Insurance Giant, American International Group announced losses of $8.87 billion in the fourth quarter weak insurance dealings and returns of government loans proved to heavy a burden.
In an annual regulatory filing with the Securities and Exchange Commission AIG mentioned that supplementary government support may be necessary to keep the company afloat. Whether this request will be granted remains to be seen, though this is not the first time AIG has asked for government support in a filing.
Despite the dire fourth-quarter reports, the results were actually a massive improvement upon the $61.7 billion AIG lost a year ago for the quarter. Even still, they were significantly higher than expected by analysts following two consecutive quarters of profit for AIG.
From a year ago, new premiums in its general insurance business fell by 2.2 percent as a result of the weak economy/ Sales of life insurance also diminished. Most notably generating debt though, was the $6.2 billion repaid to the government for the quarter.
Investors were naturally disappointed by the results pushing shares of AIG stock down $2.07, or 7.5 percent in morning trading. For the final quarter of 2009, the company lost $65.51 per share.
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