AIG Q3 results show “signs of stabilisation”
American International Group (AIG) reported a net profit of $455 million for the third quarter of 2009, compared to a loss of $24.4 billion in the same period of 2008.
The insurance giant needed a massive $85 billion bail out in the days that followed the collapse of Lehman Brothers last September, with the scale of taxpayer support eventually rising to $120 billion.
At the close of last year, the group sold $39.3 billion of its residential mortgage-backed securities to Maiden Lane II, a trust backed by the Federal Reserve.
The move has contributed to a much improved $1.8 billion in write downs for the three months to the end of September, compared to $15.6 billion a year earlier.
The company continues with its restructure and a programme of disposals aimed at allowing it to refocus on its core property and casualty business.
Commenting on the third quarter results, AIG President and chief executive officer, Robert H Benmosche, said: “Our results reflect continued stabilization in performance and market trends.”
He added: “AIG employees are working to preserve the strength of our insurance businesses in a challenging market by working closely with our distribution partners, with third quarter 2009 showing signs of stabilization.”
Category: Companies News, Financials
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