After months of negative news, AIG can breathe a short sigh of relief, as it reports the company’s first quarterly profit since 2007. For the second quarter, ended June 30, 2009, AIG reported net income attributable to AIG of $1.8 billion, including net income attributable to AIG common shareholders of $311 million or $2.30 per diluted common share, compared with a net loss of $5.4 billion or $41.13 per diluted share in the second quarter of 2008. Second-quarter 2009 adjusted net income was $2 billion, compared with an adjusted net loss of $1.3 billion in the second quarter of 2008.
“While our insurance companies’ operating results remain challenged, largely driven by weak economic conditions and the lingering effect of negative AIG events earlier in the year, performance trends stabilized from the first quarter,” says retiring chairman and CEO, 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.”
New executives, scheduled to begin work Monday, will be expected to maintain these numbers. Yesterday, AIG announced its board of directors elected AIG Director Harvey Golub non-executive chairman of the board, succeeding retiring Liddy. Also, on Monday, AIG named Robert Benmosche to replace Liddy as CEO.
“Harvey is a terrific partner, and we are very much looking forward to working together,” Benmosche says. “We have a tremendous opportunity to realize the true value of AIG’s many great businesses for the benefit of all of our stakeholders, including clients, employees, and the U.S. government.”
Golub was elected to the AIG board of directors in May 2009. He was chairman and CEO of American Express Co. from 1993 to 2001.
“It is critical that we preserve and protect the value that has been built over the course of decades in AIG, a unique global franchise,” Golub says. “The entire board and I are committed to working with Bob and the management team to deliver maximum value to all of our stakeholders.”
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