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Signs are good for AIG Australia

AIG Australia is celebrating a “positive” first quarter and acknowledging the efforts of its US parent to maximise the value of its core businesses and repay US taxpayers.

Last week AIG reported a net loss for the first quarter of $US4.35 billion ($5.7 billion) compared with its loss of $US7.8 billion ($10.3 billion) in the same quarter last year. The result was well above its record loss last quarter of $US61.7 billion ($80.4 billion).

AIG Australia CEO Chris Townsend told insuranceNEWS.com.au the AIU network of companies, of which it is a part, also posted strong first-quarter results, earning $US3.5 billion ($4.6 billion) in net premiums, down 4.5% from the same period last year.

“During a challenging environment for businesses, [this] is another positive step on the road to greater stability and a bright future for the AIU network and AIG Australia,” he said.

Mr Townsend says most importantly, the parent company has not had to announce new financial arrangements or requirements for additional capital.