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Aig Reports $2.4 Billion Net Loss Attributable To Aig For The Third Quarter Of 2010 Driven By Restructuring-Related Charges

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http://www.businesswire.com/news/home/20101105005379/en/AIG-Reports-2.4-Billion-Net-Loss-Attributable

NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (AIG) today reported a net loss attributable to AIG of $2.4 billion for the third quarter of 2010, or a loss of $17.62 per diluted common share, compared to net income of $455 million, or $0.68 per diluted common share, in the third quarter of 2009. Income from continuing insurance operations was stable, at $2.1 billion.

The net loss in the quarter is primarily attributable to the following:

* Restructuring-related charges of $4.5 billion, as follows:

o a $1.3 billion deferred tax asset (DTA) valuation allowance charge in connection with a net decrease in underlying asset values supporting the DTA,

o as previously disclosed, a $1.9 billion loss on the pending sale of American General Finance, Inc. (AGF), and

o as previously disclosed, a $1.3 billion goodwill impairment charge in connection with the pending sale of AIG Star Life Insurance Co., Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison).

* $1.2 billion amortization of the prepaid commitment fee asset, including $762 million of net accelerated amortization expense resulting from a $4.6 billion repayment and reduction in the maximum credit available under the Federal Reserve Bank of New York (FRBNY) Credit Facility, primarily from International Lease Finance Corporation (ILFC)’s previously announced repayment of loans from AIG.

* $465 million in impairment charges on certain aircraft in ILFC’s fleet, reflecting management’s outlook related to the future recovery of the airline industry which resulted in lower estimated future lease rates, as well as impairments related to sales and potential sales of aircraft.

* Partially offsetting these charges is a $1.4 billion tax benefit related to a deferred tax valuation allowance release. Increases in deferred tax liabilities associated with components of other comprehensive income reduced the gross deferred tax asset, allowing for the release of a portion of the valuation allowance that had been previously established through a charge to earnings.

More breakdown at the link.

The blackhole that is AIG keeps sucking the cash, but at least it's insurance business is making money, just not at the pace that it's losing it.

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Partially offsetting these charges is a $1.4 billion tax benefit related to a deferred tax valuation allowance release.

$1.3 billion deferred tax asset (DTA) valuation allowance charge in connection with a net decrease in underlying asset values supporting the DTA,

The tax man giveth and the tax man taketh away.

Still they were 100 million better off I guess. Whopee, that will cover the bonuses and execs pay for a year (maybe).

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The tax man giveth and the tax man taketh away.

Still they were 100 million better off I guess. Whopee, that will cover the bonuses and execs pay for a year (maybe).

I certainly wouldn't want these captains of industry to lose their bonus, that would simply be horrific.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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