AIG back in the black; reports $1.8 bn Q2 profit

Swinging into the black for the first time in two years, embattled insurer American International Group (AIG) has posted a second-quarter profit of $1.8 billion.

One of the most battered in the ongoing financial turmoil, AIG has received nearly $100 billion of taxpayers money to stay in the business.

The insurer recorded a profit of $1.8 billion for the three months ended June 30, the firm said in a statement today. In the comparable period, AIG had a loss of $5.4 billion.

AIG has reported the "first quarterly profit since the third quarter of 2007, as certain of its businesses stabilised and the company's results reflected positive valuation changes", the statement noted.

 

The company incurred massive losses of about $100 billion in 2008 and was on the verge of collapse.

AIG Chairman and Chief Executive Officer Edward M Liddy said that good second quarter results was due to reductions in net realised capital losses and continued reductions in the risk profile of the AIG Financial Products Corp, among others.

In the first six months of 2009, AIG completed dispositions/asset sales that would generate proceeds worth about $2.6 billion.