Summary
In the third quarter of 2009, AMERICAN INTERNATIONAL GROUP, INC. (AIG) demonstrated resilience amid a challenging financial landscape, reporting a modest net income attributable to AIG of $455 million, a significant improvement from the substantial net loss of $24.7 billion in the same period of the previous year. This turnaround was largely driven by a substantial increase in net investment income, a significant reduction in net realized capital losses, and positive unrealized market valuation gains on AIG's Financial Products (AIGFP) super senior credit default swap portfolio. The company also saw a considerable reduction in total liabilities, indicating progress in deleveraging. However, the company's financial health remains heavily influenced by its ongoing restructuring and its significant reliance on government support through facilities provided by the Federal Reserve Bank of New York (FRBNY) and the U.S. Department of the Treasury. While AIG's asset disposition plan is underway, with agreements to sell or completed sales of various operations, the full impact of these initiatives is still unfolding. The company continues to navigate substantial legal and regulatory challenges, including ongoing investigations that could materially impact its financial condition and results of operations.
Financial Highlights
26 data points| Revenue | $19.60B |
| SG&A Expenses | $3.53B |
| Interest Expense | $2.09B |
| Net Income | $455.00M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 135.29M |
| Shares Outstanding (Diluted) | 135.46M |
Key Highlights
- 1AIG reported a net income attributable to AIG of $455 million for the third quarter of 2009, a significant turnaround from a net loss of $24.7 billion in the prior year's quarter.
- 2Total assets decreased slightly to $844.3 billion from $860.4 billion at the end of 2008, while total liabilities decreased more substantially to $766.6 billion from $797.7 billion at the end of 2008.
- 3Net investment income significantly increased to $8.7 billion from $2.9 billion year-over-year, driven by improved market conditions and specific gains from investments like Maiden Lane.
- 4Total revenues for the quarter surged to $26.0 billion, primarily due to a dramatic increase in net investment income and positive movements in AIGFP's credit default swap portfolio, compared to a mere $0.9 billion in the prior year's quarter.
- 5The company continues to rely heavily on government support, with outstanding borrowings under the FRBNY Facility at $41.0 billion and a substantial remaining borrowing capacity.
- 6AIG is actively executing its asset disposition plan, with agreements to sell or completed sales of several businesses, aiming to generate proceeds to repay borrowings.
- 7Restructuring and separation expenses totaled $371 million for the quarter, reflecting ongoing efforts to streamline operations.