AIG reports Q1 losses
American International Group, Inc. (AIG) has reported its financial results for the first quarter of 2009.
The troubled insurance giant posted a net loss of $4.35bn, or $1.98 per diluted share.
Although a substantial loss, it is a significant improvement on the firm’s performance in Q1 2008, when it incurred a net loss of $7.81bn, equivalent to $3.09 per diluted share.
AIG has ascribed the loss primarily to a change in accounting charges, restructuring costs and charges related to market disruption.
Pre-tax restructuring costs were $1.9bn ($1.2bn post-tax), most of which was due to winding down AIG Financial Products Corp. and AIG Trading Group, Inc., as well as subsidiaries.
Market disruption costs stood at $2.5bn pre-tax, and AIG recorded tax expenses totalling $1.1bn.
Edward M. Liddy, chairman and CEO of the firm, stated that the results reflected efforts made to repay US taxpayers whilst maximising AIG’s core businesses’ value.
The firm has made a series of significant asset sales to this end, including AIG Life of Canada and Hartford Steam Boiler to BMO Financial Group and Munich Re Group respectively, as well as AIG Private Bank Ltd. to Abu Dhabi-based global investment firm Aabar Investments PJSC.
Category: Financials, Insurance News
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