Business

AIG reports $2.7bn second quarter loss

The Pine Street headquarters of American International Group
Image caption AIG was rescued by the US government during the financial crisis

US insurer AIG swung to a $2.7bn (£1.7bn) loss in the second quarter after taking a big charge related to the sale of one of its foreign subsidiaries.

AIG took a $3.3bn charge linked to the sale of Alico, its second-largest foreign life insurance business.

The loss compared with a net profit of $1.8bn in the same period last year.

On an adjusted basis, AIG made a $1.3bn profit. The group said its continuing operations remained solid.

AIG is 80%-owned by the US government after it was bailed out out for $182bn at the height of the financial crisis.

"AIG's continuing insurance operating results remain solid, while the company continues to execute on its restructuring plans and prepares for separation from the US government," commented AIG chief executive Robert Benmosche.

The sale of Alico to rival MetLife is expected to be completed by the end of the year.

Investors reacted favourably to the results, which topped Wall Street's expectations.

AIG shares ending the day up more than 2.5%.

The company is also hoping to push ahead with a public offering of its Asian business AIA later this year, after a deal to sell it to the UK's Prudential fell through.

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