American International Group Inc. swung to a third-quarter loss as the bailed-out insurer wrote down the value of units it is selling and took charges tied to repaying rescue loans.
The net loss of $2.4 billion compares with profit of $455 million a year earlier, the New York-based firm said today in a statement. The adjusted net loss, which excludes some investment results and businesses being sold by the company, was $200 million.
Chief Executive Officer Robert Benmosche is selling assets and planning to raise funds from private investors to repay taxpayers and return the company to independence. AIG expects to retire its Federal Reserve credit line with proceeds from the sale of two non-U.S. life units and convert a $49.1 billion Treasury Department stake into common stock by the end of March.
Read the rest of the article at: http://www.bloomberg.com/news/2010-11-05/aig-loss-narrows-at-units-held-by-bailed-out-insurer-on-fewer-writedowns.html
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Trust me, this one is a long article but well worth the read. The continuing saga of AIG in its quest to sell of divisions and pay back the US Fed and Treasury is a fascinating one for me. I half expected it to have had a massive negative impact of the life insurance industry when in fact it’s only affected the company. Still time yet, but in fact in might help the life insurance market in the long term, it’s creating more competition as the behemoth is reduced to size.
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