US insurance giant AIG loses $2.4bn in quarter
American International Group, the giant insurer rescued by US tax payers during the credit crisis, has plunged to a third-quarter losses of $2.4bn.
It made the losses as it sold parts of its business to repay more than $100bn owed from the bail-out two years ago.
AIG's main insurance business also had a mixed performance.
The $2.4bn loss compares with a $455m profit made a year ago. Operating losses were only $200 million, or $1.47 per share.
AIG had warned in August that the sale of a majority stake in American General Finance would lead to a $1.9bn pre-tax loss. The company also took a $1.3bn charge from the sale of Japanese life insurance businesses AIG Star and AIG Edison to Prudential Financial, a deal due to close early next year.
AIG said its recapitalisation plan was on track. By early next year, it is expected to owe the US government around $100bn, leaving US Treasury with a stake in the company of just above 92%.
AIG's remaining operations mostly consist of a general insurer, Chartis, and US life insurer and retirement services provider SunAmerica Financial Group.