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AIG posts $8.9 bn Q4 loss, warns of more aid

AIG posts $8.9 bn Q4 loss, warns of more aid
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First Published: Fri, Feb 26 2010. 06 28 PM IST
Updated: Fri, Feb 26 2010. 06 28 PM IST
New York: American International Group Inc (AIG) reported a quarterly loss of $8.9 billion on Friday and warned that it may need additional US government support, even as it tries to pay back taxpayers after a $182.3 billion bailout.
AIG shares fell 14% in premarket trading.
The insurer said in a filing with the Securities and Exchange Commission (SEC) that without additional government support, “in the future there could exist substantial doubt about AIG’s ability to continue as a going concern.”
Fourth-quarter results were hurt by charges related to asset divestments, an increase in commercial insurance loss reserves and an tax-related allowance.
AIG, which is nearly 80% -owned by the government, reported an adjusted loss of $7.2 billion, or $53.23 per share, compared with an adjusted loss of $38.5 billion, or $287.69 per share, a year earlier.
chief executive Robert Benmosche has said he envisions a smaller AIG in the future, with global property-casualty and US life and annuity operations at its core.
AIG is in talks to sell its American Life Insurance Co unit to MetLife Inc, but that deal has been delayed over a tax matter.
AIG is also moving ahead with a massive initial public offering of American International Assurance, its Asian life insurance business.
Separately, a source familiar with the situation said AIG has decided not to use securitized US life insurance policies to pay down a Federal Reserve Bank of New York credit facility.
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First Published: Fri, Feb 26 2010. 06 28 PM IST