Business
AIG Swings to First Quarterly Profit in Seven Quarters (AIG)
AIG Swings to First Quarterly Profit in Seven Quarters (AIG)
About this update from Genesis Ai Corp
[{"type":"text","content":"\nAIG Swings to First Quarterly Profit in Seven Quarters (AIG)\n\n\n Aug. 7, 2009 (Baystreet.ca) -- Embattled insurance company American International Group, Inc. (AIG) said Friday that it saw a profit for the first time in a year and a half, easily beating analyst expectations.\nThe New York-based company reported second quarter net income of $1.8 billion, or $2.30 per share, compared with a net loss of $5.4 billion, or $41.13 per share, in the year-ago period.\nProfit attributable to common shareholders was $311 million. That figure takes into account nearly $1.5 billion in preferred dividends that AIG paid to the federal government. In total, AIG has received $180 billion in federal bailout money since the fall of last year, when its exposure to the credit default swap market would have spelled certain doom had the government not stepped in.\nExcluding one-time items, the company said an adjusted profit of $2.57 per share, which nearly doubled the average Wall Street analyst forecast of $1.33.\nAIG's general insurance operations reported operating income of $1 billion, down from $1.7 billion in the same period last year, while net written premiums plunged 19% percent to $7.9 billion.\nAIG shares rose $3.97, or +17%, in premarket trading Friday.\nThe Bottom Line\nShares of AIG are way off of 52-week highs of $497 a share. The stock has technical support in the $14-$19 price area. If the shares continue the recent torrid run, we see overhead resistance around the $32-$36 price levels. We do not currently rate this former dividend-paying stock, but we do follow the company closely.\nAmerican International Group, Inc. (AIG) does not currently pay a dividend.\nBe sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.\n\n\n\n","length":1986,"tagName":"div"}]