AIG posts huge loss after derivative writedowns

Columbus News.Net
Friday 9th May, 2008

The world's largest insurer, American International Group, has posted its largest ever quarterly loss.

The result has confirmed the second consecutive quarterly loss for AIG, which has been hurt by a write-down of derivatives exposed to bad mortgage investments.

AIG said the first-quarter net loss was US$7.81 billion, compared with net income of US$4.13 billion a year earlier.

AIG said it expected to raise US$7.5 billion of the total capital through a common stock offering.

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