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Daily Insurance Industry News
Tuesday 19th of June 2018
March 2, 2009

AIG posts $61.7 billion quarterly loss

by Gill Montia

Story link: AIG posts $61.7 billion quarterly loss

Stricken insurer American International Group (AIG) has reported the largest quarterly loss in US corporate history, at $61.7 billion.

The group posted a net loss of $99.3 billion for the whole of 2008, compared with a net profit of $6.2 billion in 2007.

AIG has also secured a new bail-out package worth $30 billion, from the US Government.

The support follows an original $85 billion rescue by the US Treasury in September and a $150 billion package negotiated in November, which left the company majority state-owned.

The latest package involves the Federal Reserve taking stakes in its American Life Insurance and American International Assurance businesses.

According to a report in Insurance Times, the group is also separating out AIG UK, a general insurance business, by creating a new holding company.

AIG will continue with its restructuring and disposal programme and may need to return for further government help in the future.

When the troubled US insurer was rescued from the brink of collapse in mid-September, analysts warned that failure of the group could cause serious damage to global financial markets and even world economies.

 

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