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Friday, November 06, 2009

AIG Posts Second Consecutive Quarterly Profit

Reuters

NEW YORK--American International Group Inc (AIG), the insurer bailed out by the U.S. government, posted its second-straight quarterly profit on Friday, helped by recovery in the value of its investments.

Net profit was $455 million, or 68 cents a share, compared with a loss of $24.47 billion, or $181.02 a share, in the year-earlier quarter.

Adjusted profit, excluding realized gains and losses, was $1.9 billion, or $2.85 a share, compared with a loss of $9.2 billion, or $68.36 a share in the year-earlier period.

U.S. taxpayers have put up to $180 billion at AIG's disposal since September 2008, including more than $80 billion in loans that the company has been trying to repay through asset sales.

Once the world's largest insurer, AIG nearly collapsed under massive losses and collateral demands from credit default swaps it had sold to financial firms to guarantee residential mortgage investments.

Its shares fell more than 10% to $35 in premarket trading.

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