AIG Posts $1.82 Billion in Net Income, First Profit Since 2007

Source: Bloomberg

Aug. 7 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, reported its first profit in seven quarters as investment losses narrowed.

Second-quarter net income of $1.82 billion, or $2.30 a share, compares with a net loss of $5.36 billion, or a split- adjusted $41.13, a year earlier, New York-based AIG said today in a regulatory filing.

The results may ease pressure on Robert Benmosche, AIG’s fifth chief executive officer since 2005. The former MetLife Inc. head, who replaces Edward Liddy next week, has to dismantle AIG to repay loans within a $182.5 billion bailout. The insurer posted more than $100 billion in net losses driven by failed housing market bets in the six quarters ended March 31.

“This buys him more time because its shows they’re getting some traction,” said Haag Sherman, who helps oversee $7.3 billion as chief investment officer of Houston-based Salient Partners. “He can use the operating profit to show that they have good assets and they just need more time to divest them in an orderly fashion to get the best prices for shareholders and the U.S. government.”



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=anPPxyg5I_oI

:hi:

They jacked my car insurance rates up 200% AFTER the bailout. I had no traffic issues and they only made money off me.

:rofl:

Mornin', RedCloud! :pals:

only 200 quarters of that to go before they almost are able to pay us back

So, now they can actually afford those huge bonuses to their CEO and other executives. Don't you just love the FREE markets? :sarcasm:

ok, ignoring taxes. :)

Looking forward five to seven years.

AIG does own some valuable assets, that if sold off in an orderly manner, and not a short sale or fire sale, will return some capital to investors (us).

Just as a POI, I bought 10K AIG @ $0.37. I figured, what the hell, the goverment (meaning we taxpayers) thought we should buy them, they will not let them fail.