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in almost two years with second-quarter earnings of 1.8 billion
dollars. AIG was the largest single recipient of US bailouts with
the government pumping more than $170 billion into the firm to keep
it afloat and taking a controlling stake in the group in the
process. The company said its return to profits came as some
'businesses stabilized and the company's results reflected positive
valuation changes. AIG also achieved several important milestones in
its restructuring program.' Second-quarter net income of 1.8
billion dollars compares with a net loss of 5.4 billion dollars in
the same period last year. In the first quarter of 2009, the
bailed-out insurer lost $4.3 billion. 'Our results reflect
stabilization in certain of our businesses,' said AIG chairman and
chief executive Edward Liddy. 'We continue to focus on stabilizing
and strengthening our businesses, but expect continued volatility in
reported results in the coming quarters, due in part to accounting
charges related to ongoing restructuring activities,' said Liddy, who
is retiring on August 10. AIG has named insurance industry veteran
Robert Benmosche as president and chief executive. The results
excluding special items amounted to a profit of $2.57 per share, well
above the $1.67 expected by analysts. Revenues rose 48 per cent
from a year ago to $29.53 billion, better than the figure of $26.15
billion expected on Wall Street. The company was on the verge of
collapse late last year after backing trillions of dollars in risky
financial products amid a home mortgage meltdown that triggered
financial turmoil. Liddy was named last year to head AIG as it
wound down key operations after the government rescue. The company
has been selling off various units as it seeks to steady its financial
operations that suffered heavy losses from insuring risky bets on the
US real estate market. 'We continue to make significant progress in
our efforts to restructure the organization, stabilize its capital
structure, and maintain our liquidity position,' Liddy said. 'We
remain focused on the overriding goal of putting AIG in the best
possible position to meet our obligations to stakeholders, including
US taxpayers, by protecting and enhancing the value of our
businesses and positioning our key franchises for the future. The
time frame and path for achieving this goal will continue to be
highly dependent on market conditions.'
