AIG says $182 billion bailout not enough, wants more
27 Feb 2010
American International Group Inc (AIG), once the world's largest insurer, which narrowly missed bankruptcy unlike Lehman Brothers in 2008, has said that it may require additional US government support after incurring an $8.9-billion net loss in its fourth-quarter.
AIG, which posted a $10.9-billion loss last year in the midst of the global financial crisis, said that the fourth quarter net loss of $8.9 billion was a far improvement from the $61.7 billion loss for the same period in 2008 and the $100 billion loss for the whole of 2008.
AIG made a net loss of $12.3 billion for the whole of 2009.
Robert Benmosche, hired in August as AIG's chief executive, said that the insurance major's restructuring plan has shown ''great progress'' by selling non-core businesses, reducing exposure to risky assets and stabilising its insurance operations.
Despite this, the New York-based AIG said in a filing with the US Securities and Exchange Commission that it may need additional government support. ''Without additional support ... there could exist substantial doubt about AIG's ability to continue as a going concern,'' the filing said.
The US government bailed out AIG with a initial loan of $85 billion in September 2008 following the global financial crisis, where the insurer was on the verge of bankruptcy due to its risky transactions in mortgage securities and derivatives., (See: $85-billion bailout for AIG)