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AIG slides to a loss, hurt by Superstorm Sandy

Published on NewsOK Modified: February 21, 2013 at 4:47 pm •  Published: February 21, 2013
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American International Group lost $4 billion in the last three months of 2012 as the insurer absorbed costs related to damage caused by Superstorm Sandy and the sale of its airplane leasing unit.

AIG posted an operating profit that was better than analysts were expecting, however, and its stock rose in after-hours trading. It was the first financial report for the bailed-out insurer since the government sold off the last of its stake in the company in December.

The New York-based company became a household name after it received a $182 billion bailout package from the government at the height of the financial crisis in 2008. The company nearly imploded by making huge bets on mortgage investments that later went wrong.

Last month the company refused to join a lawsuit being brought against the U.S. government by its former CEO Maurice "Hank" Greenberg. The lawsuit claimed that the terms of the taxpayer-funded bailout were too onerous.

AIG has repaid the government's bailout funds over the years. It has also undergone a massive restructuring that cut its size in half as it turned its focus to its core business of writing insurance.

For the three months ended Dec. 31, AIG reported a loss of $4 billion, or $2.68 per share. That compares with net income of $21.5 billion, or $11.31 per share, in the prior-year quarter, when AIG benefited from a tax-related accounting gain of $19.2 billion.

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