Business aliases: The AIG name was mired in scandal, so actual insurance business has been conducted under other names.
For almost two years, insurance giant AIG has experienced quarterly losses—until now. The infamous company is reporting its first profitable quarter since 2007, a turnabout that will give the U.S. government a whopping $1.5 billion gain as a shareholder, while individual shareholders get to split $311 million among themselves.
Though market conditions may have improved, some of the profit must be due to the fact that CEO Edward Liddy has taken a salary of $1 a year after an AIG scandal that saw executives collect personal bonuses from government bailout money.
The New York Times:
The American International Group reported a profit on Friday, its first since the third quarter of 2007, saying parts of its business had stabilized and also citing a favorable accounting change.
The company’s net income for the second quarter was $1.8 billion, compared with a $5.3 billion loss in the second quarter of 2008. The federal government’s share of the profit was $1.5 billion, since the government became the company’s biggest shareholder after bailing out A.I.G. last fall.
That leaves a profit of $311 million, or $2.30 a share, for A.I.G.’s common shareholders.