Friday, August 06, 2010

US insurer AIG reports $2.65 bln quarterly loss

Ailing US insurance giant AIG swung Friday to a 2.65-billion-dollar loss in the second quarter from a year-ago profit, hurt by massive costs to be incurred in the sale of a key subsidiary.

American International Group, which was rescued by the government during the financial crisis, said the loss largely came from a 3.3-billion dollar "non-cash goodwill impairment charge" linked to the sale of Alico, AIG's second-largest foreign life-insurance business.

Excluding the charge, AIG said it made an adjusted net income of 1.3 billion dollars.

AIG president and chief executive Robert Benmosche said its "continuing insurance operating results remain solid, while the company continues to execute on its restructuring plans and prepares for separation from the US government.

"Our overall strategy remains unchanged. We remain focused on monetizing AIA and ALICO as quickly as possible in order to repay taxpayers, at values reflecting the unique strengths of these highly attractive franchises."

AIG received more than 180 billion dollars in government aid during the financial crisis as bad bets on mortgage-backed securities and other toxic assets threatened to engulf the company.

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