Bailed-out insurer American International Group (AIG) lost more than $2 billion in the third quarter because of charges and losses from asset sales, and its main insurance businesses turned in mixed results.
AIG said it was on track with a recapitalisation plan, expected to close early next year, that will leave it owing the government around $100 billion and leave the US Treasury with a stake of just above 92 per cent in the company.
As it pursues that deal, though, it is also in the midst of closing a number of asset sales designed to allow it to focus on its life and property and casualty insurance operations.
Those asset sales are in most cases leaving it with huge charges, making for unpredictable results.
AIG had warned in August that the sale of a majority stake in American General Finance to Fortress Investment Group would lead to a $1.9 billion pretax loss.
Although the sale price was not disclosed, it was characterized as a "very small fraction" of the value of the business.
The company also took a $1.3 billion goodwill impairment in the quarter for the sale of Japanese life insurance businesses AIG Star and AIG Edison to Prudential Financial, a deal due to close early next year.
Factoring in those losses and other items, AIG reported a third-quarter loss of $2.4 billion, or $17.62 per share, compared with a year-earlier profit of $455 million, or 68 cents per share.
Operating results, stripping out extraordinary items and discontinued operations, came in at a loss of $200 million, or $1.47 per share.
Shares of AIG were down 1.7 percent at $44 in trading before the market opened.
Reuters