AIG's Stock Up 97%: Success Story of the Year?

Insurer has shot up 97% in 2010
By Kevin Spak,  Newser Staff
Posted Dec 29, 2010 7:00 AM CST
AIG's Stock Up 97%: Success Story of the Year?
In this March 17, 2009 file photo, an AIG banner flies at the office building in New York.   (AP Photo/Mark Lennihan, file)

(Newser) – Don’t look now, but financial crisis punchline AIG has had a monster year on the market, with its stock soaring 97% to $58.93. Of that, 42% was gained in December alone. That makes the insurer the fourth-best performer on the S&P 500 this year, and puts the government in a position to make a profit when it sells off its 92% stake, the Wall Street Journal reports.

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Of course, that eye-popping share price is a bit deceptive, because the company performed a 20-to-1 reverse stock split during its crisis tumble. If it hadn’t, its share price would be about $2.95 today, compared with $57.94 in 2007. The company looks relatively healthy now, having shed some risky businesses and secured new lines of credit. It now appears likely that the Treasury’s sale could leave value for private shareholders—something that seemed nigh-impossible last year. (Read more AIG stories.)

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