American Insurance Group (AIG), in which the US government has a stake of almost 80%, had good news for taxpayers in the first quarter of 2010, reporting that it had generated a net profit of $1.45bn.
The result compares with a net loss of $4.35bn in the fourth quarter of 2009.
AIG reported a net loss of $7.2bn in the fourth quarter following two consecutive profitable quarters.
In the third quarter of 2009, AIG reported a net profit of $455m and in the second quarter a net profit of $1.82bn was reported.
Results for the first quarter of 2010 include contributions from units sold during the quarter for a total of $51bn.
The most significant of these sales were AIA Group sold to UK insurer Prudential for $35.5bn and American Life Insurance Company (ALICO) sold to US insurer MetLife for $15.5bn.
Excluding AIA and ALICO and other units in the process of being sold, net profit from AIG’s continuing operations in the first quarter of 2010 was $809m. Excluding the units sold, AIG’s net loss in the first quarter of 2009 was $2.09bn.
