AIG Posts 2Q Profit As Capital Losses Decline |
| Wall Street Journal - Aug 7, 2009 |
American International Group Inc. (AIG) stanched the flow of write-downs and investment losses to turn its first profit in six quarters, though its core insurance operations are still struggling to rebuild.
Shares were up 18% at $26.49 around midday Friday after the New York insurer and financial services company reported a surprising $1.82 billion profit for the second quarter, compared with a year-earlier $5.36 billion loss. The stock was already up 71% this week amid optimism ahead of the quarterly report.
AIG's Financial Products division, the primary source of losses that led the company to receive a massive government bailout last year, benefited from a swing in the market value of its derivatives portfolio amid improved credit conditions. The division reported $636 million in unrealized market value gains on its credit default swap portfolio, compared with a $5.57 billion market value loss in the year-ago quarter.
Read Full Article from Wall Street Journal
- Posted: 2009-08-07 13:29:23
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