AIG trims loss in Q1
Insurance giant AIG reported a net loss in the first quarter of 2009 of $4.35 billion. While undoubtedly a poor result, it at least marked something of an improvement from its fourth-quarter 2008 result when it reported a loss of $61.7 billion - the largest US corporate quarterly loss in history.
Contributing heavily to the loss was a $1.9 billion charge for restructuring costs related to the wind-down of its controversial Financial Products Group (AIGFP), whose losses on credit derivatives ravaged the company to the point of government intervention.
In the wind-down effort, AIGFP has reduced the notional amount of its derivatives portfolio to $1.5 trillion at March 31, from $2.7 trillion at December 31, 2007. The company also reported $2.5 billion in investment losses attributed to market disruption and $1.1 billion in tax-related charges in the quarter.
See also: AIG fallout increases calls for counterparty disclosure
AIG dismantled risk controls on CDS portfolio, says Greenberg
US to restructure AIG bailout after $61.7 billion Q4 loss
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