Insurance giant AIG reports £3.9bn net loss

  • Story by: Sharon Flaherty
  • Magazine: FTAdviser
  • Published Friday , May 09, 2008

Global insurance group AIG has reported a net loss of $7.81bn (£3.99bn) for the first quarter of 2008 as a result of disruption in credit markets.

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This represents a loss of $3.09 (£1.58) per diluted share.

For the first quarter of 2007, the group reported net income of $4.13bn (£2.11bn) or $1.58 (£0.80) per diluted share.

The group said a combination of the continuation of the weak US housing market, the disruption in the credit markets and equity market volatility had resulted in a substantial adverse effect on its results for the first quarter ended 31 March 2008.

AIG president and chief executive officer Martin Sullivan, said: "AIG's results do not reflect the underlying strengths and potential of AIG, rather they reflect the extremely adverse external conditions affecting the spectrum of companies exposed to the US residential housing, credit and capital markets."

Looking ahead, he added that the firm was well positioned for future long-term growth.

"We are taking appropriate strategic actions to ensure our businesses are well positioned to capitalise on opportunities provided by the current environment."



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