World’s largest insurer has not avoided hypothec crisis
In the fourth quarter 2007 losses of American International Group (AIG) have reached the record sum of $5,29 billion because of the write-offs, connected with crisis in the hypothec market.
The world’s largest insurer did not face such losses for all 89-years history. Company AIG has not justified expectation of the analysts expected smaller losses - at the level of $0,15 per share.
For comparison, during the similar period of 2006 AIG has received net profit in the sum of $3,44 billion, or $1,31 per share.
The corrected losses for the fourth quarter have made $3,2 billion, or $1,25 per share. Thus in the fourth quarter, 2006, the company has taken the corrected net profit at the rate of $3,85 billion, or $1,47 per action.
The chapter of the company Martin Sullivan has declared, that despite of “obviously unsatisfactory results” and possible write-offs in the further, AIG does not think, that contents of its investment portfolio will strongly worsen in long-term prospect.