The largest American insurer declared record losses
5 March 2008Net loss of American International Group (AIG) in the fourth quarter of 2007 have made 5,29 billion dollars, informs Reuters. For the similar period of 2006 the insurance company reported the profit at a rate of 3,44 billion dollars.
The declared losses are the biggest from the moment of primary distribution of shares 40 years ago. Last time the company took a bath in the fourth quarter of 2002 at a rate of 103,8 million dollars.
Volumes of losses in the fourth quarter of 2007 were affected with write-off of the cost of the insurance contracts connected to the mortgage - 11,1 billion dollars. Net profit of the AIG for all 2007 has decreased by 56% to 6,2 billion dollars.
American International Group is the largest American company, which takes the first place on life insurance in the USA and the second place in the world on property insurance. Capitalization of the company makes 172,3 billion dollars.
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