Page last updated at 13:20 GMT, Friday, 26 February 2010

AIG posts $9bn loss in fourth quarter

AIG sign
The insurer turned to loss after two quarters of profits

Insurer AIG, which was saved by the US government in 2008, has posted a loss in the last three months of 2009.

The insurer said it made a net loss of $9bn (£5.9bn) in the fourth quarter, compared with a $62.6bn loss in the same period in 2008.

AIG made a loss following two quarters of profits. Boss Robert Benmosche had previously warned of more "volatility" in terms of profits.

The insurer made a net loss of $12.3bn for the whole of 2009.

In 2008, it lost more than $100bn.

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

The loss was primarily a result of the $25bn in credit that was available from the Federal Reserve Bank of New York.

As of 30 September, AIG owed the US government $85.66bn in loans and interest.

It said that it had reduced that to $60bn by amending the terms of its loan facility with the Federal Bank of New York.

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