… as it records a record loss
AIG reported a $US24.47 billion ($38.27 billion) net loss for the third quarter, compared to a profit of $US3.09 billion ($4.8 billion) for the third quarter of last year.
It recorded $US15.06 billion ($23.5 billion) of capital losses arising from impairment charges on its investment portfolio.
Also contributing were losses related to credit default swaps of $US4.59 billion ($7.2 billion) and partnership and mutual fund investment losses of $US1.1 billion ($1.7 billion).
In general insurance lines AIG reported an operating loss of $US899 million ($1.41 billion) compared to a profit of $US2.51 billion ($3.9 billion) in the third quarter of last year.
This was driven by significant catastrophe losses of $US1.39 billion ($2.2 billion) primarily related to Hurricanes Gustav and Ike, compared to $US24 million ($37.5 million) in corresponding period last year.
The combined ratio blew out over 23 percentage points to 113.61%.
New Chairman and CEO Edward Liddy says the company’s reported earnings “are not indicative of the underlying core earnings power of our insurance businesses, which remain solidly capitalised”.
It recorded $US15.06 billion ($23.5 billion) of capital losses arising from impairment charges on its investment portfolio.
Also contributing were losses related to credit default swaps of $US4.59 billion ($7.2 billion) and partnership and mutual fund investment losses of $US1.1 billion ($1.7 billion).
In general insurance lines AIG reported an operating loss of $US899 million ($1.41 billion) compared to a profit of $US2.51 billion ($3.9 billion) in the third quarter of last year.
This was driven by significant catastrophe losses of $US1.39 billion ($2.2 billion) primarily related to Hurricanes Gustav and Ike, compared to $US24 million ($37.5 million) in corresponding period last year.
The combined ratio blew out over 23 percentage points to 113.61%.
New Chairman and CEO Edward Liddy says the company’s reported earnings “are not indicative of the underlying core earnings power of our insurance businesses, which remain solidly capitalised”.