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Monday, March 02, 2009

AIG Reports Quarterly Loss of $61.7 Billion

By Joanna Ossinger

FOXBusiness

American International Group (AIG) on Monday reported a staggering fourth-quarter net loss of $61.7 billion, showing that despite multiple U.S. government interventions, the company hasn’t been able to stanch its bleeding from the credit crisis yet.

AIG’s loss of $61.7 billion, or $22.95 a share, compared with a loss of $5.3 billion, or $2.08 a share, in the same period the prior year.

This comes the same day the U.S. announced major revisions to its bailout plan for the insurer, in which U.S. taxpayers take on more risk to help the company out of its dire position.

AIG said its results “were negatively affected by continued severe credit market deterioration, particularly in commercial mortgage-backed securities [CMBS], and charges related to ongoing restructuring-related activities.”

The insurer said its adjusted net loss for the quarter was $37.9 billion, or $14.17 a share.

In addition, the company reported full-year results, showing a net loss of $99.29 billion, or $37.84 a share.

AIG noted that this is the first time since Sarbanes-Oxley became effective in 2004 that the insurer’s management expressed an unqualified assessment of the company’s internal control over financial reporting, crediting “comprehensive and substantial remediation efforts.”

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