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Member, Beacon International Group, Ltd.
NEW YORK—AIG on Thursday reported $269 million in net income attributable to AIG, an 84.9% decline from the $1.78 billion the insurer posted in the comparable quarter a year ago.
New York-based American International Group Inc. said in a statement that the results reflect $1.7 billion of pretax cat losses related to the Japan earthquake and tsunami, the New Zealand earthquake and the Australian floods, which was primarily offset by a $1.1 billion valuation gain on AIA Group Ltd. securities and a $744 million increase in the fair value of AIG's interest in Maiden Lane III.
The company's results also reflect a final pretax charge of $3.3 billion that is related to the repayment and termination of the Federal Reserve Bank of New York Credit Facility more than two years early, AIG said.
Although the insurer reported $269 million in net income attributable to AIG, it posted a $543 million net loss attributable to AIG common shareholders, which relates to dividends to preferred shareholders. This relates to the difference between the carrying value of the preferred stock and its fair value, and to AIG's commitment to pay the U.S. Treasury Department's costs to dispose of all its shares of AIG common stock.
AIG property/casualty unit Chartis Inc. reported a first-quarter $463 million operating loss, compared with $879 million in operating income for the prior-year period, which reflects the $1.7 billion in cat losses. Chartis had reported $500 million in cat losses in 2010's first quarter. Chartis reported a 119% combined ratio for the first quarter vs. 102.5% for last year's first quarter.
Net premiums written increased 19.9% to $9.17 billion. This reflects the consolidation of Fuji Fire & Marine Insurance Co. and modest increases in Chartis' U.S. business, according to the insurer.
NEW YORK (Reuters)—The Federal Reserve Bank of New York is planning two auctions of risky mortgage-backed securities from its Maiden Lane II portfolio next week, the bank's website indicated Friday.