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: American International Group has posted its second straight profit as investment losses narrowed and catastrophe costs declined. Shares dropped in early trading as revenue fell at life and property-casualty operations. Third-quarter net income of $455 million, or 68 cents a share, compares with a net loss of $24.5 billion, or a reverse split-adjusted $181 a year earlier, New York-based AIG said on Friday in a regulatory filing.
“Even with the profit, AIG's still a sick company," said Robert Haines, an analyst at CreditSights Inc in New York. "The trends of the underlying business units are ultimately more important to the company than a positive quarterly figure.”
Chief executive officer Robert Benmosche, who started in August, is seeking to halt the departure of customers and employees so he can rebuild units he needs to sell to repay loans included in AIG's $182.3-billion bailout. Benmosche stopped auctions for an investment adviser and a pair of Japanese units because he said they were more valuable with AIG.
AIG, which was rescued last year after soured bets tied to mortgages pushed it to the brink of collapse, owes $44.5 billion on its Federal Reserve credit line, $3.2 billion more than three months earlier. The figure rose as the firm propped up its plane-leasing unit by extending $2 billion in credit and paid down a US commercial paper facility.
AIG shares fell $2.53, or 6.4% to $36.75 at 7:09 am in early New York trading. Sales at property-casualty operations fell about 13% to $8.07 billion. Life insurance premiums and other considerations dropped 16% to $7.85 billion.
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