AIG reports US$4.35 billion loss in 2009 Q1

American International Group Inc. (AIG) reported a 2009 Q1 net loss of US$4.35 billion, compared to 2008 Q1’s net loss of US$7.81 billion.
General insurance net premiums written were US$10 billion in 2009 Q1, a 17.5% decline compared to the same period of 2008.
The general insurance unit’s underwriting profit of US$405 million reported in 2008 Q1 sank to an underwriting loss of US$206 million in 2009 Q1.
General insurance’s net investment income also dropped from 2008 Q1’s US$1.2 billion to US$652 million in 2009 Q1.
The unit’s combined ratio climbed to 101.96% from 96.44% quarter-over-quarter. Loss ratio also climbed to 76.6% from 70.4%, quarter-over-quarter.
“AIG’s first quarter 2009 results reflect our efforts, with ongoing support of the Federal Reserve and the U.S. Treasury, to execute on our plans which were designed to maximize the value of our core businesses and repay U.S. taxpayers,” AIG chairman and CEO Edward Liddy said.
“Importantly, we are moving forward with our efforts to position our strong insurance companies as discrete businesses, for the benefit of all stakeholders, including policyholders, employees and distribution partners.”