AIG (AIG, Financial), the massive insurance company that had a near death experience during the 2008 financial crisis and the largest holding of Bruce Berkowitz, released its second-quarter financial results today. Though one can’t judge a company by one quarter’s results, the 10k showed overall improvements and a return to profitability.
AIG reported net income of $1.8 billion and after-tax operating income of $1.3 billion for the quarter ended June 30, 2011, compared to a net loss of $2.7 billion and after-tax operating income of $793 million in the second quarter 2010. Last year the company’s results were weighed down by a $3.3 billion good-will impairment charge for discontinued operations. The previous quarter, their results reflected the large repayment they made to the U.S. Treasury.
The company also made a significant step toward recapitalization, issuing a $8.7 billion common stock offering of 100 million shares sold by AIG and 200 million shares sold by the U.S. Treasury. It hopes that continued financial improvements will make it possible for the U.S. Treasury to sell more of their shares.
Chartis, AIG’s global property/casualty business, saw operating income down to $789 million compared to $955 million in the second quarter 2011. This quarter operating income was affected by $530 million in catastrophe losses. Net premiums written increased 17.6%.
SunAmerica Financial Group, the company’s retirement subsidiary, had operating income of $743 million, down from $858 million in the second quarter 2010.
AIG reported net income of $1.8 billion and after-tax operating income of $1.3 billion for the quarter ended June 30, 2011, compared to a net loss of $2.7 billion and after-tax operating income of $793 million in the second quarter 2010. Last year the company’s results were weighed down by a $3.3 billion good-will impairment charge for discontinued operations. The previous quarter, their results reflected the large repayment they made to the U.S. Treasury.
The company also made a significant step toward recapitalization, issuing a $8.7 billion common stock offering of 100 million shares sold by AIG and 200 million shares sold by the U.S. Treasury. It hopes that continued financial improvements will make it possible for the U.S. Treasury to sell more of their shares.
Chartis, AIG’s global property/casualty business, saw operating income down to $789 million compared to $955 million in the second quarter 2011. This quarter operating income was affected by $530 million in catastrophe losses. Net premiums written increased 17.6%.
SunAmerica Financial Group, the company’s retirement subsidiary, had operating income of $743 million, down from $858 million in the second quarter 2010.
