American International Group Inc. (AIG) reported a net loss for the first quarter of 2009 of $4.35 billion or $1.98 per diluted share, compared to a net loss of $7.81 billion or $3.09 per diluted share in the first quarter of 2008. First quarter 2009 adjusted net loss, excluding net realized capital gains (losses) and FAS 133 gains (losses), net of tax, was $1.60 billion, compared to an adjusted net loss of $3.56 billion in the first quarter of 2008.
According to A.M. Best, chairman and CEO Edward Liddy spoke with equity analysts, saying "The loss we have reported was substantially—I repeat, substantially lower than the last quarter—that's the fourth quarter of 2008, and also lower than the first quarter or 2008. We have a good plan in place, and our job now is to execute on that plan."
In other AIG news, the insurer will sell its prime real estate holding in Tokyo for approximately $1.2 billion in cash to Nippon Life Insurance Co. The property consists of approximately one acre of land on which The AIG Otemachi Building in Tokyo is situated.
The transaction is expected to close during the second quarter, according to AIG.
“This transaction has been successfully negotiated by AIG despite the difficult real estate market environment in Japan and globally,” Liddy says. “The sale generated substantial interest from both Japanese and foreign investors, resulting in a very competitive bidding process. AIG is pleased to effectively monetize this asset within the context of its restructuring effort. We view this transaction as a win-win for all concerned, with Nippon Life Insurance Co. acquiring a premier real estate asset.
“We have reached agreement or closed over a dozen deals in the past several months, despite a very challenging economic environment,” Liddy says. “We presently are in various stages of discussions with respect to other potential transactions, as we continue to move forward with our asset disposition and restructuring efforts in order to serve the best interests of AIG and its constituents.”
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access