AIG posts worse-than-expected earnings, cites losses from disasters

American International Group shares sank more than 9 percent Thursday after the insurance giant posted a disappointing 30 percent decline in adjusted income.

AIG is trying to turn around its main business, selling property and casualty insurance to corporations, but California mudslides, major winter storms and other natural disasters cost the insurer $376 million.

Taking out nonrecurring items, overall adjusted profit was $963 million, or $1.04 a share, down from $1.36 a share in last year’s first quarter.

Analysts were forecasting $1.26 a share.

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