AIG Back to Making Billions, Sort Of (AIG)

Banking, finance, and taxes

Published: August 6, 2010 8:28 am

Last Updated: April 27, 2020 3:23 pm

American International Group, Inc. (NYSE: AIG) is making money on an operating basis. Joe Public, a.k.a. the Taxpayer, is making money then rightg? Maybe. Uncle Sam Insurance reported earnings of $1.14 EPS, above the Thomson Reuters estimate of $0.99. The earnings were apparently $1.99 on an adjusted basis.

After all items, the loss came to $2.7 billion on a net basis due to a $3.3 billion non-cash goodwill impairment charge that came from discontinued operations. This is also being reported as a $538 million loss attributable to shareholders based on 80% government ownership.

Revenue for the quarter came in at $19.99 billion versus the Thomson Reuters estimate of $19.18 billion.

AIG may also be selling all of its $2.4 billion stake in American General as it continues to sell assets to raise cash.

Our caution here is that “consensus” is such a small group of analysts that the numbers effectively could anything.

So far this morning we have a 2.6% gain to $40.95 before the employment data. The gain was about 5% just 15 minutes ago.

JON C. OGG

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