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Daily Insurance Industry News
Sunday 21st of January 2018
February 25, 2009

Reports of $60bn fourth quarter loss at AIG

by Gill Montia

Story link: Reports of $60bn fourth quarter loss at AIG

American International Group (AIG), the troubled US insurer, could post a loss of up to $60 billion for the fourth quarter of 2008, according to analysts’ estimates.

Such a result would follow a loss of $24.5 billion in the third quarter of last year.

The group secured an $85 billion bail out from the US Treasury in September of last year, only hours after the collapse of investment bank Lehman Brothers.

It then returned to negotiate a $150 billion package in November and surrendered to majority state ownership.

According to reports, AIG is in need of further support because of writedowns on assets and is currently in talks with the US authorities.

The group embarked on a massive programme of disposals after coming close to collapse in September and needs further time to sell its businesses worldwide.

The restructure should allow AIG to focus on its core property and casualty operations.

Results for the fourth quarter are due to be announced on Monday 2nd March.

 

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