- Prison Planet.com - http://www.prisonplanet.com -
AIG Posts Loss Tied to Rescue, Reserves; Shares Fall
Posted By admin On February 26, 2010 @ 10:14 am In Money Watch | Comments Disabled
Friday, February 26th, 2010
American International Group Inc. posted a wider-than-expected loss after setting aside more reserves for insurance claims and paying down bailout debts. The shares fell 8.5 percent in New York trading.
The fourth-quarter net loss of $8.87 billion, or $65.51 a share, narrowed from $61.7 billion, or $458.99, a year earlier when AIG recorded the biggest loss in U.S. corporate history, the New York-based firm said today. Results included $6.7 billion in charges fueled by paying down AIG’s Federal Reserve credit line. It cost AIG $1.8 billion to add to property- casualty reserves as sales in the division slipped 2.2 percent.
“The reserve boost is a little red flag, as the industry is seeing largely favorable trends in reserve development,” said Bill Bergman, an analyst at Morningstar Inc. in Chicago. “It was a messy quarter, and overall it shows you how deep a hole they’ve dug, and how hard it is for them to dig out.”
Chief Executive Officer Robert Benmosche, 65, appointed in August, must increase insurance profits to repay loans in AIG’s $182.3 billion bailout. Benmosche, who has told staff that AIG was “too big,” is also divesting two of the company’s largest non-U.S. life insurance divisions to reduce the firm’s draw on a Federal Reserve credit line by $25 billion.
Article printed from Prison Planet.com: http://www.prisonplanet.com
URL to article: http://www.prisonplanet.com/aig-posts-loss-tied-to-rescue-reserves-shares-fall.html
URLs in this post:
 Full article here: http://www.bloomberg.com/apps/news?pid=20601087&sid=aQsz6QGbXMfE&pos=1
 Image: http://www.prisonplanet.tv
 U.S. Postal Service posts $1.9 billion loss, despite efficiency efforts: http://www.prisonplanet.com/u-s-postal-service-posts-1-9-billion-loss-despite-efficiency-efforts.html
 RBS Posts the Largest Loss in UK History: http://www.prisonplanet.com/rbs-posts-the-largest-loss-in-uk-history.html
 Fannie Mae Posts Record $29 Billion Quarterly Loss: http://www.prisonplanet.com/fannie-mae-posts-record-29-billion-quarterly-loss.html
 Bank of America Posts Loss After Firm Repays Bailout: http://www.prisonplanet.com/bank-of-america-posts-loss-after-firm-repays-bailout.html
 U.S. Stocks Drop, Dow Average Posts Worst 2-Day Loss Since ’87: http://www.prisonplanet.com/us-stocks-drop-dow-average-posts-worst-2-day-loss-since-87.html
Copyright © 2013 PrisonPlanet.com. All rights reserved.