AIG, the insurer that has gobbled up around $180bn in taxpayer cash, on Friday reported its results for the fourth quarter and full-year 2009.
Depending on your perspective, the results were either a significant improvement compared with the same period a year ago or quite irksome indeed, given the $100m in bonuses paid to 200 AIG staff.
From the statement, emphasis FT Alphaville’s:
American International Group, Inc. (AIG) today reported a net loss attributable to AIG common shareholders of $8.9 billion for the fourth quarter of 2009, or $65.51 per diluted common share, compared to a net loss of $61.7 billion or $458.99 per diluted share in the fourth quarter of 2008. Fourth quarter 2009 adjusted net loss was $7.2 billion, compared to an adjusted net loss of $38.5 billion in the fourth quarter of 2008.
Not contained in that statement, and much more distressing, was the following (culled from section 1A, Risk Factors, of the company’s 10-K filing with the SEC):
AIG has been significantly and adversely affected by the market turmoil in late 2008 and early 2009, and, despite the recovery in the markets in mid and late 2009, is subject to significant risks, as discussed below. Many of these risks are interrelated and occur under similar business and economic conditions, and the occurrence of certain of them may in turn cause the emergence, or exacerbate the effect, of others. Such a combination could materially increase the severity of the impact on AIG. As a result, should certain of these risks emerge, AIG may need additional support from the U.S. government. Without additional support from the U.S. government, in the future there could exist substantial doubt about AIG’s ability to continue as a going concern.
Oh dear.
Related links:
AIG drops entire derivatives portfolio sale plan portfolio – FT
AIG scraps sale plan for aircraft-leasing unit – FT
Keycorp’s Hancock to oversee AIG risk – FT