American International Group Inc (NYSE:AIG) has announced that it now owns a minor stake in K2 intelligence and investigative consultancy. The two companies aim to work together towards helping customers manage their cyber risk. They plan to do this by developing products and services through AIG. K2 already hosts an impressive portfolio of being the advisor to governments, companies and different boards.
The choice of K2 seems to be an intelligent one since the company is considered a pioneer of the corporate investigations industry. The company is considered an expert in cyber investigations, defense, regulatory compliance and anti-money laundering. This expertise is of great use to AIG, whose clients face problems in cyber security, M&A transactions, construction projects and many others.
CEO of commercial insurance AIG, John Doyle, stated that his company is dedicated to protecting its customers against cyber attacks, which means that they need more than just insurance to transfer the risk. Partnering with companies like K2 sends out a message that AIG is ready to deal with all such threats.
AIG recently reported its 1Q2015 earnings, with its operating income as $1.69 billion. This amounted to $1.22 per share, which is 3 cents more than the Wall Street estimates. However, the year-over-year growth reported a decline of 3%. The decline has been attributed to lower interest rates, leading to lower profits. The revenues also reported a year-over-year decline to $14.59 billion, from $15.1 billion.
The CEO of the company, Peter Hancock, stated that the 1Q2015 showed significant progress and reflected our commitment towards proper management of our balance sheets. However, the recent acquisition is aimed at increasing business for the company and an improvement in 2Q2015 can be expected. The progress would still depend on the products that the two company’s roll out over the course of the next few weeks.
American International Group Inc (NYSE:AIG) closed at $57.74 after gaining 2.58% on May 1. The company has 1.37 billion shares being traded in the market, with a 52-week range of $48.56-$58.73.
