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The largest world insurer incurs losses

18 August 2008

In April-June, 2008, American International Group (AIG), the largest insurance company of the world has fixed the pure loss in $5,36 billion.
The insurer fixes huge losses the third quarter successively on a background of crisis in the real estate market of the USA, which has led to a collapse of cost of many financial actives, and also because of deterioration of a conjuncture in many segments of the USA insurance market.
On average analysts were much more optimistic, expecting from the company profit in 63 cents per share, but thus their estimations were in unusually wide range from the loss in 31 cent up to profit in $1,3 per share.

Besides, write-off of investments, on parameters of the company deterioration of a conjuncture in a number of sectors of economy has also affected. So, because of recession in the housing market and growth of a level of defaults under mortgages loss has incurred the division, engaged in hypothec credits insurance.
Last year AIG has already suffered losses in $14 billion.


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