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AIG Posts Loss On Restructuring Costs

By Don Amos / November 5, 2010

AIG Posts Loss –  Insurance giant AIG reports a loss of $2.4 billion on $19 billion in revenue. The net loss includes more than $4 billion in charges tied to restructuring.

During the third quarter, AIG took in $865 million in pre-tax income from its general-insurance operations, up 27% year-over-year, with net premiums written up 6.5%.

Its domestic life insurance and retirement division earned $998 million in pre-tax income with premiums down incrementally.

The foreign counterpart to those operations posted better results, with pre-tax income of $691 million, up 30% year-over-year and premiums up nearly 15%.

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.

Benmosche said AIG’s core insurance operations “remain solid,”  “Despite soft market conditions in the property casualty market and a low interest rate environment, these businesses have demonstrated their market leadership and are maintaining their discipline,” he said.

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