Business

AIG profits hit by loan repayment and natural disasters

AIG logo
Image caption AIG is 92%-owned by the US government

Insurance giant AIG has seen profits fall sharply after repaying government support and incurring heavy losses from natural disasters.

AIG's first quarter profit was $269m (£164.4m) after making $1.8bn a year earlier.

The company took a charge of $3.3bn for repaying the Federal Reserve Bank of New York two years early.

It also lost $1.7bn from disasters including Japan's earthquake.

Those came at its global insurance arm, Chartis, a property-casualty business.

The losses also include those incurred from the New Zealand earthquake and massive flooding in Australia.

AIG is 92%-owned by the US government, which intends to start returning the company to public ownership this month.

AIG also set aside $385m to pay the US Treasury for the costs related to selling its shares.

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