Feb. 13 (Bloomberg) -- American International Group Inc., the insurer that repaid a U.S. bailout in 2012, posted fourth- quarter profit that beat analysts’ estimates as the company lifted its dividend and authorized $1 billion of share buybacks.

Net income was $1.98 billion, or $1.34 a share, compared with a loss of $3.96 billion a year earlier that was fueled by costs tied to superstorm Sandy and the planned sale of a plane- leasing unit, New York-based AIG said today in a statement. Operating profit, which excludes some investing results, was $1.15 a share, exceeding the 97-cent average estimate of 23 analysts surveyed by Bloomberg.

Chief Executive Officer Robert Benmosche, 69, is seeking to improve underwriting results at the property-casualty operation that is the core of the company after he sold non-U.S. life units to help repay the rescue. He told staff today that he was cutting 3 percent of the company’s workforce. Investments benefited in the fourth quarter from a stock-market rally and higher bond yields than a year earlier.