New York-based American International Group Inc (AIG) said on Friday it lost US$8.87 billion in the fourth quarter as its general insurance business remained weak and the company ran up expenses from paying back government loans.
The troubled insurer also said in an annual regulatory filing that it may need additional support from the government.
However, AIG has included such warnings in past filings with the Securities and Exchange Commission.
The fourth-quarter results were an improvement from the US$61.7 billion AIG lost in the year ago period, but they were worse than analysts expected. They also followed two straight profitable quarters.
The company reported a 2.2 percent drop in new premiums in its Chartis general insurance business, compared with a year earlier.
AIG attributed the slide in part to the weak economy. It also had lower sales of life insurance products, and it added US$2.3 billion to its reserves against losses in its commercial insurance business.
AIG also reported US$6.2 billion in expenses from repaying government loans.
It also said it lost US$65.51 per share in the last three months of last year. The compares to a loss of US$458.99 per share in the fourth quarter of 2008.
On average, analysts surveyed by Thomson Reuters forecast a quarterly loss of US$3.94 per share.
AIG was bailed out in September 2008 by the government as the financial crisis spiraled out of control.
The insurer has received aid packages with a total value of US$182.5 billion from the government. In return for that financial support, the government received an 80 percent stake in AIG.
Since receiving government bailout funds, AIG has completed 19 unit sales or asset transactions in an effort to repay government debt.
It reported on Friday that it continues to unwind its Financial Products Group, the unit blamed for AIG’s downfall.
“Clearly we will be a smaller and more focused company than in the past,” CEO Robert Benmosche said in a prerecorded message. “The only way we can repay taxpayers is to divest parts of this organization.”
Earlier this month, MetLife Inc confirmed that it is in talks with AIG to buy one of AIG’s insurance units. Media reports price the deal at as much as US$15 billion.
The two companies have been in discussions for months about a potential deal for AIG’s American Life Insurance Co, known as Alico.
Alico is an international life and health insurance business that operates in more than 50 countries.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Tokyo Electron's Taiwan unit today said in a written response that it respects the judicial process, takes the court ruling seriously and would not appeal in the Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) trade secrets case. Last month, a court fined the Taiwan unit of Japan's Tokyo Electron NT$150 million (US$4.74 million) in a case involving trade secrets related to TSMC's sensitive chip technology.
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS