broader index.