AIG posts first profit since bailed out

AIG posts first profit since bailed out
# 07 August 2009 16:07 (UTC +04:00)
Baku-APA-Economics. American International Group Inc., the insurer rescued by the U.S. government, reported its first profit in seven quarters as investment losses narrowed. The stock gained 5.6 percent in early trading.
Second-quarter net income of $1.82 billion, or $2.30 a share, compares with a net loss of $5.36 billion, or a split- adjusted $41.13, a year earlier, New York-based AIG said today in a regulatory filing. Operating income, which excludes some investment results, was $2.57 a share, beating the average estimate of five analysts surveyed by Bloomberg by $1.07.
AIG gained $1.27 to $23.80 at 7:42 a.m. in New York. The insurer surged 71 percent this week through yesterday in New York Stock Exchange composite trading on speculation results would improve. The stock plunged more than 95 percent in the past 12 months. AIG in June gave investors one new share for every 20 they turned in, a so-called reverse split the company said would help keep the stock above $1 and avoid delisting. AIG closed at $22.53 yesterday.
Realized investment losses narrowed to $859 million from about $4 billion a year earlier. Shareholders’ equity, a measure of assets minus liabilities, rose 27 percent to about $58 billion from $45.8 billion on March 31. Rivals including MetLife, the largest U.S. life insurer, and Aflac Inc., the top seller of supplemental coverage, recorded gains in book value as fixed-income holdings rebounded.
AIG Financial Products, the unit that sold credit-default swaps blamed for the insurer’s near collapse, reported a $132 million operating loss in the quarter, narrowing from a $6.2 billion loss a year earlier. The results included $636 million in unrealized market valuation gains on its swap portfolio.
Under Liddy, appointed by the government in September, AIG started a plan to shed most businesses excluding property- casualty operations. He was forced to adjust the plan to include placing three major divisions into special purpose vehicles and seek relaxed terms on AIG’s government loans as the credit crisis hobbled potential buyers’ ability to make bids.
1 2 3 4 5 İDMAN XƏBƏR
#
#

THE OPERATION IS BEING PERFORMED