Page last updated at 15:13 GMT, Friday, 6 November 2009

AIG posts second quarterly profit

AIG sign
The insurer still owes the government $85.7bn in loans

Insurer AIG, which was saved by the US government last year, has reported its second straight quarterly profit.

Net income for the three months to September was $92m, compared with a loss of $24.5bn in the same quarter last year - when it was bailed out.

However, AIG's shares fell 6.6% after chief Robert Benmosche warned the firm's run of profits may not continue.

"Expect continued volatility in reported results in the coming quarters," Mr Benmosche said.

This would be because of restructuring charges, AIG said.

AIG was bailed out by the US government in 2008 and is now 80% state-owned. In total, the firm has received $182.5bn of government funding.

Government help

The $92m in net profit was what is available to its shareholders.

Including the government's share as a result of its stake, AIG earned $455m in the quarter.

As of 30 September, AIG's outstanding assistance from the government was $122.31bn, down 4% from the previous quarter.

Of that, AIG owes the US government $85.66bn in loans and interest.

The remaining aid is tied to the value of some of the toxic assets that the government bought from AIG, where the government recoups more money if their value rises.

"We continue to focus on stabilising and strengthening our businesses," Mr Benmosche said.



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