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AIG back in black as new chiefs named

Recovering giant AIG continues to make headlines with the appointment of two experienced financial services managers to replace Edward Liddy as Chairman and CEO and its first quarterly profit since 2007.

The company has announced a $US1.8 billion ($2.15 billion) profit for the second quarter this year, in sharp contrast to the $US5.3 billion ($6.3 billion) loss it suffered in the corresponding period last year.

AIG puts the improved result down to reduced capital losses and improved market conditions.

However, net written premiums were down 19.2% at $US7.9 billion ($9.4 billion) for general insurance, and life slipped 15.3% to $US8.1 billion ($9.7 billion). This result underlines the lingering effects of tough economic conditions and the fallout from AIG’s near-collapse last year which prompted the US Government bailout.

The next year will be no picnic for the two men who will succeed Mr Liddy.

Robert Benmosche takes over today as CEO and President. He led US life insurance behemoth MetLife from 1998 to 2006, will be AIG’s sixth CEO since 1919 and its fourth in only two years.

Board member Harvey Golub, who was chairman and CEO at American Express from 1993 to 2001, will take over as non-executive chairman.