Beverly Hills 2/27/2010 2:41:37 AM
News / Business

AIG loses $8.87 Bil in 4Q

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.

About EQUITIES:

Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.

Sign up for a free one-year subscription