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.

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