AIG Declares Quarterly Profit – US-FOREX.US
American International Group, the insurer that, on the brink of collapse, in 2008 received 180 billion in federal bailout funds, has reported its first profit since the third quarter of 2007. Second quarter net earnings were 1.8 billion, or 2.30 a share, against a net loss of 5.4 billion, or 41.13 a share in the same period a year earlier. Earnings release. After paying dividends on the government’s preferred stock, profit attributable to common shareholders was 311 million. The U.S. government owns 80% of the company. The reported results beat analysts’ expectations. AIG
‘s shares rose strongly in early New York trading. “Our results reflect stabilization in certain of our businesses,” Chief Executive Edward M. Liddy said in a statement. But other operations, including its main insurance business, “remained challenged, largely driven by weak economic conditions and the lingering effect of the negative AIG events earlier in the year,” he said. The company’s general insurance operations posted operating income, which excludes net realized capital gains, of 1 billion, down from 1.7 billion a year earlier.
In a filing with the Securities and Exchange Commission, AIG said it had sold 8 billion of assets this year, 4.6 billion of which would be available to begin repaying debts, including those to the government.