The insurer says 'significant, rapid declines' in the value of mortgage backed investments contributed to the loss.
American International Group says it swung to a hefty loss for the fourth quarter as bad credit hurt the insurer's investment portfolio.
The New York-based insurer said Thursday it posted a loss of $5.29 billion, or $2.08 per share, in the fourth quarter, compared with profit of $3.44 billion, or $1.31 per share, in the fourth quarter of 2006.
A portfolio of risky credit contracts lost $11.12 billion in value, and AIG also incurred more than $3 billion in investment losses. The company cited "significant, rapid declines" in the value of investments tied to home loans.
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Thursday, February 28, 2008
AIG takes $11B writedown, swings to loss
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