AIG posts first profit since 2007

10 August 2009

American International Group (AIG) has recorded its first profit in seven quarters today (August 7th).

The insurance company posted second-quarter net earnings of $1.82 billion, up from the net loss of $5.35 billion that was made a year previously.

This equates to a profit of $2.30 per share, and stock in the company has risen by $2.13 to $24.66 in pre-market trading as a result, Reuters reports.

Chairman and chief executive officer Edward Liddy said that the results are an indication of "stabilization in certain [areas] of our businesses".

"While our insurance companies' operating results remain challenged … performance trends stabilized from the first quarter," he explained, adding that the insurer reduced its net realized capital losses during the three-month period, with new accounting guidance and "improved market conditions" also helping boost performance.

Earlier this year the firm was forced to repay a proportion of the financial aid it had received from the US Treasury after there was public outcry over its decision to award bonuses to staff.

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