Another record loss for AIG
American International Group (AIG) has reported its worst ever quarter in its 89 year history, with net losses of $7.81 billion, or $3.09 per common diluted share.
This is compared to net income of $4.13 billion during the first quarter of 2007.
It is the second consecutive quarter of record losses for AIG, and also the first time ever that the company has made a loss for two quarters in a row.
The group’s performance is being attributed to the weak US housing market and the sub-prime mortgage crisis, which has led to huge write-downs of assets.
Reassuring shareholders, AIG has announced a plan to raise $12.5 billion in capital this year, $7.5 billion of which is to be raised through a common stock offering and an equity linked offering.
Commenting on the results, the company said that despite the losses its core businesses are performing satisfactorily.
Category: Insurance News
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