AIG Posts $5.2B Loss on Writedown

Giant insurer takes $11B charge on mortgage woes
By Will McCahill,  Newser Staff
Posted Feb 28, 2008 5:49 PM CST
A man exits the American International Building in New York's Financial District, Wednesday, Feb. 27, 2008. American International Group Inc. reported late Thursday it lost $5.2 billion in the fourth...   (Associated Press)
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(Newser) – Today's after-hours bad news from the credit-crunch front comes from insurer AIG, which reported a fourth-quarter loss of $5.29 billion after taking an $11 billion writedown on mortgage-related insurance contracts, the Wall Street Journal reports. The loss amounts to $2.08 per share; American International Group turned a profit of $1.31 in the fourth quarter of 2006.

The loss seems certain to tap into investor anger over the downward spiral that accompanied Martin Sullivan's ascension to CEO in 2005. "People are just so frustrated with management," one analyst tells Bloomberg, "with the price of the stock and with their performance." Sullivan called the 2007 results "clearly unsatisfactory" but predicted that continuing uncertainty will take a toll on AIG. (Read more AIG stories.)