AIG back in the black

American Insurance Group (AIG), in
which the US government has a stake of almost 80%, had good news
for taxpayers in the first quarter of 2010, reporting that it had
generated a net profit of $1.45bn.

The result compares with a net loss
of $4.35bn in the fourth quarter of 2009.

AIG reported a net loss of $7.2bn
in the fourth quarter following two consecutive profitable
quarters.

In the third quarter of 2009, AIG
reported a net profit of $455m and in the second quarter a net
profit of $1.82bn was reported.

Results for the first quarter of
2010 include contributions from units sold during the quarter for a
total of $51bn.

The most significant of these sales
were AIA Group sold to UK insurer Prudential for $35.5bn and
American Life Insurance Company (ALICO) sold to US insurer MetLife
for $15.5bn.

Excluding AIA and ALICO and other units in the process of being
sold, net profit from AIG’s continuing operations in the first
quarter of 2010 was $809m. Excluding the units sold, AIG’s net loss
in the first quarter of 2009 was $2.09bn.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up