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AIG posts first profit since 2007 | AIG posts first profit since 2007 |
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Insurer AIG has seen its first quarterly profit since 2007, as its business improved during the period. | Insurer AIG has seen its first quarterly profit since 2007, as its business improved during the period. |
It made a $1.82bn (£1.09bn) profit in the three months to June, after a loss of $5.4bn in the same period of 2008. | |
AIG was bailed out by the US government in 2008 and is now 80% state-owned. In total, the firm has received $182.5bn of government funding. | |
Its earnings were boosted by investment gains but the company's insurance operations remained weak. | |
AIG said it was closer to unwinding AIG Financial Products, the arm responsible for nearly 50% of its $99bn losses in 2008. | |
"Our results reflect stabilisation in certain of our businesses," Ed Liddy, chief executive said. | |
Other operations, he said, "remained challenged largely driven by weak economic conditions and the lingering effect of the negative AIG events earlier in the year". | |
Analysts welcomed the report. | |
"The reality is that the numbers are getting better and as a result it could be viewed as a potentially constructive first step towards financial success," said Michael Holland, a money manager with Holland & Co. | |
Mr Liddy, appointed after AIG's near-collapse, is to step down after eleven months in the job. His appointment was always meant to be temporary. Robert Benmosche will replace him. |